XML 19 R9.htm IDEA: XBRL DOCUMENT v3.4.0.3
Earnings per Common Share
 3 Months Ended
Mar. 31, 2016
Earnings Per Share [Abstract]  
Earnings per Common Share
Earnings per Common Share
Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options and unvested non-participating restricted stock units and contingently issuable performance stock awards.
The computation of basic and diluted earnings per common share is presented in the following table.
($ in millions, except per share data)
Three months ended March 31,
 
2016
 
2015
Numerator:
 

 
 

Net income
$
246

 
$
677

Less: Preferred stock dividends
29

 
29

Net income applicable to common shareholders (1)
$
217

 
$
648

 
 
 
 
Denominator:
 

 
 

Weighted average common shares outstanding
378.1

 
415.8

Effect of dilutive potential common shares:
 

 
 

Stock options
3.4

 
4.9

Restricted stock units (non-participating) and performance stock awards
1.4

 
1.9

Weighted average common and dilutive potential common shares outstanding
382.9

 
422.6

 
 
 
 
Earnings per common share - Basic
$
0.57

 
$
1.56

Earnings per common share - Diluted
$
0.57

 
$
1.53


_____________________________
(1) 
Net income applicable to common shareholders is net income less preferred stock dividends.
The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common share because their exercise prices exceed the average market price of Allstate common shares during the period or for which the unrecognized compensation cost would have an anti-dilutive effect. Options to purchase 5.0 million and 2.1 million Allstate common shares, with exercise prices ranging from $52.18 to $71.29 and $60.81 to $70.91, were outstanding for the three-month periods ended March 31, 2016 and 2015, respectively, but were not included in the computation of diluted earnings per common share in those periods.