Earnings Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share

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:
		2013			2012
For the three months ended June 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	$	591			385
Dividends on preferred stock		9			9
Net income available to common shareholders		582			376
Less: Income allocated to participating securities		4			3
Net income allocated to common shareholders	$	578	859	0.67	373	914	0.41
Earnings per diluted share:
Net income available to common shareholders	$	582			376
Effect of dilutive securities:
Stock-based awards		-	6	-	-	5	-
Series G convertible preferred stock		9	36	(0.02)	9	36	(0.01)
Net income available to common shareholders		591			385
plus assumed conversions
Less: Income allocated to participating securities		4			3
Net income allocated to common shareholders
plus assumed conversions	$	587	901	0.65	382	955	0.40
		2013			2012
For the six months ended June 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	$	1,013			815
Dividends on preferred stock		18			18
Net income available to common shareholders		995			797
Less: Income allocated to participating securities		7			5
Net income allocated to common shareholders	$	988	865	1.14	792	914	0.87
Earnings per diluted share:
Net income available to common shareholders	$	995			797
Effect of dilutive securities:
Stock-based awards		-	6	-	-	6	-
Series G convertible preferred stock		18	36	(0.03)	18	36	(0.02)
Net income available to common shareholders		1,013			815
plus assumed conversions
Less: Income allocated to participating securities		7			5
Net income allocated to common shareholders
plus assumed conversions	$	1,006	907	1.11	810	956	0.85

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 six months ended June 30, 2013excludes 25 million and26 million, respectively, of stock appreciation rights andan immaterial amount of stock options for the three months ended June 30, 2013and 2 millionof stock options for the six months ended June 30, 2013. The diluted earnings per share computation for the three and six months ended June 30, 2012 excludes 39 million and 34 million, respectively, of stock appreciation rights, 5 million and 6 million, respectively, of stock options and 3 million and 2 million shares, respectively, of unvested restricted stock that had not yet been exercised.

The diluted earnings per share computation for the three and six months ended June 30, 2013 excludes the impact of the forward contract related to the May 21, 2013 share repurchase agreement. Based upon the average daily volume-weighted average price of the Bancorp's common stock during the second quarter of 2013, the counterparty to the transaction would have been required to deliver approximately 5 million shares as of June 30, 2013, and thus the impact of the accelerated share repurchase transaction would have been anti-dilutive to earnings per share.