Allstate 2008 Annual Report Download - page 251

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The computation of basic and diluted earnings per share for the years ended December 31, is presented in
the following table.
2008 2007 2006
($ in millions, except per share data)
Numerator:
Net (loss) income $(1,679) $4,636 $4,993
Denominator:
Weighted average common shares outstanding 546.1 592.4 632.5
Effect of dilutive potential common shares:
Stock options — 3.4 4.1
Unvested restricted stock units — 0.9 0.6
Weighted average common and dilutive potential common shares outstanding 546.1 596.7 637.2
Earnings per share—Basic: $ (3.07) $ 7.83 $ 7.89
Earnings per share—Diluted: $ (3.07) $ 7.77 $ 7.84
As a result of the net loss for the year ended December 31, 2008, weighted average dilutive potential
common shares outstanding resulting from stock options of 1.3 million and unvested restricted stock units of
1.3 million were not included in the computation of diluted earnings per share since inclusion of these securities
would have an anti-dilutive effect. In the absence of the net loss, weighted average common and dilutive potential
common shares outstanding would have totaled 548.7 million for the year ended December 31, 2008.
The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive
effect on earnings per 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 27.1 million, 8.9 million and 0.4 million Allstate common shares, with exercise prices ranging
from $28.41 to $65.38, $52.23 to $65.38 and $52.23 to $62.42, were outstanding at December 31, 2008, 2007, and
2006, respectively, but were not included in the computation of diluted earnings per share in those years.
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Notes