Earnings Per Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Accounting Policy

The Company computes earnings per share ("EPS") using a two-class method by including participating securities which entitle their holders to receive nonforfeitable dividends or dividend equivalents before vesting. Restricted stock awards and share units under the AGC supplemental employee retirement plan ("SERP") plan are considered participating securities as they received non-forfeitable rights to dividends at the same rate as common stock.

The two-class method of computing EPS is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic EPS is then calculated by dividing net (loss) income available to common shareholders of Assured Guaranty by the weighted‑average number of common shares outstanding during the period. Diluted EPS adjusts basic EPS for the effects of restricted stock, stock options, equity units and other potentially dilutive financial instruments (“dilutive securities”), only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method assuming nonvested shares are not converted into common shares. With respect to the equity units, which were settled on June 1, 2012 (see Note 17, Long-Term Debt and Credit Facilities), the Company used the treasury stock method in computing diluted EPS. Equity forwards were included in the calculation of basic EPS when such forward contracts were satisfied and the holders thereof became common stock holders. The Company has a single class of common stock.

Computation of Earnings Per Share

	Year Ended December 31,
	2014		2013		2012
	(in millions, except per share amounts)
Basic EPS:
Net income (loss) attributable to AGL	$	1,088	$	808	110
Less: Distributed and undistributed income (loss) available to nonvested shareholders	0		1		0
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, basic	$	1,088	$	807	110
Basic shares	172.6		186.6		189.2
Basic EPS	$	6.30	$	4.32	$	0.58
Diluted EPS:
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, basic	$	1,088	$	807	$	110
Plus: Re-allocation of undistributed income (loss) available to nonvested shareholders of AGL and subsidiaries	0		0		0
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, diluted	$	1,088	$	807	$	110
Basic shares	172.6		186.6		189.2
Effect of dilutive securities:
Options and restricted stock awards	1.0		1.0		0.8
Equity units	—		—		0.7
Diluted shares	173.6		187.6		190.7
Diluted EPS	$	6.26	$	4.30	$	0.57
Potentially dilutive securities excluded from computation of EPS because of antidilutive effect	1.6		2.7		9.9