EARNINGS PER SHARE (EPS)

3 Months Ended

Mar. 31, 2018

12. Earnings Per Share (EPS)

The basic EPS computation is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. The diluted EPS computation is based on those shares used in the basic EPS computation plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding and adjusted to reflect all stock dividends and stock splits.

The following table presents the computation of basic and diluted EPS:

Three Months Ended March 31,
(dollars in millions, except per share data)		2018		2017
Numerator for EPS:
Income from continuing operations	$	950	$	1,211
Less: Net income from continuing operations attributable to noncontrolling interests		11		26
Income attributable to AIG common shareholders from continuing operations		939		1,185
Income (loss) from discontinued operations, net of income tax expense		(1)		-
Net income attributable to AIG common shareholders	$	938	$	1,185
Denominator for EPS:
Weighted average shares outstanding — basic		907,951,597		980,777,243
Dilutive shares		17,314,980		24,537,787
Weighted average shares outstanding — diluted^(a)		925,266,577		1,005,315,030
Income per common share attributable to AIG:
Basic:
Income from continuing operations	$	1.03	$	1.21
Income from discontinued operations	$	-	$	-
Net income attributable to AIG	$	1.03	$	1.21
Diluted:
Income from continuing operations	$	1.01	$	1.18
Income (loss) from discontinued operations	$	-	$	-
Net income attributable to AIG	$	1.01	$	1.18

(a) Dilutive shares included our share-based employee compensation plans and a weighted average portion of the warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011. The number of shares excluded from diluted shares outstanding was 0.7 million and 1.8 million for the three-month periods ended March 31, 2018 and 2017, respectively, because the effect of including those shares in the calculation would have been anti-dilutive.