AIG 2011 Annual Report Download - page 351

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents the computation of basic and diluted EPS:
Years Ended December 31,
(dollars in millions, except per share data) 2011 2010 2009
Numerator for EPS:
Income (loss) from continuing operations $ 16,971 $ 12,077 $ (12,818)
Net income (loss) from continuing operations attributable to
noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests 634 1,818 140
Other 55 355 (1,576)
Total net income (loss) from continuing operations attributable to
noncontrolling interests 689 2,173 (1,436)
Net income (loss) attributable to AIG from continuing operations 16,282 9,904 (11,382)
Income (loss) from discontinued operations $ 1,535 $ (2,064) $ 505
Net income from discontinued operations attributable to noncontrolling
interests 19 54 72
Net income (loss) attributable to AIG from discontinued operations 1,516 (2,118) 433
Cumulative dividends on AIG Series D Fixed Rate Cumulative
Perpetual Preferred Stock, par value $5.00 per share -- (1,204)
Deemed dividend to AIG Series D Preferred Stock exchanged for the
Series E Preferred Stock -- (91)
Deemed dividends to AIG Series E and F Preferred Stock (812) --
(Income) loss allocated to the Series C Preferred Stock – continuing
operations -(7,890) -
Net income (loss) attributable to AIG common shareholders from
continuing operations, applicable to common stock for EPS 15,470 2,014 (12,677)
(Income) loss allocated to the Series C Preferred Stock – discontinued
operations -1,687 -
Net income (loss) attributable to AIG common shareholders from
discontinued operations, applicable to common stock for EPS $ 1,516 $ (431) $ 433
Denominator for EPS:
Weighted average shares outstanding – basic 1,799,385,757 136,585,844 135,324,896
Dilutive shares 72,740 63,436 -
Weighted average shares outstanding – diluted* 1,799,458,497 136,649,280 135,324,896
EPS attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations $ 8.60 $ 14.75 $ (93.69)
Income (loss) from discontinued operations $ 0.84 $ (3.15) $ 3.21
Diluted:
Income (loss) from continuing operations $ 8.60 $ 14.75 $ (93.69)
Income (loss) from discontinued operations $ 0.84 $ (3.15) $ 3.21
* Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, and
the warrants issued to the Department of the Treasury in 2009, and warrants issued to the shareholders in January 2011. The number of shares
excluded from diluted shares outstanding were 76 million, 11 million and 12 million for the years ended December 31, 2011, 2010 and 2009,
respectively, because the effect would have been anti-dilutive.
Deemed dividends represent the excess of (i) the fair value of the consideration transferred to the Department
of the Treasury, which consists of 1,092,169,866 shares of AIG Common Stock, $20.2 billion of redeemable SPV
Preferred Interests, and a liability for a commitment by AIG to pay the Department of the Treasury’s costs to
dispose of all of its shares, over (ii) the carrying value of the Series E and F Preferred Stock. The fair value of the
AIG 2011 Form 10-K 337