Indemnity Earnings Per Share

6 Months Ended

Jun. 30, 2015

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 11. “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 dilutive effect of assumed issuance of stock-based awards under compensation plans using the treasury stock method.

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 June 30,
	2015					2014
	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	$	56	46,189,068	$	1.21	$	49	46,214,153	$	1.05
Dilutive effect of stock-based awards	0		272,646	—		0		96,461	—
Assumed conversion of Class B shares	0		6,100,800	—		0		6,100,800	—
Class A – Diluted EPS:
Income available to Class A stockholders on Class A equivalent shares	$	56	52,562,514	$	1.07	$	49	52,411,414	$	0.94
Class B – Basic EPS:
Income available to Class B stockholders	$	0	2,542	$	181	$	0	2,542	$	158
Class B – Diluted EPS:
Income available to Class B stockholders	$	0	2,542	$	180	$	0	2,542	$	158



	Indemnity Shareholder Interest
(dollars in millions, except per share data)	Six months ended June 30,
	2015					2014
	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	$	94	46,189,068	$	2.04	$	94	46,307,659	$	2.04
Dilutive effect of stock-based awards	0		308,765	—		0		96,461	—
Assumed conversion of Class B shares	1		6,100,800	—		1		6,100,800	—
Class A – Diluted EPS:
Income available to Class A stockholders on Class A equivalent shares	$	95	52,598,633	$	1.81	$	95	52,504,920	$	1.82
Class B – Basic EPS:
Income available to Class B stockholders	$	1	2,542	$	306	$	1	2,542	$	307
Class B – Diluted EPS:
Income available to Class B stockholders	$	1	2,542	$	305	$	1	2,542	$	307