Earnings per Common Share

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings per Common Share

Note 2 Earnings per Common Share

Basic earnings per common share is computed using the weighted average number of common shares outstanding, including vested unissued participating restricted stock units. Diluted earnings per common share is computed using the weighted average number

of common and dilutive potential common shares outstanding. For the Company, dilutive potential common shares consist of outstanding stock options and unvested non-participating restricted stock units and contingently issuable performance stock awards.

Computation of basic and diluted earnings per common share
($ in millions, except per share data)	Three months ended March 31,
	2019		2018
Numerator:
Net income	$	1,292	$	1,006
Less: Preferred stock dividends	31		29
Net income applicable to common shareholders	$	1,261	$	977
Denominator:
Weighted average common shares outstanding	332.6		354.1
Effect of dilutive potential common shares:
Stock options	3.1		4.1
Restricted stock units (non-participating) and performance stock awards	1.8		1.7
Weighted average common and dilutive potential common shares outstanding	337.5		359.9
Earnings per common share - Basic	$	3.79	$	2.76
Earnings per common share - Diluted	$	3.74	$	2.71

The effect of dilutive potential common shares does not include the effect of options with an anti-dilutive effect on earnings per common 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 4.0 million and 1.0 million Allstate common shares were outstanding for the three month periods ended March 31, 2019 and 2018, respectively, but were not included in the computation of diluted earnings per common share under the treasury stock method.