Indemnity Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Indemnity Earnings Per Share

Note 3.  IndemnityEarnings Per Share

Class A and Class B basic earnings per share and Class B diluted earnings per share are calculated under the two-class method. The two-class method allocates earnings to each class of stock based upon its dividend rights.  Class B shares are convertible into Class A shares at a conversion ratio of 2,400 to 1.

Class A diluted earnings per share are calculated under the if-converted method, which reflects the conversion of Class B shares to Class A shares. Diluted earnings per share calculations include the effect of any potential common shares. Potential common shares include outstanding vested and not yet vested awards related to our outside directors’ stock compensation plan and any employee stock based awards.

In the first quarter of 2012, two shares of Class B common stock were converted into 4,800 shares of Class A common stock.  See Note 11. “Indemnity Capital Stock”.

A reconciliation of the numerators and denominators used in the basic and diluted per-share computations is presented as follows for each class of Indemnity common stock:

	Indemnity Shareholder Interest
(dollars in millions, except per share data)	Three months ended March 31,
	2013					2012
	Allocated net income (numerator)		Weighted shares (denominator)	Per-share amount		Allocated net income (numerator)		Weighted shares (denominator)	Per- share amount
Class A – Basic EPS:
Income available to Class A stockholders	$	36	46,774,968	$	0.78	$	36	47,749,799	$	0.76
Dilutive effect of stock-based awards	0		84,397	—		0		72,245	—
Assumed conversion of Class B shares	1		6,100,800	—		0		6,108,000	—
Class A – Diluted EPS:
Income available to Class A stockholders on Class A equivalent shares	$	37	52,960,165	$	0.69	$	36	53,930,044	$	0.67
Class B – Basic and diluted EPS:
Income available to Class B stockholders	$	0	2,542	$	117	$	0	2,545	$	114