Earnings Per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share

19. Earnings Per Share

The calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share were as follows:
		2012			2011
For the three months ended September 30,			Average	Per Share		Average	Per Share
(in millions, except per share data)		Income	Shares	Amount	Income	Shares	Amount
Earnings per share:
Net income attributable to Bancorp	$	363			381
Dividends on preferred stock		9			8
Net income available to common shareholders		354			373
Less: Income allocated to participating securities		2			2
Net income allocated to common shareholders	$	352	904	0.39	371	915	0.41
Earnings per diluted share:
Net income available to common shareholders	$	354			373
Effect of dilutive securities:
Stock-based awards		-	5	-	-	5	-
Series G convertible preferred stock		9	36	(0.01)	9	35	(0.01)
Net income available to common shareholders		363			382
plus assumed conversions
Less: Income allocated to participating securities		2			2
Net income allocated to common shareholders
plus assumed conversions	$	361	945	0.38	380	955	0.40
		2012			2011
For the nine months ended September 30,			Average	Per Share		Average	Per Share
(in millions, except per share data)		Income	Shares	Amount	Income	Shares	Amount
Earnings per share:
Net income attributable to Bancorp	$	1,178			983
Dividends on preferred stock		26			194
Net income available to common shareholders		1,152			789
Less: Income allocated to participating securities		7			4
Net income allocated to common shareholders	$	1,145	911	1.26	785	904	0.87
Earnings per diluted share:
Net income available to common shareholders	$	1,152			789
Effect of dilutive securities:
Stock-based awards		-	5	-	-	5	-
Series G convertible preferred stock		26	36	(0.03)	26	36	(0.01)
Warrants related to Series F preferred stock		-	-	-	-	2	-
Net income available to common shareholders		1,178			815
plus assumed conversions
Less: Income allocated to participating securities		7			4
Net income allocated to common shareholders
plus assumed conversions	$	1,171	952	1.23	811	947	0.86

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 three and nine months ended September 30, 2012 excludes 39 million and36 million, respectively, of stock appreciation rights and3 million and5 million,respectively, of stock options. The diluted earnings per share calculation also excludes 1 million of unvested restricted stock that has not yet been exercised for the nine months ended September 30, 2012. The diluted earnings per share computation for the three and nine months ended September 30, 2011 excludes 31 million and 28 million, respectively, of stock appreciation rights, 7 million and 9 million, respectively, of stock options and 2 million and 1 million shares, respectively, of unvested restricted stock that had not yet been exercised.

The diluted earnings per share computation for the three and nine months ended September 30, 2012 excludes the impact of the forward contract related to the August 23, 2012 accelerated share repurchase transaction because, based upon the average daily volume-weighted average price of the Bancorp's common stock during the third quarter of 2012, the counterparty would have been required to deliver approximately 2million shares as of September 30, 2012, and thus the impact would have been anti-dilutive to earnings per share.