EARNINGS PER COMMON SHARE (EPS)

9 Months Ended

Sep. 30, 2019

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

13. Earnings Per Common 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 common 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 common share data)		2019		2018		2019		2018
Numerator for EPS:
Income (loss) from continuing operations	$	973	$	(1,220)	$	3,301	$	661
Less: Net income from continuing operations attributable to noncontrolling interests		317		-		881		5
Less: Preferred stock dividends		8		-		15		-
Income (loss) attributable to AIG common shareholders
from continuing operations		648		(1,220)		2,405		656
Loss from discontinued operations, net of income tax expense		-		(39)		(1)		(40)
Net income (loss) attributable to AIG common shareholders	$	648	$	(1,259)	$	2,404	$	616
Denominator for EPS:
Weighted average common shares outstanding — basic		877,009,495		895,237,359		876,262,372		902,081,555
Dilutive common shares		18,804,915		-		10,958,744		14,736,714
Weighted average common shares outstanding — diluted(a)(b)		895,814,410		895,237,359		887,221,116		916,818,269
Income (loss) per common share attributable to AIG common
shareholders:
Basic:
Income (loss) from continuing operations	$	0.74	$	(1.37)	$	2.74	$	0.72
Income (loss) from discontinued operations	$	-	$	(0.04)	$	-	$	(0.04)
Income (loss) attributable to AIG common shareholders	$	0.74	$	(1.41)	$	2.74	$	0.68
Diluted:
Income (loss) from continuing operations	$	0.72	$	(1.37)	$	2.71	$	0.71
Income (loss) from discontinued operations	$	-	$	(0.04)	$	-	$	(0.04)
Income (loss) attributable to AIG common shareholders	$	0.72	$	(1.41)	$	2.71	$	0.67

(a)Shares in the diluted EPS calculation represent basic common shares for the three-month period ended September 30, 2018 due to the net loss in that period. The number of common shares excluded from the calculation was 13,538,168 shares.

(b)Dilutive common 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 common shares excluded from diluted shares outstanding was 5.1 million and 24.9 million for the three- and nine-month periods ended September 30, 2019, respectively, and 5.8 million and 4.7 million for the three- and nine-month periods ended September 30, 2018, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive.