EARNINGS PER COMMON SHARE (EPS)

6 Months Ended

Jun. 30, 2019

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

13. Earnings Per Common 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 common 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				Six Months Ended
	June 30,				June 30,
(dollars in millions, except per common share data)		2019		2018		2019		2018
Numerator for EPS:
Income from continuing operations	$	1,391	$	931	$	2,328	$	1,881
Less: Net income (loss) from continuing operations attributable to noncontrolling interests		281		(6)		564		5
Less: Preferred stock dividends		7		-		7		-
Income attributable to AIG common shareholders
from continuing operations		1,103		937		1,757		1,876
Loss from discontinued operations, net of income tax expense		(1)		-		(1)		(1)
Net income attributable to AIG common shareholders	$	1,102	$	937	$	1,756	$	1,875
Denominator for EPS:
Weighted average common shares outstanding — basic		876,382,884		903,215,488		875,885,588		905,566,733
Dilutive common shares		11,942,158		13,356,993		7,035,659		15,335,987
Weighted average common shares outstanding — diluted(a)		888,325,042		916,572,481		882,921,247		920,902,720
Income per common share attributable to AIG common
shareholders:
Basic:
Income from continuing operations	$	1.26	$	1.04	$	2.00	$	2.07
Income from discontinued operations	$	-	$	-	$	-	$	-
Net income attributable to AIG common shareholders	$	1.26	$	1.04	$	2.00	$	2.07
Diluted:
Income from continuing operations	$	1.24	$	1.02	$	1.99	$	2.04
Income from discontinued operations	$	-	$	-	$	-	$	-
Net income attributable to AIG common shareholders	$	1.24	$	1.02	$	1.99	$	2.04

(a)Dilutive common shares include 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 common shares excluded from diluted shares outstanding was 5.4 million and 34.8 million for the three- and six-month periods ended June 30, 2019, respectively, and 5.2 million and 4.2 million for the three- and six-month periods ended June 30, 2018, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive.