Earnings per Common Share

9 Months Ended

Sep. 30, 2021


Note 2			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, unvested

non-participating restricted stock units and contingently issuable performance stock awards. 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.


Computation of basic and diluted earnings per common share
(In millions, except per share data)	Three months ended September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Numerator:
Net income from continuing operations	$	206	$	1,216	$	4,047	$	3,159
Less: Net loss attributable to noncontrolling interest	(7)		—		(7)		—
Net income from continuing operations attributable to Allstate	213		1,216		4,054		3,159
Less: Preferred stock dividends	30		27		87		89
Net income from continuing operations applicable to common shareholders	183		1,189		3,967		3,070
Income (loss) from discontinued operations, net of tax	325		(63)		(3,272)		(207)
Net income applicable to common shareholders	$	508	$	1,126	$	695	$	2,863

Denominator:
Weighted average common shares outstanding	293.1		311.2		298.1		314.1
Effect of dilutive potential common shares:
Stock options	3.1		1.6		2.9		2.3
Restricted stock units (non-participating) and performance stock awards	1.7		1.3		1.6		1.5
Weighted average common and dilutive potential common shares outstanding	297.9		314.1		302.6		317.9

Earnings per common share applicable to common shareholders
Basic
Continuing operations	$	0.62	$	3.82	$	13.31	$	9.77
Discontinued operations	1.11		(0.20)		(10.98)		(0.66)
Total	$	1.73	$	3.62	$	2.33	$	9.11

Diluted
Continuing operations	$	0.62	$	3.78	$	13.11	$	9.66
Discontinued operations	1.09		(0.20)		(10.81)		(0.65)
Total	$	1.71	$	3.58	$	2.30	$	9.01

Anti-dilutive options excluded from diluted earnings per common share	0.6		4.2		1.3		3.0