EARNINGS PER SHARE (EPS)

3 Months Ended

Mar. 31, 2017

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 March 31,
(dollars in millions, except per share data)		2017		2016
Numerator for EPS:
Income (loss) from continuing operations	$	1,211	$	(156)
Less: Net income from continuing operations attributable to noncontrolling interests		26		(20)
Income (loss) attributable to AIG common shareholders from continuing operations		1,185		(136)
Loss from discontinued operations, net of income tax expense		-		(47)
Net income (loss) attributable to AIG common shareholders	$	1,185	$	(183)
Denominator for EPS:
Weighted average shares outstanding — basic		980,777,243		1,156,548,459
Dilutive shares		24,537,787		-
Weighted average shares outstanding — diluted^{(a) (b)}		1,005,315,030		1,156,548,459
Income per common share attributable to AIG:
Basic:
Income (loss) from continuing operations	$	1.21	$	(0.12)
Loss from discontinued operations	$	-	$	(0.04)
Income (loss) attributable to AIG	$	1.21	$	(0.16)
Diluted:
Income (loss) from continuing operations	$	1.18	$	(0.12)
Loss from discontinued operations	$	-	$	(0.04)
Income (loss) attributable to AIG	$	1.18	$	(0.16)

(a) Shares in the diluted EPS calculation represent basic shares for the three-month period ended March 31, 2016 due to the net loss in that period.

(b) 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 1.8 million and 0.6 million for the three-month periods ended March 31, 2017 and 2016, respectively, because the effect of including those shares in the calculation would have been anti-dilutive.