Earnings Per Share

9 Months Ended

Sep. 30, 2018

21. 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 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	$	418			999
Less: Income allocated to participating securities		5			10
Net income allocated to common shareholders	$	413	668	0.62	989	721	1.37
Earnings Per Diluted Share:
Net income available to common shareholders	$	418			999
Effect of dilutive securities:
Stock-based awards		-	11		-	12
Net income available to common shareholders plus assumed conversions		418			999
Less: Income allocated to participating securities		5			10
Net income allocated to common shareholders
plus assumed conversions	$	413	679	0.61	989	733	1.35

		2018				2017
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	$	1,669			1,633
Less: Income allocated to participating securities		18			18
Net income allocated to common shareholders	$	1,651	680	2.43	1,615	737	2.19
Earnings Per Diluted Share:
Net income available to common shareholders	$	1,669			1,633
Effect of dilutive securities:
Stock-based awards		-	13		-	12
Net income available to common shareholders plus assumed conversions		1,669			1,633
Less: Income allocated to participating securities		18			18
Net income allocated to common shareholders
plus assumed conversions	$	1,651	693	2.38	1,615	749	2.16

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 nine months ended September 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 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, 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.