Earnings Per Share

3 Months Ended

Mar. 31, 2017

18. 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:

		2017				2016^(a)
For the three months ended March 31,			Average	Per Share		Average	Per Share
(in millions, except per share data)		Income	Shares	Amount	Income	Shares	Amount
Earnings Per Share:
Net income available to common shareholders	$	290			311
Less: Income allocated to participating securities		4			3
Net income allocated to common shareholders	$	286	748	0.38	308	774	0.40
Earnings Per Diluted Share:
Net income available to common shareholders	$	290			311
Effect of dilutive securities:
Stock-based awards		-	13		-	4
Net income available to common shareholders		290			311
plus assumed conversions
Less: Income allocated to participating securities		4			3
Net income allocated to common shareholders
plus assumed conversions	$	286	761	0.38	308	778	0.40

A net tax deficiency of $1 million was reclassified from capital surplus to applicable income tax expense and average common shares outstanding – diluted were adjusted at March 31, 2016, related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016

Shares are excluded from the computation of earnings 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, 2017 and March 31, 2016 excludes 6 million and 27 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.