Citibank 2009 Annual Report Download - page 181

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12. EARNINGS PER SHARE
The following is a reconciliation of the income and share data used in the basic and diluted earnings-per-share computations for the years ended December 31:
In millions, except per-share amounts 2009 2008 (1) 2007 (1)
Income (loss) before attribution of noncontrolling interests $ (1,066) $(32,029) $ 3,192
Noncontrolling interests 95 (343) 283
Net income (loss) from continuing operations (for EPS purposes) $ (1,161) $(31,686) $ 2,909
Income (loss) from discontinued operations, net of taxes (445) 4,002 708
Citigroup’s net income (loss) $ (1,606) $(27,684) $ 3,617
Impact of the public and private preferred stock exchange offers (3,242) — —
Preferred dividends (2,988) (1,695) (36)
Impact of the conversion price reset related to the $12.5 billion convertible preferred stock private issuance (1,285) — —
Preferred stock Series H discount accretion (123) (37) —
Net income (loss) available to common shareholders $ (9,244) $(29,416) $ 3,581
Dividends allocated to participating securities, net of forfeitures (2) (221) (261)
Net income (loss) allocated to common shareholders for basic EPS (2) $ (9,246) $(29,637) $ 3,320
Effect of dilutive securities 540 877 —
Net income (loss) allocated to common shareholders for diluted EPS (2) $ (8,706) $(28,760) $ 3,320
Weighted-average common shares outstanding applicable to basic EPS 11,568.3 5,265.4 4,905.8
Effect of dilutive securities
Convertible securities 312.2 503.2 —
Options 0.2 0.3 18.2
TDECs 218.3 — —
Adjusted weighted-average common shares outstanding applicable to diluted EPS (3) 12,099.0 5,768.9 4,924.0
Basic earnings per share (3)
Income (loss) from continuing operations $ (0.76) $ (6.39) $ 0.53
Discontinued operations (0.04) 0.76 0.15
Net income (loss) $ (0.80) $ (5.63) $ 0.68
Diluted earnings per share (3)
Income (loss) from continuing operations $ (0.76) $ (6.39) $ 0.53
Discontinued operations (0.04) 0.76 0.14
Net income (loss) $ (0.80) $ (5.63) $ 0.67
(1) The Company adopted ASC 260-10-45 to 65 (FSP EITF 03-6-1) on January 1, 2009. All prior periods have been restated to conform to the current period’s presentation.
(2) Due to the net loss available to common shareholders in 2009 and 2008, loss available to common stockholders for basic EPS was used to calculate diluted EPS. Adding back the effect of dilutive securities would
result in anti-dilution.
(3) Due to the net loss available to common shareholders in 2009 and 2008, basic shares were used to calculate diluted EPS. Adding dilutive securities to the denominator would result in anti-dilution.
During 2009, 2008 and 2007, weighted-average options to purchase
157.9 million, 156.1 million and 76.3 million shares of common stock,
respectively, were outstanding but not included in the computation of
earnings per common share, because the weighted-average exercise prices of
$28.12, $41.19 and $50.40, respectively, were greater than the average market
price of the Company’s common stock. Additionally, warrants to purchase
210,084,034 shares of common stock issued to the U.S. Treasury as part of
TARP on November 28, 2008, the warrants to purchase 188,501,414 shares of
common stock issued to the U.S. Treasury as part of TARP on December 31,
2008, and the warrants to purchase 66,531,728 shares of common stock
issued to the U.S. Treasury as consideration for the loss-sharing agreement
on January 15, 2009 were not included in the computation of earnings per
common share, because the warrants’ exercise prices were greater than the
average market price of the Company’s common stock. In addition, equity
awards granted under the Management Committee Long-Term Incentive
Plan (MC LTIP) of approximately 3 million, 8 million and 16 million in
2009, 2008 and 2007, respectively, were not included in the computation of
earnings per common share because the performance targets under the terms
of the awards were not met.