Exhibit 11
Statements Re: Computation of Per Share Earnings
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(Dollars in millions except share data) | 2004 | 2003 | 2004 | 2003 | ||||||||||||
Numerator: | ||||||||||||||||
Net income – basic and diluted | $ | 90 | $ | 104 | $ | 392 | $ | 245 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 168,152,643 | 168,454,165 | 168,242,937 | 168,779,415 | ||||||||||||
Effect of stock option shares | 1,754,752 | 1,529,133 | 1,801,003 | 1,033,099 | ||||||||||||
Adjusted weighted-average shares | 169,907,395 | 169,983,298 | 170,043,940 | 169,812,514 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.54 | $ | 0.62 | $ | 2.33 | $ | 1.45 | ||||||||
Diluted | $ | 0.53 | $ | 0.61 | $ | 2.30 | $ | 1.44 |
Anti-Dilutive Securities
Certain option shares were not included in the computation of diluted earnings per share for the three- and nine-month periods ended September 30, 2004 and 2003, since inclusion of these option shares would have anti-dilutive effects, as the options’ exercise prices exceeded the respective average market prices of the company’s shares.
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
(In millions except share data) | 2004 | 2003 | 2004 | 2003 | ||||||||||||
Number of option shares | 252,002 | 965,178 | 252,002 | 2,129,475 | ||||||||||||
Exercise price range | $ | 43.20 | $ | 37.98 to $43.21 | $ | 43.20 | $ | 35.87 to $43.21 |
Cincinnati Financial Corporation
Form 10-Q for the Quarter Ended September 30, 2004
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