Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share

Earnings Per Share

21. Earnings Per Share

The calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share were as follows:
		2014			2013
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	$	340			421
Dividends on preferred stock		12			-
Net income available to common shareholders		328			421
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders	$	325	829	0.39	418	880	0.47
Earnings per diluted share:
Net income available to common shareholders	$	328			421
Effect of dilutive securities:
Stock-based awards		-	9		-	8
Net income available to common shareholders		328			421
plus assumed conversions
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders
plus assumed conversions	$	325	838	0.39	418	888	0.47
		2014			2013
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	$	1,096			1,433
Dividends on preferred stock		44			18
Net income available to common shareholders		1,052			1,415
Less: Income allocated to participating securities		8			10
Net income allocated to common shareholders	$	1,044	838	1.25	1,405	870	1.62
Earnings per diluted share:
Net income available to common shareholders	$	1,052			1,415
Effect of dilutive securities:
Stock-based awards		-	10		-	7
Series G convertible preferred stock		-	-		18	24
Net income available to common shareholders		1,052			1,433
plus assumed conversions
Less: Income allocated to participating securities		8			10
Net income allocated to common shareholders
plus assumed conversions	$	1,044	848	1.23	1,423	901	1.58

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, 2014excludes 13 million and 11 million, respectively, of stock appreciation rights andan immaterial amount of stock options.The diluted earnings per share computation for the three and nine months ended September 30, 2013 excludes 24 million and 25 million, respectively, of stock appreciation rights. The diluted earnings per share computation excludes an immaterial amount of stock options for the three months ended September 30, 2013 and1million of 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, 2014 excludes the impact of the forward contract related to the July24, 2014accelerated share repurchase transaction. Based upon the average daily volumeweighted average price of the Bancorp's common stock during the third quarter of 2014, the counterparty to the transaction would have been required to deliver additional shares for the settlementof the forward contract as of September 30, 2014, 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, 2013 excludes the impact of the forward contract related to the May 21, 2013 accelerated share repurchase transaction.Based upon the average daily volumeweighted 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 additional shares for the settlementof the forward contract as of September 30, 2013, and thus the impact of the accelerated share repurchase transaction would have been anti-dilutive to earnings per share.