EARNINGS PER SHARE (EPS)

9 Months Ended

Sep. 30, 2018

13. 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				Nine Months Ended
	September 30,				September 30,
(dollars in millions, except per share data)		2018		2017		2018		2017
Numerator for EPS:
Income (loss) from continuing operations	$	(1,220)	$	(1,712)	$	661	$	609
Less: Net income from continuing operations attributable to noncontrolling interests		-		26		5		40
Income (loss) attributable to AIG common shareholders
from continuing operations		(1,220)		(1,738)		656		569
Income (loss) from discontinued operations, net of income tax expense		(39)		(1)		(40)		7
Net income (loss) attributable to AIG common shareholders	$	(1,259)	$	(1,739)	$	616	$	576
Denominator for EPS:
Weighted average shares outstanding — basic		895,237,359		908,667,044		902,081,555		938,130,832
Dilutive shares		-		-		14,736,714		23,165,114
Weighted average shares outstanding — diluted^(a)(b)		895,237,359		908,667,044		916,818,269		961,295,946
Income (loss) per common share attributable to AIG:
Basic:
Income (loss) from continuing operations	$	(1.37)	$	(1.91)	$	0.72	$	0.60
Income (loss) from discontinued operations	$	(0.04)	$	-	$	(0.04)	$	0.01
Income (loss) attributable to AIG	$	(1.41)	$	(1.91)	$	0.68	$	0.61
Diluted:
Income (loss) from continuing operations	$	(1.37)	$	(1.91)	$	0.71	$	0.59
Income (loss) from discontinued operations	$	(0.04)	$	-	$	(0.04)	$	0.01
Income (loss) attributable to AIG	$	(1.41)	$	(1.91)	$	0.67	$	0.60

(a) Shares in the diluted EPS calculation represent basic shares for the three-month periods ended September 30, 2018 and 2017 due to the net losses in those periods. The shares excluded from the calculation were 13,538,168 and 22,459,868 shares, respectively.

(b) 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 5.8 million and 4.7 million for the three- and nine-month periods ended September 30, 2018, respectively, and 2.4 million and 2.0 million for the three- and nine-month periods ended September 30, 2017, respectively, because the effect of including those shares in the calculation would have been anti-dilutive.