EARNINGS PER COMMON SHARE (EPS)

6 Months Ended

Jun. 30, 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				Six Months Ended
	June 30,				June 30,
(dollars in millions, except per common share data)		2021		2020		2021		2020
Numerator for EPS:
Income (loss) from continuing operations	$	150	$	(7,765)	$	4,080	$	(6,111)
Less: Net income from continuing operations
attributable to noncontrolling interests		51		162		105		67
Less: Preferred stock dividends		8		8		15		15
Income (loss) attributable to AIG common shareholders
from continuing operations		91		(7,935)		3,960		(6,193)
Loss from discontinued operations, net of income tax expense		-		(1)		-		(1)
Net income (loss) attributable to AIG common shareholders	$	91	$	(7,936)	$	3,960	$	(6,194)
Denominator for EPS:
Weighted average common shares outstanding — basic		862,930,931		866,968,305		865,508,343		870,590,968
Dilutive common shares		9,946,372		-		9,057,937		-
Weighted average common shares outstanding — diluted(a)(b)		872,877,303		866,968,305		874,566,280		870,590,968
Income (loss) per common share attributable to AIG common
shareholders:
Basic:
Income (loss) from continuing operations	$	0.11	$	(9.15)	$	4.58	$	(7.11)
Income (loss) from discontinued operations	$	-	$	-	$	-	$	-
Income (loss) attributable to AIG common shareholders	$	0.11	$	(9.15)	$	4.58	$	(7.11)
Diluted:
Income (loss) from continuing operations	$	0.11	$	(9.15)	$	4.53	$	(7.11)
Income (loss) from discontinued operations	$	-	$	-	$	-	$	-
Income (loss) attributable to AIG common shareholders	$	0.11	$	(9.15)	$	4.53	$	(7.11)

(a) For the three- and six-month periods ended June 30, 2020, because we reported net losses attributable to AIG common shareholders, all common stock equivalents are anti-dilutive and are therefore excluded from the calculation of diluted shares and diluted per share amounts. The number of common shares excluded from the calculation was 3,226,882 shares and 3,939,732 shares, respectively, for the three- and six-month periods ended June 30, 2020.

(b) 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 5.5 million and 7.4 million for the three- and six-month periods ended June 30, 2021, respectively, and 68.6 million and 67.9 million for the three- and six-month periods ended June 30, 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.