EARNINGS PER SHARE (EPS)

9 Months Ended

Sep. 30, 2014

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

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)		2014		2013		2014		2013
Numerator for EPS:
Income from continuing operations	$	2,199	$	2,148	$	6,864	$	7,046
Less: Net income (loss) from continuing operations attributable to noncontrolling interests		9		(40)		(25)		12
Income attributable to AIG common shareholders from continuing operations		2,190		2,188		6,889		7,034
Income (loss) from discontinued operations, net of income tax expense		2		(18)		(15)		73
Net income attributable to AIG common shareholders		2,192		2,170		6,874		7,107
Denominator for EPS:
Weighted average shares outstanding - basic		1,419,239,774		1,475,053,126		1,440,148,774		1,476,007,034
Dilutive shares		22,828,068		10,269,732		19,334,459		5,403,839
Weighted average shares outstanding - diluted*		1,442,067,842		1,485,322,858		1,459,483,233		1,481,410,873
Income per common share attributable to AIG:
Basic:
Income from continuing operations	$	1.54	$	1.48	$	4.78	$	4.77
Income (loss) from discontinued operations	$	-	$	(0.01)	$	(0.01)	$	0.05
Net income attributable to AIG	$	1.54	$	1.47	$	4.77	$	4.82
Diluted:
Income from continuing operations	$	1.52	$	1.47	$	4.72	$	4.75
Income (loss) from discontinued operations	$	-	$	(0.01)	$	(0.01)	$	0.05
Net income attributable to AIG	$	1.52	$	1.46	$	4.71	$	4.80

* Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, a weighted average portion of the warrants issued to AIG shareholders as part of the recapitalization in January 2011 and a weighted average portion of the warrants issued to the Department of the Treasury in 2009 that we repurchased in the first quarter of 2013. The number of shares excluded from diluted shares outstanding was 0.3 million for both the three- and nine-month periods ended September 30,2014, and 0.4 million and 51 million for the three- and nine-month periods ended September 30,2013, respectively, because the effect of including those shares in the calculation would have been anti-dilutive.