Note 6 - 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 nine and three months ended September 30, 2018 and 2017 is presented below.



	Nine Months Ended				Three Months Ended
	Sep 30, 2018		Sep 30, 2017		Sep 30, 2018		Sep 30, 2017
(Dollars in Millions)
Income from Continuing Operations	$	183.4	$	84.0	$	92.3	$	47.8
Less Income from Continuing Operations Attributed to Participating Awards	1.0		0.6		0.4		0.4
Income from Continuing Operations Attributed to Unrestricted Shares	182.4		83.4		91.9		47.4
Dilutive Effect on Income of Equity-based Compensation Equivalent Shares	—		—		—		—
Diluted Income from Continuing Operations Attributed to Unrestricted Shares	$	182.4	$	83.4	$	91.9	$	47.4
(Number of Shares in Thousands)
Weighted-average Unrestricted Shares Outstanding	55,925.7		51,308.7		64,580.4		51,366.8
Equity-based Compensation Equivalent Shares	569.8		171.6		769.1		199.6
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution	56,495.5		51,480.3		65,349.5		51,566.4
(Per Unrestricted Share in Whole Dollars)
Basic Income from Continuing Operations Per Unrestricted Share	$	3.26	$	1.63	$	1.42	$	0.92
Diluted Income from Continuing Operations Per Unrestricted Share	$	3.23	$	1.62	$	1.40	$	0.92

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 nine and three months ended September 30, 2018 and 2017, because the effect of inclusion would be anti-dilutive, is presented below.



	Nine Months Ended		Three Months Ended
(Number of Shares in Thousands)	Sep 30, 2018	Sep 30, 2017	Sep 30, 2018	Sep 30, 2017
Equity-based Compensation Equivalent Shares	293.7	459.7	47.2	382.1
Weighted-average Unrestricted Shares and Equivalent Shares Outstanding Assuming Dilution	293.7	459.7	47.2	382.1