Effective January 1, 2009, the Company adopted an accounting standard that stated share-based payment awards that entitle their holders to receive nonforfeitable dividends or dividend equivalents before vesting should be considered participating securities. Restricted stock awards granted prior to February 2008 are considered participating securities as they received non-forfeitable rights to dividends at the same rate as common stock. As participating securities, the Company includes these instruments in the calculation of basic EPS, and calculates basic EPS using the two-class method.

Prior to January 1, 2009, restricted stock was included in the Company's dilutive EPS calculation using the treasury stock method. The two-class method of computing EPS is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic EPS is then calculated by dividing net (loss) income available to common shareholders of Assured Guaranty by the weighted-average number of common shares outstanding during the period. Diluted EPS adjusts basic (loss) EPS for the effects of restricted stock, stock options, equity units and other potentially dilutive financial instruments ("dilutive securities"), only in the periods in which such effect is dilutive. The dilutive effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method assuming nonvested shares are not converted into common shares. With respect to the equity units (see Note 16), in computing EPS, the treasury stock method is used. Basic EPS will not be affected until the equity forwards are satisfied and the holders thereof become common stock holders. Diluted EPS is not affected unless the Company's common stock price is over $12.93 per share. The Company has a single class of common stock. There was no impact on previously reported basic and diluted EPS for year ended December 31, 2008.

		Year Ended December 31,

		2010		2009		2008
		(in millions, except per share amounts)
		(restated)		(restated)
Basic EPS:
Net income (loss) attributable to AGL		$	493.7	$	86.0	$	68.9
Less: Distributed and undistributed income (loss) available to nonvested shareholders			0.9		0.3		0.6

Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries		$	492.8	$	85.7	$	68.3

Basic shares			184.0		126.5		88.0
Basic EPS		$	2.68	$	0.68	$	0.78
Diluted EPS:
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries		$	492.8	$	85.7	$	68.3
Plus: Re-allocation of undistributed income (loss) available to nonvested shareholders of AGL and subsidiaries			—		—		—

Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries		$	492.8	$	85.7	$	68.3

Basic shares			184.0		126.5		88.0
Effect of dilutive securities:
	Options and restricted stock awards		0.9		0.6		0.4
	Equity units		4.0		2.0		—

Diluted shares			188.9		129.1		88.4

Diluted EPS		$	2.61	$	0.66	$	0.77
Potentially dilutive securities excluded from computation of EPS because of antidilutive effect			3.0		4.4		2.4