Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share

Earnings Per Share

20. 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 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	$	421			363
Dividends on preferred stock		-			9
Net income available to common shareholders		421			354
Less: Income allocated to participating securities		3			2
Net income allocated to common shareholders	$	418	880	0.47	352	904	0.39
Earnings per diluted share:
Net income available to common shareholders	$	421			354
Effect of dilutive securities:
Stock-based awards		-	8	-	-	5	-
Series G convertible preferred stock		-	-	-	9	36	(0.01)
Net income available to common shareholders		421			363
plus assumed conversions
Less: Income allocated to participating securities		3			2
Net income allocated to common shareholders
plus assumed conversions	$	418	888	0.47	361	945	0.38
		2013			2012
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	$	1,433			1,178
Dividends on preferred stock		18			26
Net income available to common shareholders		1,415			1,152
Less: Income allocated to participating securities		10			7
Net income allocated to common shareholders	$	1,405	870	1.62	1,145	911	1.26
Earnings per diluted share:
Net income available to common shareholders	$	1,415			1,152
Effect of dilutive securities:
Stock-based awards		-	7	-	-	5	-
Series G convertible preferred stock		18	24	(0.04)	26	36	(0.03)
Net income available to common shareholders		1,433			1,178
plus assumed conversions
Less: Income allocated to participating securities		10			7
Net income allocated to common shareholders
plus assumed conversions	$	1,423	901	1.58	1,171	952	1.23

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, 2013excludes 24 million and25 million, respectively, of stock appreciation rights andan immaterial amount of stock options for the three months ended September 30, 2013and 1 millionof stock options for the nine months ended September 30, 2013. The diluted earnings per share computation for the three and nine months ended September 30, 2012 excludes 39 million and 36 million, respectively, of stock appreciation rights and3 million and 5 million, respectively, of stock options.

The diluted earnings per share computation for the three and nine months ended September 30, 2013 excludes the impact of the forward contract related to the May 21, 2013 share repurchase agreement. Based on the average daily volume-weighted average price of the Bancorp's common stock during the third quarter of 2013, the counterparty to the transaction would have been required to deliver approximately 4 million shares as of September 30, 2013, and thus the impact of the accelerated share repurchase transaction would have been anti-dilutive to earnings per share. The diluted earnings per share computation for the three and nine months ended September 30, 2012 excluded 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 2 million shares as of September 30, 2012, and thus the impact would have been anti-dilutive to earnings per share.