Note 5 - Income from Continuing Operations Per Unrestricted Share

Prior to January 1, 2018, the Company’s awards of restricted stock contained rights to receive non-forfeitable dividends and participate in the undistributed earnings with common shareholders. Prior to January 1, 2018 the Company’s awards of restricted stock units and deferred stock units also contained rights to receive non-forfeitable dividend equivalents and participate in the undistributed earnings with common shareholders. Accordingly, the Company is required to apply the two-class method of computing basic and diluted earnings per share. A reconciliation of the numerator and denominator used in the calculation of Basic Income from Continuing Operations Per Unrestricted Share and Diluted Income from Continuing Operations Per Unrestricted Share for the six and three months ended June 30, 2018 and 2017 is presented below.



	Six Months Ended				Three Months Ended
	Jun 30, 2018		Jun 30, 2017		Jun 30, 2018		Jun 30, 2017
(Dollars in Millions)
Income from Continuing Operations	$	91.1	$	36.2	$	37.5	$	36.6
Less Income from Continuing Operations Attributed to Participating Awards	0.6		0.2		0.1		0.3
Income from Continuing Operations Attributed to Unrestricted Shares	90.5		36.0		37.4		36.3
Dilutive Effect on Income of Equity-based Compensation Equivalent Shares	—		—		—		—
Diluted Income from Continuing Operations Attributed to Unrestricted Shares	$	90.5	$	36.0	$	37.4	$	36.3
(Number of Shares in Thousands)
Weighted-average Unrestricted Shares Outstanding	51,526.6		51,279.6		51,549.9		51,286.2
Equity-based Compensation Equivalent Shares	470.1		157.6		526.5		124.9
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution	51,996.7		51,437.2		52,076.4		51,411.1
(Per Unrestricted Share in Whole Dollars)
Basic Income from Continuing Operations Per Unrestricted Share	$	1.76	$	0.70	$	0.73	$	0.71
Diluted Income from Continuing Operations Per Unrestricted Share	$	1.75	$	0.70	$	0.73	$	0.71

The number of shares of Kemper common stock that were excluded from the calculations of Equity-based Compensation Equivalent Shares and Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution for the six and three months ended June 30, 2018 and 2017, because the effect of inclusion would be anti-dilutive, is presented below.



	Six Months Ended		Three Months Ended
(Number of Shares in Thousands)	Jun 30, 2018	Jun 30, 2017	Jun 30, 2018	Jun 30, 2017
Equity-based Compensation Equivalent Shares	416.9	498.5	504.2	584.4
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution	416.9	498.5	504.2	584.4