Earnings Per Share

9 Months Ended

Sep. 30, 2015

21. Earnings Per Share

The following tables provide the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share:

		2015			2014
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	$	381			340
Dividends on preferred stock		15			12
Net income available to common shareholders		366			328
Less: Income allocated to participating securities		4			3
Net income allocated to common shareholders	$	362	796	0.46	325	829	0.39
Earnings per diluted share:
Net income available to common shareholders	$	366			328
Effect of dilutive securities:
Stock-based awards		-	9		-	9
Net income available to common shareholders		366			328
plus assumed conversions
Less: Income allocated to participating securities		4			3
Net income allocated to common shareholders
plus assumed conversions	$	362	805	0.45	325	838	0.39

		2015			2014
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	$	1,056			1,096
Dividends on preferred stock		52			44
Net income available to common shareholders		1,004			1,052
Less: Income allocated to participating securities		10			8
Net income allocated to common shareholders	$	994	803	1.24	1,044	838	1.25
Earnings per diluted share:
Net income available to common shareholders	$	1,004			1,052
Effect of dilutive securities:
Stock-based awards		-	9		-	10
Net income available to common shareholders		1,004			1,052
plus assumed conversions
Less: Income allocated to participating securities		10			8
Net income allocated to common shareholders
plus assumed conversions	$	994	812	1.22	1,044	848	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, 2015 excludes 16 million and 15 million, respectively, of SARs and an immaterial amount of stock options because their inclusion would have been anti-dilutive. The diluted earnings per share computation for the three and nine months ended September 30, 2014 excludes 13 million and 11 million, respectively, of SARs and an immaterial amount of stock options because their inclusion would have been anti-dilutive.

The diluted earnings per share computation for the three and nine months ended September 30, 2015 excludes the impact of the forward contract related to the September 9, 2015 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp's common stock during the third quarter of 2015, the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of September 30, 2015, 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, 2014 excludes the impact of the forward contract related to the July 24, 2014 accelerated share repurchase transaction. Based upon the average daily volume weighted-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 settlement of 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.