EARNINGS PER SHARE (EPS)

6 Months Ended

Jun. 30, 2015

11. 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				Six Months Ended
	June 30,				June 30,
(dollars in millions, except per share data)		2015		2014		2015		2014
Numerator for EPS:
Income from continuing operations	$	1,775	$	3,006	$	4,251	$	4,665
Less: Net loss from continuing operations attributable to noncontrolling interests		(9)		(37)		-		(34)
Income attributable to AIG common shareholders from continuing operations		1,784		3,043		4,251		4,699
Income (loss) from discontinued operations, net of income tax expense		16		30		17		(17)
Net income attributable to AIG common shareholders		1,800		3,073		4,268		4,682
Denominator for EPS:
Weighted average shares outstanding - basic		1,329,157,366		1,442,397,111		1,347,452,833		1,450,776,629
Dilutive shares		36,233,065		22,279,219		28,873,138		17,587,654
Weighted average shares outstanding - diluted^*		1,365,390,431		1,464,676,330		1,376,325,971		1,468,364,283
Income per common share attributable to AIG:
Basic:
Income from continuing operations	$	1.34	$	2.11	$	3.16	$	3.24
Income (loss) from discontinued operations	$	0.01	$	0.02	$	0.01	$	(0.01)
Net income attributable to AIG	$	1.35	$	2.13	$	3.17	$	3.23
Diluted:
Income from continuing operations	$	1.31	$	2.08	$	3.09	$	3.20
Income (loss) from discontinued operations	$	0.01	$	0.02	$	0.01	$	(0.01)
Net income attributable to AIG	$	1.32	$	2.10	$	3.10	$	3.19

* Dilutive 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 shares excluded from diluted shares outstanding was 0.2 million and 0.3 million for the three- and six-month periods ended June 30, 2015, respectively, and 0.3 million for both the three- and six-month periods ended June 30, 2014, because the effect of including those shares in the calculation would have been anti-dilutive.