Indemnity Earnings Per Share

9 Months Ended

Sep. 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 September 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	$	50	46,189,068	$	1.06	$	47	46,189,068	$	1.01
Dilutive effect of stock-based awards	0		312,215	—		0		97,296	—
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	$	50	52,602,083	$	0.94	$	47	52,387,164	$	0.90
Class B – Basic EPS:
Income available to Class B stockholders	$	1	2,542	$	160	$	0	2,542	$	151
Class B – Diluted EPS:
Income available to Class B stockholders	$	1	2,542	$	159	$	0	2,542	$	151



	Indemnity Shareholder Interest
(dollars in millions, except per share data)	Nine months ended September 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	$	144	46,189,068	$	3.10	$	141	46,267,694	$	3.05
Dilutive effect of stock-based awards	0		309,915	—		0		97,296	—
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	$	145	52,599,783	$	2.75	$	142	52,465,790	$	2.71
Class B – Basic EPS:
Income available to Class B stockholders	$	1	2,542	$	466	$	1	2,542	$	458
Class B – Diluted EPS:
Income available to Class B stockholders	$	1	2,542	$	465	$	1	2,542	$	457