EARNINGS PER COMMON SHARE (EPS)

3 Months Ended

Mar. 31, 2021

EARNINGS PER COMMON SHARE (EPS)

EARNINGS PER COMMON 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 March 31,
(dollars in millions, except per common share data)		2021		2020
Numerator for EPS:
Income from continuing operations	$	3,930	$	1,654
Less: Net income (loss) from continuing operations attributable to noncontrolling interests		54		(95)
Less: Preferred stock dividends		7		7
Income attributable to AIG common shareholders from continuing operations		3,869		1,742
Income from discontinued operations, net of income tax expense		-		-
Net income attributable to AIG common shareholders	$	3,869	$	1,742
Denominator for EPS:
Weighted average common shares outstanding - basic		868,105,069		874,213,630
Dilutive common shares		8,164,855		4,652,583
Weighted average common shares outstanding - diluted(a)		876,269,924		878,866,213
Income per common share attributable to AIG common shareholders:
Basic:
Income from continuing operations	$	4.45	$	1.99
Income from discontinued operations	$	-	$	-
Income attributable to AIG common shareholders	$	4.45	$	1.99
Diluted:
Income from continuing operations	$	4.41	$	1.98
Income from discontinued operations	$	-	$	-
Income attributable to AIG common shareholders	$	4.41	$	1.98

(a)Dilutive common shares include our share-based employee compensation plans and a weighted average portion of the 10-year warrants issued to AIG shareholders as part of AIG’s recapitalization in January 2011, which expired in January 2021. The number of common shares excluded from diluted shares outstanding was 9.2 million and 67.2 million for the three-month periods ended March 31, 2021 and 2020, respectively, because the effect of including those common shares in the calculation would have been anti-dilutive. For information about our repurchases of AIG Common Stock see Note 12 to the Condensed Consolidated Financial Statements.