AT&T Wireless 2011 Annual Report Download - page 67

AT&T Inc. 65
NOTE 3. EARNINGS PER SHARE
A reconciliation of the numerators and denominators of
basic earnings per share and diluted earnings per share for
income from continuing operations for the years ended
December 31, 2011, 2010 and 2009, are shown in the
table below:
Year Ended December 31, 2011 2010 2009
Numerators
Numerator for basic earnings
per share:
Income from continuing
operations $4,184 $19,400 $12,427
Income attributable to
noncontrolling interest (240) (315) (309)
Income from continuing
operations attributable to AT&T 3,944 19,085 12,118
Dilutive potential common shares:
Other share-based payment 11 11 10
Numerator for diluted earnings
per share $3,955 $19,096 $12,128
Denominators (000,000)
Denominator for basic earnings
per share:
Weighted-average number of
common shares outstanding 5,928 5,913 5,900
Dilutive potential common
shares:
Stock options 4 3 3
Other share-based payment
(in shares) 18 22 21
Denominator for diluted
earnings per share 5,950 5,938 5,924
Basic earnings per share
from continuing operations
attributable to AT&T $ 0.66 $ 3.23 $ 2.06
Basic earnings per share from
discontinued operations
attributable to AT&T — 0.13 —
Basic earnings per share
attributable to AT&T $ 0.66 $ 3.36 $ 2.06
Diluted earnings per share
from continuing operations
attributable to AT&T $ 0.66 $ 3.22 $ 2.05
Diluted earnings per share from
discontinued operations
attributable to AT&T — 0.13 —
Diluted earnings per share
attributable to AT&T $ 0.66 $ 3.35 $ 2.05
The following table includes Sterling’s operating results, which
are presented in the “Income From Discontinued Operations,
net of tax” line item on the consolidated statements of
income. Prior to the reclassification, these operating results
were reported in our Other segment:
Aug. 27, Dec. 31,
2010 2009
Operating revenues $349 $563
Operating expenses 327 523
Operating income 22 40
Income before income taxes 18 29
Income tax expense 8 9
Income from discontinued operations
during phase-out period 10 20
Gain on disposal of discontinued
operations 769 —
Income from discontinued
operations, net of tax $779 $ 20
Centennial In August 2010, we sold operations in eight
service areas in Louisiana and Mississippi, as required by the
Department of Justice (DOJ), for $273 in cash.
Other Dispositions In 2010, we also sold our domestic
Japanese outsourcing services company for $109. In 2009, we
sold a professional services business for $174 and eliminated
$113 of goodwill.
Other Adjustments
T-Mobile In March 2011, we agreed to acquire from
Deutsche Telekom AG (Deutsche Telekom) all shares of
T-Mobile USA, Inc. (T-Mobile) for approximately $39,000,
subject to certain adjustments. In December 2011, in light
of opposition to the merger from the DOJ and FCC, we and
Deutsche Telekom agreed to terminate the transaction.
Pursuant to the purchase agreement, we paid a breakup fee
of $3,000, entered into a broadband roaming agreement and,
pursuant to regulatory approvals, will transfer certain wireless
spectrum with a book value of $962. These agreement
termination charges were included in “Selling, general and
administrative” expenses in our Other segment. Termination of
the purchase agreement also terminated our associated credit
agreement with a group of banks, dated as of March 31, 2011,
to partially fund the purchase.
During 2010, we recorded $78 in reductions of Dobson
Communications Corporation and BellSouth Corporation
(BellSouth) restructuring liabilities previously included in the
purchase accounting for those deals, and we recorded an
offsetting reduction of goodwill.