EARNINGS PER SHARE (EPS)

3 Months Ended

Mar. 31, 2013

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

13. EARNINGS PER SHARE (EPS)

Basic and diluted earnings per share are based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. Diluted EPS is based on those shares used in basic EPS plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding, 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)	2013		2012
Numerator for EPS:
Income from continuing operations	$	2,138	$	3,385
Less: Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–		208
Other		25		33
Total net income from continuing operations attributable to noncontrolling interests		25		241
Income attributable to AIG from continuing operations		2,113		3,144
Income attributable to AIG from discontinued operations		93		64
Net income attributable to AIG	$	2,206	$	3,208
Denominator for EPS:
Weighted average shares outstanding — basic		1,476,471,097		1,875,972,970
Dilutive shares		207,834		29,805
Weighted average shares outstanding — diluted*		1,476,678,931		1,876,002,775
Income per common share attributable to AIG:
Basic and diluted:
Income from continuing operations	$	1.43	$	1.68
Income from discontinued operations	$	0.06	$	0.03
Net Income attributable to AIG	$	1.49	$	1.71

*     Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, and a pro-rata portion of the warrants issued to the Department of the Treasury in 2008 and 2009, all of which were purchased by AIG in the first quarter of 2013. The number of shares excluded from diluted shares outstanding was 77 million and 78 million for the three month periods ended March 31, 2013, and 2012, respectively, because the effect of including those shares, warrants, and options in the calculation would have been anti-dilutive.