Earnings Per Common Share

12 Months Ended

Dec. 31, 2016

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):


	Year Ended December 31,
	2016		2015		2014
Basic EPS:
Net income	$	2,676	$	7,610	$	2,882
Weighted average common shares outstanding (in thousands)		552,308		668,393		717,456

Basic EPS	$	4.85	$	11.39	$	4.02

Diluted EPS:
Net income	$	2,676	$	7,610	$	2,882
Change in fair value of conversion feature on 7.25% convertible senior notes ^(a)		—		—		3

Net income for purposes of computing diluted EPS	$	2,676	$	7,610	$	2,885
Share computation for diluted EPS (in thousands):
Basic weighted average common shares outstanding		552,308		668,393		717,456
Dilutive effect of stock awards		3,791		18,962		15,603
Assumed conversion of convertible senior notes		—		—		957

Diluted weighted average common shares outstanding		556,099		687,355		734,016

Diluted EPS	$	4.81	$	11.07	$	3.93

The following were excluded from the calculation of diluted EPS (in thousands):
Stock options, SARs and RSUs because inclusion would be antidilutive		1,429		764		226

^(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.