EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS PER SHARE

EARNINGS PER SHARE

9.    EARNINGS PER SHARE

        The following is a reconciliation of the income and share data used in the basic and diluted earnings per share (EPS) computations for the three and six months ended June 30, 2011 and 2010:

		Three Months Ended June 30,					Six Months Ended June 30,
In millions, except per-share amounts		2011(1)		2010(1)			2011(1)		2010(1)
Income from continuing operations before attribution of noncontrolling interests		$	3,332	$	2,728		$	6,363	$	6,977
Less: Noncontrolling interests from continuing operations			62		28			134		60
Net income from continuing operations (for EPS purposes)		$	3,270	$	2,700		$	6,229	$	6,917
Income (loss) from discontinued operations, net of taxes			71		(3	)		111		208
Citigroup's net income		$	3,341	$	2,697		$	6,340	$	7,125
Less: Preferred dividends			9		—			13		—
Net income available to common shareholders		$	3,332	$	2,697		$	6,327	$	7,125
Less: Dividends and undistributed earnings allocated to employee restricted and deferred shares that contain nonforfeitable rights to dividends			62		26			96		57
Net income allocated to common shareholders for basic EPS		$	3,270	$	2,671		$	6,231	$	7,068
Add: Incremental dividends and undistributed earnings allocated to employee restricted and deferred shares that contain nonforfeitable rights to dividends			6		1			7		2
Net income allocated to common shareholders for diluted EPS		$	3,276	$	2,672		$	6,238	$	7,070
Weighted-average common shares outstanding applicable to basic EPS			2,908.6		2,884.9			2,906.5		2,864.7
Effect of dilutive securities
	TDECs		87.6		87.6			87.6		88.0
	Options		0.6		0.4			1.5		0.2
	Other employee plans		0.1		2.3			1.1		1.4
	Convertible securities		0.1		0.1			0.1		0.1
Adjusted weighted-average common shares outstanding applicable to diluted EPS			2,997.0		2,975.3			2,996.8		2,954.4
Basic earnings per share(2)
Income from continuing operations		$	1.10	$	0.93		$	2.11	$	2.40
Discontinued operations			0.02		—			0.04		0.07
Net income		$	1.12	$	0.93		$	2.14	$	2.47
Diluted earnings per share(2)
Income from continuing operations		$	1.07	$	0.90		$	2.05	$	2.32
Discontinued operations			0.02		—			0.04		0.07
Net income		$	1.09	$	0.90		$	2.08	$	2.39

(1)

All per share amounts and Citigroup shares outstanding for all periods reflect Citigroup's 1-for-10 reverse stock split, which was effective May 6, 2011.

(2)

Due to rounding, earnings per share on continuing operations and discontinued operations may not sum to earnings per share on net income.

        During the second quarters of 2011 and 2010, weighted-average options to purchase 10.8 million and 9.8 million shares of common stock, respectively, were outstanding but not included in the computation of earnings per share, because the weighted-average exercise prices of $160.86 and $283.53 respectively, were greater than the average market price of the Company's common stock.

        Warrants issued to the U.S. Treasury as part of the Troubled Asset Relief Program (TARP) and the loss-sharing agreement (all of which were subsequently sold to the public in January 2011), with exercise prices of $178.50 and $106.10 for approximately 21.0 million and 25.5 million shares of common stock, respectively, were not included in the computation of earnings per share in the second quarters of 2011 and 2010 because the exercise price was greater than the average market price of the Company's common stock.

        Equity units convertible into approximately 5.9 million shares and 17.7 million shares of Citigroup common stock held by the Abu Dhabi Investment Authority (ADIA) were not included in the computation of earnings per share in the second quarters of 2011 and 2010, respectively, because the exercise price of $318.30 was greater than the average market price of the Company's common stock.