Indemnity Earnings Per Share

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

Indemnity Earnings Per Share

Note 3.  Indemnity Earnings 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. See Note 17, “Indemnity Capital Stock.”

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.

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)						For the years ended December 31,
	2013					2012					2011
	Allocated net income (numerator)		Weighted shares (denominator)	Per- share amount		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	$	162	46,660,651	$	3.46	$	159	47,357,836	$	3.38	$	168	48,875,316	$	3.45
Dilutive effect of stock-based awards	0		94,306	—		0		84,397	—		0		71,721	—
Assumed conversion of Class B shares	1		6,100,800	—		1		6,105,600	—		1		6,110,400	—
Class A – Diluted EPS:
Income available to Class A stockholders on Class A equivalent shares	$	163	52,855,757	$	3.08	$	160	53,547,833	$	2.99	$	169	55,057,437	$	3.08
Class B – Basic EPS:
Income available to Class B stockholders	$	1	2,542	$	520	$	1	2,544	$	505	$	1	2,546	$	522
Class B – Diluted EPS:
Income available to Class B stockholders	$	1	2,542	$	519	$	1	2,544	$	505	$	1	2,546	$	522