Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share

26. earnings per share

The calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31:

		2011			2010			2009
			Average	Per Share		Average	Per Share		Average	Per Share
(in millions, except per share data)		Income	Shares	Amount	Income	Shares	Amount	Income	Shares	Amount
Earnings per share:
Net income attributable to Bancorp	$	1,297			753			737
Dividends on preferred stock		203			250			226
Net income available to common shareholders		1,094			503			511
Less: Income allocated to participating securities		6			3			4
Net income allocated to common shareholders	$	1,088	906	1.20	500	791	0.63	507	696	0.73
Earnings per diluted share:
Net income available to common shareholders	$	1,094			503			511
Effect of dilutive securities:
Stock-based awards		-	6	-	-	5	-	-	2	-
Series G convertible preferred stock (a)		35	36	(0.02)	-	-	-	(21)	28	(0.06)
Warrants related to Series F preferred stock		-	2	-	-	3	-	-	-	-
Net income available to common shareholders		1,129			503			490
plus assumed conversions
Less: Income allocated to participating securities		6			3			4
Net income allocated to common shareholders
plus assumed conversions	$	1,123	950	1.18	500	799	0.63	486	726	0.67

• The additive effect to income from dividends on convertible preferred stock for the year ended December 31, 2009 included preferred dividends of $14 for Series G preferred shares, offset by a $35 reduction to preferred dividends due to the conversion of a portion of Series G preferred shares during the second quarter of 2009.

Shares are excluded from the computation of net income per diluted share when their inclusion has an anti-dilutive effect on earnings per share. The diluted earnings per share computation for the years 2011, 2010, and 2009excludes 29 million,23 million, and 23 million,respectively, of stock appreciation rights, 8 million,12 million,and 17 million, respectively, of stock optionsand 1 million,1 millionand4 million shares, respectively, of unvested restricted stock that had not yet been exercised. In 2010, 36 million shares related to the Bancorp's Series G preferred stockthat were not part of the conversion of preferred shares in the second quarter of 2009 were excluded from the computation of net income per diluted share because their inclusion would have been anti-dilutive to earnings per share.

For the year ended December 31, 2009, there were 44 million shares under warrants related to the Bancorp's Series F preferred stock from the CPP that were excluded from the computation of net income per diluted share, as their inclusion would have been anti-dilutive to earnings per share due to the exercise price of the shares being greater than the average market price of the common shares. The warrants had an initial exercise price of $11.72 per share.