Fifth Third Bank 2013 Annual Report Download - page 156

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
154 Fifth Third Bancorp
26. EARNINGS PER SHARE
The calculation of earnings per share and the reconciliation of earnings per share and earnings per diluted share for the years ended December 31:
2013 2012 2011
Average Per Share Average Per Share Average Per Share
(in millions, except per share data) Income Shares Amount Income Shares Amount Income Shares Amount
Earnings per share:
Net income attributable to Bancorp $ 1,836 1,576 1,297
Dividends on preferred stock 37 35 203
Net income available to common shareholders 1,799 1,541 1,094
Less: Income allocated to participating securities 14 10 6
Net income allocated to common shareholders $ 1,785 869 2.05 1,531 904 1.69 1,088 906 1.20
Earnings per diluted share:
Net income available to common shareholders $ 1,799 1,541 1,094
Effect of dilutive securities:
Stock-based awards - 8 - 6 - 6
Series G convertible preferred stock 18 18 35 36 35 36
Warrants related to Series F preferred stock - - - - - 2
Net income available to common shareholders 1,817 1,576 1,129
plus assumed conversions
Less: Income allocated to participating securities 14 10 6
Net income allocated to common shareholders
plus assumed conversions $ 1,803 895 2.02 1,566 946 1.66 1,123 950 1.18
Shares are excluded from the computation of net income per diluted
share when their inclusion has an anti-dilutive effect on earnings per
share. The diluted earnings per share computation for 2013, 2012,
and 2011 excludes 24 million, 36 million, and 29 million,
respectively, of stock appreciation rights and 1 million, 5 million,
and 8 million, respectively, of stock options because their inclusion
would have been anti-dilutive.
The diluted earnings per share computation for the year ended
December 31, 2013 excludes the impact of the forward contracts
related to the November 18, 2013 and December 13, 2013
accelerated share repurchase transactions. Based on the average
daily volume-weighted average price of the Bancorp’s common
stock during the fourth quarter of 2013, the counterparty to the
transactions would have been required to deliver approximately 5
million shares as of December 31, 2013, and thus the impact of the
two accelerated share repurchase transactions would have been anti-
dilutive to earnings per share. The diluted earnings per share
computation for the year ended December 31, 2012 excludes the
impact of the forward contracts related to the November 6, 2012
and December 14, 2012 accelerated share repurchase transactions
because, based upon the average daily volume-weighted average
price of the Bancorp’s common stock during the fourth quarter of
2012, the counterparty to the transactions would have been required
to deliver approximately 1 million shares as of December 31, 2012,
and thus the impact of the two accelerated share repurchase
transactions would have been anti-dilutive to earnings per share.