EXHIBIT 11
CINCINNATI FINANCIAL CORPORATION
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
(000's omitted except per share data)
Nine Months Ended Three Months Ended
September 30, September 30,
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2001 2000 2001 2000
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Basic earnings per share:
Net income $157,321 $159,634 $ 35,741 $ 5,577
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Average shares outstanding 161,022 160,924 159,277 159,732
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Net income per common share $ .98 $ .99 $ .22 $ .03
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Diluted earnings per share:
Net income $157,321 $159,634 $ 35,741 $ 5,577
Interest on convertible debentures--net of tax 542 946 113 -0-
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Net income for per share calculation (diluted) $157,863 $160,580 $ 35,854 $ 5,577
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Average shares outstanding 161,022 160,924 159,277 159,732
Effective of dilutive securities:
5.5% convertible senior debentures 864 2,072 864 -0-
Stock options 1,410 1,162 1,705 1, 828
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Total dilutive shares 163,297 164,158 161,846 161,560
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Net income per common share--diluted $ .97 $ .98 $ .22 $ . 03
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ANTI-DILUTIVE SECURITIES - According to the provisions of SFAS No. 128 "Earnings
Per Share", the Company's 5.5% convertible senior debentures due 2002,
representing approximately 2,072 shares in conversion, were not included in the
computation of diluted earnings per share for the three months ended September
30, 2000 because to do so would be antidilutive.
Options to purchase 894 shares of the Company, with exercise prices ranging from
$39.88 to $45.37 per share were outstanding at September 30, 2001, and 970
shares of the Company, with exercise prices ranging from $37.88 to $45.37 per
share were outstanding at September 30, 2000, but were not included in the
computation of diluted earnings per share for the three-month periods ended
September 30, 2001, and 2000, 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. Options to purchase 959, and
1,158 shares of the Company, with exercise prices ranging from $34.50 to $45.37
per share, were outstanding at September 30, 2001, and 2000 and not included in
the nine-month period computations of diluted earnings per share due to
anti-dilutive effects.
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