Earnings Per Share

9 Months Ended

Sep. 30, 2017

24. 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:

		2017				2016^(a)
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 available to common shareholders	$	999			501
Less: Income allocated to participating securities		10			5
Net income allocated to common shareholders	$	989	721	1.37	496	751	0.66
Earnings Per Diluted Share:
Net income available to common shareholders	$	999			501
Effect of dilutive securities:
Stock-based awards		-	12		-	7
Net income available to common shareholders plus assumed conversions		999			501
Less: Income allocated to participating securities		10			5
Net income allocated to common shareholders
plus assumed conversions	$	989	733	1.35	496	758	0.65

Average common shares outstanding - diluted were adjusted for the three months ended September 30, 2016 related to the early adoption of ASU 2016-09 during the fourth quarter of 2016, with an effective date of January 1, 2016

		2017				2016^(a)
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 available to common shareholders	$	1,633			1,118
Less: Income allocated to participating securities		18			12
Net income allocated to common shareholders	$	1,615	737	2.19	1,106	761	1.45
Earnings Per Diluted Share:
Net income available to common shareholders	$	1,633			1,118
Effect of dilutive securities:
Stock-based awards		-	12		-	6
Net income available to common shareholders plus assumed conversions		1,633			1,118
Less: Income allocated to participating securities		18			12
Net income allocated to common shareholders
plus assumed conversions	$	1,615	749	2.16	1,106	767	1.44

Net tax deficiencies of $6 were reclassified from capital surplus to applicable income tax expense and average common shares outstanding - diluted were adjusted for the nine months ended September 30, 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 and nine months ended September 30, 2017 excludes 4 million and 5 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 20 million and 23 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, 2017 excludes the impact of the forward contract related to the August 17, 2017 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp’s common stock during the third quarter of 2017, the counterparty to the transaction would have been required to deliver additional shares for the settlement of the forward contract as of September 30, 2017, 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, 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 during 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.