The authorized common share capital consists of an unlimited number of shares. Shares issued and outstanding changed as  follows: 1.  Net of 9,550,000 (2012 – 5,450,000) Class A shares held by the company to satisfy long-term compensation agreements 2.  Includes management share option plan and restricted stock plan  Dec. 31, 2013 Dec. 31, 2012 Outstanding at beginning of year 1 619,599,349 619,288,769 Issued (repurchased) Repurchases  (8,772,646) (2,569,272) Long-term share ownership plans 2 4,442,362 2,648,936 Dividend reinvestment plan  202,531 230,916 Outstanding at end of year 1 615,471,596 619,599,349 YEARS ENDED DECEMBER 31 (MILLIONS) 2013 2012 Net income attributable to shareholders  $ 2,120 $ 1,380 Preferred share dividends  (145) (129) Net income available to shareholders – basic  1,975 1,251 Capital securities dividends 1 13 25 Net income available for shareholders – diluted  $ 1,988 $ 1,276 i.  Earnings Per Share The components of basic and diluted earnings per share are summarized in the following table: 1.  Subject to the approval of the Toronto Stock Exchange, the Series 12 preferred shares, unless redeemed by the company for cash, are convertible into Class A shares at a  price equal to the greater of 95% at the market price at the time of conversion and C$2.00, at the option of either the company or the holder. The Series 21 preferred shares  were redeemed by the company during 2013 (MILLIONS) Dec. 31, 2013 Dec. 31, 2012 Weighted average – common shares  616.1 618.9 Dilutive effect of the conversion of options and escrowed shares using treasury stock method  12.8 12.1 Dilutive effect of the conversion of capital securities 1,2 7.9 18.0 Common shares and common share equivalents  636.8 649.0 1.  Subject to the approval of the Toronto Stock Exchange, the Series 12 preferred shares, unless redeemed by the company for cash, are convertible into Class A shares at a  price equal to the greater of 95% at the market price at the time of conversion and C$2.00, at the option of either the company or the holder. The Series 21 preferred shares  were redeemed by the company during 2013 2.  The number of shares is based on 95% of the quoted market price at year end The expense recognized for stock-based compensation is summarized in the following table: ii.  Stock-Based Compensation YEARS ENDED DECEMBER 31 (MILLIONS) 2013 2012 Expense arising from equity-settled share-based payment transactions  $ 66 $ 59 Expense arising from cash-settled share-based payment transactions  96 144 Total expense arising from share-based payment transactions  162 203 Effect of hedging program  (77) (136) Total expense included in consolidated income  $ 85 $ 67 The share-based payment plans are described below. There have been no cancellations or modifications to any of the plans  during 2013 or 2012. 1)  Equity – Settled Share-Based Awards a)  Management Share Option Plan Options issued under the company’s Management Share Option Plan (“MSOP”) vest over a period of up to five years, expire  10 years after the grant date, and are settled through issuance of Class A shares. The exercise price is equal to the market price  at the grant date.  134 BROOKFIELD ASSET MANAGEMENT 