EX-11 3 l97230aexv11.txt EXHIBIT 11 CINCINNATI FINANCIAL CORPORATION 10-Q Exhibit 11 CINCINNATI FINANCIAL CORPORATION STATEMENT RE-COMPUTATION OF PER SHARE EARNINGS
(In millions except per share and shares outstanding data) Nine months ended Three months ended September 30, September 30, -------------------------------- -------------------------------- 2002 2001 2002 2001 ---- ---- ---- ---- BASIC EARNINGS PER SHARE: Net income $ 182 $ 157 $ 72 $ 36 ============ ============ ============ ============ Average shares outstanding 161,971,032 161,022,373 161,965,384 159,277,116 ------------ ------------ ------------ ------------ Net income per common share $ 1.12 $ 0.98 $ 0.44 $ 0.23 ============ ============ ============ ============ DILUTED EARNINGS PER SHARE: Net income $ 182 $ 157 $ 72 $ 36 Interest on convertible senior debenture, net of tax 0 1 0 0 ------------ ------------ ------------ ------------ Net income for per share calculation (diluted) $ 182 $ 158 $ 72 $ 36 ============ ============ ============ ============ Average shares outstanding 163,491,420 163,296,968 163,222,154 161,846,406 Effect of dilutive securities: 5.5% convertible senior debentures 0 864,309 0 864,309 Stock options 1,520,388 1,410,286 1,256,770 1,704,981 ------------ ------------ ------------ ------------ Average shares outstanding (diluted) 165,011,808 165,571,563 164,478,924 164,415,696 ============ ============ ============ ============ Net income per common share (diluted) $ 1.11 $ 0.97 $ 0.44 $ 0.22 ============ ============ ============ ============
ANTI-DILUTIVE SECURITIES Options to purchase 631 thousand shares of the company's common stock with exercise prices ranging from $41.47 to $45.37 per share were outstanding at September 30, 2002, and 959 thousand shares with exercise prices ranging from $40.16 to $45.37 per share were outstanding at September 30, 2001. The shares were not included in the computation of diluted earnings per share for either the nine-month or three-month periods ended September 30, 2002 and 2001, since inclusion of these options would have anti-dilutive effects, as the options exercise prices exceeded the respective average market prices of the company's shares.