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Earnings Per Share
 9 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
 
White Mountains calculates earnings per share using the two-class method, which allocates earnings between common shares and unvested restricted common shares. Both classes of shares participate equally in earnings on a per share basis. Basic earnings per share amounts are based on the weighted average number of common shares outstanding adjusted for unvested restricted common shares. Diluted earnings per share amounts are also impacted by the net effect of potentially dilutive common shares outstanding. The following table outlines the Company’s computation of earnings per share from continuing operations for the three and nine months ended September 30, 2017 and 2016. See Note 15 — “Held for Sale and Discontinued Operations”.
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2017
 
2016
 
2017
 
2016
Basic and diluted earnings per share numerators (in millions):
 
 
 
 
 
 

 
 
Net income attributable to White Mountains’s common shareholders
 
$
562.1

 
$
90.8

 
$
604.7

 
$
440.7

    Less: total income from discontinued operations, net of tax
 
(539.1
)
 
(84.4
)
 
(573.2
)
 
(515.4
)
Net income (loss) from continuing operations attributable to
White Mountains’s common shareholders
 
$
23.0

 
$
6.4

 
$
31.5

 
$
(74.7
)
Allocation of earnings to participating restricted common shares(1)
 
(.3
)
 
(.1
)
 
(.4
)
 
.8

Basic and diluted earnings per share numerators
 
$
22.7

 
$
6.3

 
$
31.1

 
$
(73.9
)
Basic earnings per share denominators (in thousands):
 
 
 
 
 
 
 
 
Total average common shares outstanding during the period
 
4,297.2

 
4,867.4

 
4,477.0

 
5,166.6

Average unvested restricted common shares(2)
 
(53.7
)
 
(68.1
)
 
(54.5
)
 
(62.9
)
Basic earnings per share denominator
 
4,243.5

 
4,799.3

 
4,422.5

 
5,103.7

Diluted earnings per share denominator (in thousands):
 
 
 
 
 
 
 
 
Total average common shares outstanding during the period(3)
 
4,297.2

 
4,879.4

 
4,477.0

 
5,174.8

Average unvested restricted common shares(2)
 
(53.7
)
 
(68.1
)
 
(54.5
)
 
(62.9
)
Diluted earnings per share denominator(3)
 
4,243.5

 
4,811.3

 
4,422.5

 
5,111.9

Basic earnings per share (in dollars) - continuing operations:
 
 
 
 
 
 
 
 
Net income (loss) attributable to White Mountains’s common shareholders
 
$
5.36

 
$
1.31

 
$
7.03

 
$
(14.47
)
Dividends declared and paid
 
—

 
—

 
(1.00
)
 
(1.00
)
Undistributed earnings (loss)
 
$
5.36

 
$
1.31

 
$
6.03

 
$
(15.47
)
Diluted earnings per share (in dollars) - continuing operations:
 
 
 
 
 
 
 
 
Net income (loss) attributable to White Mountains’s common shareholders
 
$
5.36

 
$
1.31

 
$
7.03

 
$
(14.47
)
Dividends declared and paid
 
—

 
—

 
(1.00
)
 
(1.00
)
Undistributed earnings (loss)
 
$
5.36

 
$
1.31

 
$
6.03

 
$
(15.47
)

(1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities.
(2) Restricted shares outstanding vest either in equal annual installments or upon a stated date. See Note 13 — “Employee Share-Based Compensation Plans”.
(3) The diluted earnings per share denominator for the three and nine months ended September 30, 2016 includes the impact of 120,000 common shares issuable upon exercise of the non-qualified options outstanding, which resulted in 11,943 and 8,208 incremental shares outstanding over the period.









The following table summarizes the undistributed net earnings (loss) from continuing operations for the three and nine months ended September 30, 2017 and 2016. See Note 15 — “Held for Sale and Discontinued Operations”.

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
Millions
 
2017
 
2016
 
2017
 
2016
Undistributed net earnings - continuing operations:
 
 
 
 
 
 
 
 
Net income (loss) attributable to White Mountains’s common shareholders,
     net of restricted common share amounts
 
$
22.7

 
$
6.3

 
$
31.1

 
$
(73.9
)
Dividends declared net of restricted common share amounts (1)
 
—

 
—

 
(4.5
)
 
(5.9
)
Total undistributed net earnings (loss), net of restricted common
     share amounts
 
$
22.7

 
$
6.3

 
$
26.6

 
$
(79.8
)
(1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities.