Earnings Per Share

6 Months Ended

Jun. 30, 2018

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:

		2018				2017
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 available to common shareholders	$	563			344
Less: Income allocated to participating securities		6			4
Net income allocated to common shareholders	$	557	683	0.81	340	741	0.46
Earnings Per Diluted Share:
Net income available to common shareholders	$	563			344
Effect of dilutive securities:
Stock-based awards		-	13		-	11
Net income available to common shareholders plus assumed conversions		563			344
Less: Income allocated to participating securities		6			4
Net income allocated to common shareholders
plus assumed conversions	$	557	696	0.80	340	752	0.45

		2018				2017
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 available to common shareholders	$	1,252			634
Less: Income allocated to participating securities		15			7
Net income allocated to common shareholders	$	1,237	687	1.80	627	745	0.84
Earnings Per Diluted Share:
Net income available to common shareholders	$	1,252			634
Effect of dilutive securities:
Stock-based awards		-	13		-	12
Net income available to common shareholders plus assumed conversions		1,252			634
Less: Income allocated to participating securities		14			7
Net income allocated to common shareholders
plus assumed conversions	$	1,238	700	1.77	627	757	0.83

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 both the three and six months ended June 30, 2018 excludes 2 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, 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 six months ended June 30, 2017 excludes the impact of the forward contract related to the May 1, 2017 accelerated share repurchase transaction. Based upon the average daily volume weighted-average price of the Bancorp’s common stock during the second 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 June 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.