Fifth Third Bank 2010 Annual Report Download - page 118

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
116 Fifth Third Bancorp
27. EARNINGS PER SHARE
The calculation of earnings per share and the reconciliation of earnings per share to earnings per diluted share for the years ended December 31:
2010 2009 2008
(in millions, except per share data) Income
Average
Shares
Per
Share
Amount Income
Average
Shares
Per Share
Amount Income
Average
Shares
Per Share
Amount
Earnings per share:
Net income (loss) attributable to
Bancorp $753 $737 ($2,113)
Dividends on preferred stock 250 226 67
Net income (loss) available to
common shareholders 503 511 (2,180)
Income (loss) allocated to
participating securities 3 4 (21)
Net income (loss) allocated to
common shareholders $500 791 $0.63 $507 696 $0.73 ($2,159) 553 ($3.91)
Earnings per diluted share:
Net income (loss) available to
common shareholders $503 $511 ($2,180)
Effect of dilutive securities:
Stock based awards 5- 2- - -
W
arrants related to Series F
preferred stock 3- -- - -
Series G convertible preferred
stock (a) - - - (21) 28 (0.06) - - -
Net income (loss) available to
common shareholders plus
assumed conversions 503 490 (2,180)
Income (loss) allocated to
participating securities 3 4 (21)
Net income (loss) allocated to
common shareholders $500 799 $0.63 $486 726 $0.67 ($2,159) 553 ($3.91)
(a) The additive effect to income from dividends on convertible preferred stock for the year ended December 31, 2009 included preferred dividends of $14 for Series G preferred shares,
offset by a $35 reduction to preferred dividends due to the conversion of a portion of Series G preferred shares during the second quarter of 2009.
The diluted earnings per share computation for the years ended
December 31, 2010 and 2009 excludes 23 million stock
appreciation rights, 12 million and 17 million stock options,
respectively, that had not yet been exercised, 1 million and 4
million shares, respectively, of unvested restricted stock and 36
million shares related to the Bancorp’s Series G preferred stock
that were not part of the conversion of preferred shares in the
second quarter of 2009. The shares were excluded from the
computation of net income per diluted share because their
inclusion would have been anti-dilutive to earnings per share.
For the year ended December 31, 2009, there were 44 million
shares under warrants related to the Bancorp’s Series F preferred
stock from the CPP that were excluded from the computation of
net income per diluted share, as their inclusion would have been
anti-dilutive to earnings per share due to the exercise price of the
shares being greater than the average market price of the common
shares. The warrants have an initial exercise price of $11.72 per
share.
Due to the net loss for the year ended December 31, 2008,
the diluted earnings per share calculation excluded all common
stock equivalents, including 43 million stock options and stock
appreciation rights, 6 million shares of restricted stock, 96 million
common shares from convertible preferred stock and 44 million
shares under warrants related to the CPP as their inclusion would
have been anti-dilutive to earnings per share.