Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2011

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Note 9. Earnings (Loss) Per Share

Basic earnings (loss) per share amounts are based on the weighted average number of common shares outstanding including unvested restricted shares that are considered participating securities.  Diluted earnings (loss) per share amounts are based on the weighted average number of common shares including unvested restricted shares and the net effect of potentially dilutive common shares outstanding.  The following table outlines the Company’s computation of earnings (loss) per share from continuing operations for the three and nine months ended September 30, 2011 and 2010 (see Note 14 for earnings per share amounts for discontinued operations):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Basic and diluted earnings per share numerators (in millions):
Net income (loss) attributable to White Mountains’ common shareholders	$	(15.8	)	$	50.7		$	(32.3	)	$	13.6
Less: net (income) loss from discontinued operations	30.1			(3.6		)	28.9			(1.2		)
Net income (loss) attributable to White Mountains’ common shareholders from continuing operations	14.3			47.1			(3.4		)	12.4
Dividends declared and paid	—			—			(8.0		)	(8.8		)
Undistributed earnings (loss)	$	14.3		$	47.1		$	(11.4	)	$	3.6
Basic earnings per share denominators (in thousands):
Average common shares outstanding during the period	7,845			8,332			7,902			8,547
Average unvested restricted shares (1)	74			99			68			97
Basic earnings (loss) per share denominator	7,919			8,431			7,970			8,644
Diluted earnings per share denominator (in thousands):
Average common shares outstanding during the period	7,845			8,332			7,902			8,547
Average unvested restricted shares (1)	74			99			68			97
Average outstanding dilutive options to acquire common shares (2)	—			—			—			1
Diluted earnings (loss) per share denominator	7,919			8,431			7,970			8,645
Basic earnings per share (in dollars):
Net income (loss) attributable to White Mountains’ common shareholders	$	1.81		$	5.58		$	(0.43	)	$	1.44
Dividends declared and paid	—			—			(1.00		)	(1.00		)
Undistributed earnings (loss) per share	$	1.81		$	5.58		$	(1.43	)	$	0.44
Diluted earnings per share (in dollars)
Net income (loss) attributable to White Mountains’ common shareholders	$	1.81		$	5.58		$	(0.43	)	$	1.44
Dividends declared and paid	—			—			(1.00		)	(1.00		)
Undistributed earnings (loss) per share	$	1.81		$	5.58		$	(1.43	)	$	0.44

(1)	Restricted shares outstanding vest either in equal annual installments or upon a stated date (see Note 12).
(2)	The diluted earnings (loss) per share denominator for the three and nine months ended September 30, 2011 and for the three months ended September 30, 2010 does not include common shares issuable upon exercise of the Non-Qualified Options as they are anti-dilutive to the calculation.