EARNINGS PER SHARE (EPS)

12 Months Ended

Dec. 31, 2018

18. 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:

Years Ended December 31,
(dollars in millions, except per share data)		2018		2017		2016
Numerator for EPS:
Income (loss) from continuing operations	$	103	$	(6,060)	$	(259)
Less: Net income from continuing operations attributable to noncontrolling interests		67		28		500
Income (loss) attributable to AIG common shareholders from continuing operations		36		(6,088)		(759)
Income (loss) from discontinued operations, net of income tax expense		(42)		4		(90)
Net loss attributable to AIG common shareholders	$	(6)	$	(6,084)	$	(849)
Denominator for EPS:
Weighted average shares outstanding — basic		898,405,537		930,561,286		1,091,085,131
Dilutive shares		11,735,705		-		-
Weighted average shares outstanding — diluted^(a)(b)		910,141,242		930,561,286		1,091,085,131
Income (loss) per common share attributable to AIG:
Basic:
Income (loss) from continuing operations	$	0.04	$	(6.54)	$	(0.70)
Loss from discontinued operations	$	(0.05)	$	-	$	(0.08)
Loss attributable to AIG	$	(0.01)	$	(6.54)	$	(0.78)
Diluted:
Income (loss) from continuing operations	$	0.04	$	(6.54)	$	(0.70)
Loss from discontinued operations	$	(0.05)	$	-	$	(0.08)
Loss attributable to AIG	$	(0.01)	$	(6.54)	$	(0.78)

(a) Shares in the diluted EPS calculation represent basic shares for 2017 and 2016 due to the net losses in those periods. The shares excluded from the calculation were 22,412,682 shares and 30,326,772 shares for the years ended December 31, 2017 and 2016, respectively.

(b) Dilutive shares included 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 were 19.6 million, 1.7 million and 0.2 million for the years ended December 31, 2018, 2017 and 2016, respectively, because the effect of including those shares in the calculation would have been anti-dilutive.