Earnings Per Common Share |
3. Earnings Per Common Share
The following table sets forth the computation of basic
and diluted earnings per common share (EPS) (in millions, except
share and per share amounts in thousands):
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Year Ended December 31, |
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2016 |
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2015 |
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2014 |
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Basic
EPS:
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Net income
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$ |
2,676 |
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$ |
7,610 |
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$ |
2,882 |
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Weighted average
common shares outstanding (in thousands)
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552,308 |
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668,393 |
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717,456 |
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Basic EPS
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$ |
4.85 |
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$ |
11.39 |
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$ |
4.02 |
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Diluted
EPS:
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Net income
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$ |
2,676 |
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$ |
7,610 |
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$ |
2,882 |
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Change in fair value
of conversion feature on 7.25% convertible senior notes (a)
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— |
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— |
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3 |
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Net income for
purposes of computing diluted EPS
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$ |
2,676 |
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$ |
7,610 |
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$ |
2,885 |
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Share computation for
diluted EPS (in thousands):
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Basic weighted
average common shares outstanding
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552,308 |
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668,393 |
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717,456 |
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Dilutive effect of
stock awards
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3,791 |
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18,962 |
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15,603 |
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Assumed conversion of
convertible senior notes
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— |
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— |
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957 |
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Diluted weighted
average common shares outstanding
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556,099 |
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687,355 |
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734,016 |
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Diluted
EPS
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$ |
4.81 |
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$ |
11.07 |
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$ |
3.93 |
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The following were
excluded from the calculation of diluted EPS (in
thousands):
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Stock options, SARs
and RSUs because inclusion would be antidilutive
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1,429 |
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764 |
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226 |
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(a) |
In March 2014, we notified the holders of the 7.25%
convertible senior notes that we had elected to settle all future
conversions solely in cash instead of shares of AAG common stock in
accordance with the related indenture. Thus, the diluted shares
include the weighted average impact of the 7.25% convertible senior
notes only for the period from January 1, 2014 to
March 12, 2014. In addition, under GAAP, we must adjust the
numerator for purposes of calculating diluted EPS by the change in
fair value of the conversion feature from March 12, 2014 to
May 15, 2014, which increased GAAP net income for purposes of
computing diluted EPS by $3 million for the year ended
December 31, 2014.
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