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,
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2002 2001 2002 2001
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BASIC EARNINGS PER SHARE:
Net income $ 182 $ 157 $ 72 $ 36
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Average shares outstanding 161,971,032 161,022,373 161,965,384 159,277,116
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Net income per common share $ 1.12 $ 0.98 $ 0.44 $ 0.23
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DILUTED EARNINGS PER SHARE:
Net income $ 182 $ 157 $ 72 $ 36
Interest on convertible senior debenture, net
of tax 0 1 0 0
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Net income for per share calculation (diluted) $ 182 $ 158 $ 72 $ 36
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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
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Average shares outstanding (diluted) 165,011,808 165,571,563 164,478,924 164,415,696
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Net income per common share (diluted) $ 1.11 $ 0.97 $ 0.44 $ 0.22
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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.