Earnings Per Share

9 Months Ended

Sep. 30, 2016

20. 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 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	$	516			381
Dividends on preferred stock		15			15
Net income available to common shareholders		501			366
Less: Income allocated to participating securities		5			4
Net income allocated to common shareholders	$	496	751	0.66	362	796	0.46
Earnings Per Diluted Share:
Net income available to common shareholders	$	501			366
Effect of dilutive securities:
Stock-based awards		-	6		-	9
Net income available to common shareholders		501			366
plus assumed conversions
Less: Income allocated to participating securities		5			4
Net income allocated to common shareholders
plus assumed conversions	$	496	757	0.65	362	805	0.45

		2016			2015
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	$	1,175			1,056
Dividends on preferred stock		52			52
Net income available to common shareholders		1,123			1,004
Less: Income allocated to participating securities		11			10
Net income allocated to common shareholders	$	1,112	761	1.46	994	803	1.24
Earnings Per Diluted Share:
Net income available to common shareholders	$	1,123			1,004
Effect of dilutive securities:
Stock-based awards		-	6		-	9
Net income available to common shareholders		1,123			1,004
plus assumed conversions
Less: Income allocated to participating securities		11			10
Net income allocated to common shareholders
plus assumed conversions	$	1,112	767	1.45	994	812	1.22

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 nine months ended September 30, 2016 excludes 20 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 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, 2016 excludes the impact of the forward contract related to the August 5, 2016 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp’s common stock from the repurchase date through the end of the third 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 September 30, 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 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 from the repurchase date through the end of 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 forward contract related to the accelerated share repurchase transaction would have been anti-dilutive to earnings per share.