Earnings Per Share

3 Months Ended

Mar. 31, 2016

19. Earnings Per Share

The following table provides the calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the three months ended March 31:

		2016			2015
			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	$	327			361
Dividends on preferred stock		15			15
Net income available to common shareholders		312			346
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders	$	309	774	0.40	343	810	0.42
Earnings Per Diluted Share:
Net income available to common shareholders	$	312			346
Effect of dilutive securities:
Stock-based awards		-	4		-	9
Net income available to common shareholders		312			346
plus assumed conversions
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders
plus assumed conversions	$	309	778	0.40	343	819	0.42

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 months ended March 31, 2016 and 2015 excludes 20 million and 18 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 months ended March 31, 2016 excludes the impact of the forward contract related to the March 4, 2016 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp's common stock during the first quarter of 2016, the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of March 31, 2016, and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share.

The diluted earnings per share computation for the three months ended March 31, 2015 excludes the impact of the forward contract related to the January 27, 2015 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp's common stock during the first 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 March 31, 2015, and thus the impact of the forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share.