Earnings Per Share

6 Months Ended

Jun. 30, 2016

19. 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:

		2016			2015
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	$	333			315
Dividends on preferred stock		23			23
Net income available to common shareholders		310			292
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders	$	307	759	0.40	289	804	0.36
Earnings Per Diluted Share:
Net income available to common shareholders	$	310			292
Effect of dilutive securities:
Stock-based awards		-	6		-	9
Net income available to common shareholders		310			292
plus assumed conversions
Less: Income allocated to participating securities		3			3
Net income allocated to common shareholders
plus assumed conversions	$	307	765	0.40	289	813	0.36

		2016			2015
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	$	660			676
Dividends on preferred stock		38			38
Net income available to common shareholders		622			638
Less: Income allocated to participating securities		6			6
Net income allocated to common shareholders	$	616	766	0.80	632	807	0.78
Earnings Per Diluted Share:
Net income available to common shareholders	$	622			638
Effect of dilutive securities:
Stock-based awards		-	6		-	9
Net income available to common shareholders		622			638
plus assumed conversions
Less: Income allocated to participating securities		6			6
Net income allocated to common shareholders
plus assumed conversions	$	616	772	0.80	632	816	0.77

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 both the three and six months ended June 30, 2016 excludes 21 million 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 six months ended June 30, 2015 excludes 16 million and 17 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 six months ended June 30, 2015 excludes the impact of the forward contract related to the April 30, 2015 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp’s common stock during the second 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 June 30, 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.