Earnings Per Share

9 Months Ended

Sep. 30, 2020

In accordance with ASC Subtopic 260-10-45, Earnings Per Share, the Company uses the two-class method to calculate earnings per share. Basic earnings per share is calculated based on dividends declared (“distributed earnings”) and the rights of common shares and participating securities in any undistributed earnings, which represents net income remaining after deduction of dividends declared during the period. Participating securities, which include unvested restricted stock, are included in the computation of earnings per share pursuant to the two-class method. The undistributed earnings are allocated to all outstanding common shares and participating securities based on the relative percentage of each security to the total number of outstanding securities. Basic earnings per common share and participating securities represent the summation of the distributed and undistributed earnings per common share and participating security divided by the total weighted average number of common shares outstanding and the total weighted average number of participating securities outstanding during the respective periods. The Company only presents the earnings per share attributable to the common shareholders.

Net losses, after deducting the dividends to participating securities, are allocated in full to the common shares since the participating security holders do not have an obligation to share in the losses, based on the contractual rights and obligations of the participating securities. The following is a summary of the elements used in calculating basic and diluted (loss) income per share for the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
(Dollars in millions, except share and per share amounts)	2020		2019		2020		2019
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders	$	(25.1)	$	20.7	$	(77.1)	$	66.2
Dividends allocated to participating securities	—		—		—		(0.2)
Net (loss) income attributable to Kennedy-Wilson Holdings, Inc. common shareholders, net of allocation to participating securities	(25.1)		20.7		(77.1)		66.0
Dividends declared on common shares	(31.2)		(29.1)		(94.4)		(89.8)
Undistributed losses attributable to Kennedy-Wilson Holdings, Inc. common shareholders, net of allocation to participating securities	$	(56.3)	$	(8.4)	$	(171.5)	$	(23.8)

Distributed earnings per share	$	0.22	$	0.21	$	0.66	$	0.63
Undistributed losses per share	(0.40)		(0.06)		(1.21)		(0.09)
(Loss) Income per basic and diluted share	(0.18)		0.15		(0.55)		0.54

Weighted average shares outstanding for basic	140,119,442		139,947,518		140,181,438		139,669,971
Weighted average shares outstanding for diluted(1)	140,119,442		140,538,139		140,181,438		141,445,947
Dividends declared per common share	$	0.22	$	0.21	$	0.66	$	0.63

(1) For the three and nine months ended September 30, 2020, a total of 13,543,942 and 13,691,560 potentially dilutive securities, respectively, have not been included in the diluted weighted average shares as they are anti-dilutive. For the three and nine months ended September 30, 2019, a total of 1,830,940 and 1,082,604 potentially dilutive securities, respectively, have not been included in the diluted weighted average shares as they are anti-dilutive.