EARNINGS PER SHARE (EPS)

9 Months Ended

Sep. 30, 2013

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

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 September 30,					Nine Months Ended September 30,
(dollars in millions, except per share data)
	2013			2012		2013		2012
Numerator for EPS:
Income from continuing operations	$	2,172		$	1,824	$	7,035	$	7,369
Less: Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–		–		208
Other		(40	)		5		12		45
Total net income (loss) from continuing operations attributable to noncontrolling interests		(40	)		5		12		253
Income attributable to AIG from continuing operations		2,212			1,819		7,023		7,116
Income (loss) attributable to AIG from discontinued operations		(42	)		37		84		280
Net income attributable to AIG	$	2,170		$	1,856	$	7,107	$	7,396
Denominator for EPS:
Weighted average shares outstanding — basic		1,475,053,126			1,642,472,814		1,476,007,034		1,757,955,937
Dilutive shares		10,269,732			29,437		5,403,839		28,217
Weighted average shares outstanding — diluted*		1,485,322,858			1,642,502,251		1,481,410,873		1,757,984,154
Income (loss) per common share attributable to AIG:
Basic:
Income from continuing operations	$	1.50		$	1.11	$	4.76	$	4.05
Income (loss) from discontinued operations	$	(0.03	)	$	0.02	$	0.06	$	0.16
Net Income attributable to AIG	$	1.47		$	1.13	$	4.82	$	4.21
Diluted:
Income from continuing operations	$	1.49		$	1.11	$	4.74	$	4.05
Income (loss) from discontinued operations	$	(0.03	)	$	0.02	$	0.06	$	0.16
Net Income attributable to AIG	$	1.46		$	1.13	$	4.80	$	4.21

*     Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, a weighted average portion of the warrants issued to AIG shareholders as part of the recapitalization in January 2011 and a weighted average portion of the warrants issued to the Department of the Treasury in 2009 that we repurchased in the first quarter of 2013. The number of shares excluded from diluted shares outstanding were 0.4 million and 51 million for the three- and nine-month periods ended September 30, 2013, respectively, and 78 million for both the three- and nine-month periods ended September 30, 2012, because the effect of including those shares in the calculation would have been anti-dilutive.