Earnings Per Share Basic earnings per share amounts are based on the weighted average number of common shares outstanding including unvested restricted shares that are considered participating securities. Diluted earnings per share amounts are based on the weighted average number of common shares including unvested restricted shares and the net effect of potentially dilutive common shares outstanding. The following table outlines the Company’s computation of earnings per share from continuing operations for the three and six months ended June 30, 2016 and 2015. (See Note 17 - “Discontinued Operations”). | | | | | | | | | | | | | | | | | | | Three Months Ended | Six Months Ended | | | June 30, | June 30, | | | 2016 | | 2015 | 2016 | | 2015 | Basic and diluted earnings per share numerators (in millions): | | | | | |
| | |
| Net income (loss) from continuing operations attributable to White Mountains’s common shareholders | | $ | (17.5 | ) | | $ | 4.8 |
| $ | (5.6 | ) | | $ | 17.8 |
| Allocation of income for unvested restricted common shares | | .2 |
| | (.1 | ) | .1 |
| | (.2 | ) | Dividends declared on participating restricted common shares(1) | | — |
| | — |
| (.1 | ) | | (.1 | ) | Total allocation to restricted common shares | | .2 |
| | (.1 | ) | — |
| | (.3 | ) | Net income attributable to White Mountains’s common shareholders, net of restricted common share amounts | | $ | (17.3 | ) | | $ | 4.7 |
| $ | (5.6 | ) | | $ | 17.5 |
| Undistributed net earnings (in millions): | | | | | | | | Net income attributable to White Mountains’s common shareholders, net of restricted common share amounts | | $ | (17.3 | ) | | $ | 4.7 |
| $ | (5.6 | ) | | $ | 17.5 |
| Dividends declared net of restricted common share amounts(1) | | — |
| | — |
| (5.9 | ) | | (5.9 | ) | Total undistributed net earnings, net of restricted common share amounts | | $ | (17.3 | ) | | $ | 4.7 |
| $ | (11.5 | ) | | $ | 11.6 |
| Basic earnings per share denominators (in thousands): | | | | | | | | Total average common shares outstanding during the period | | 5,096.1 |
| | 5,985.7 |
| 5,317.8 |
| | 5,982.1 |
| Average unvested restricted shares(2) | | (66.5 | ) | | (71.4 | ) | (60.2 | ) | | (65.2 | ) | Basic earnings per share denominator | | 5,029.6 |
| | 5,914.3 |
| 5,257.6 |
| | 5,916.9 |
| Diluted earnings per share denominator (in thousands): | | | | | | | | Total average common shares outstanding during the period(3) | | 5,107.0 |
| | 5,985.7 |
| 5,324.3 |
| | 5,982.1 |
| Average unvested restricted common shares(2) | | (66.5 | ) | | (71.4 | ) | (60.2 | ) | | (65.2 | ) | Diluted earnings per share denominator(3) | | 5,040.5 |
| | 5,914.3 |
| 5,264.1 |
| | 5,916.9 |
| Basic earnings per share (in dollars): | | | | | | | | Net income attributable to White Mountains’s common shareholders | | $ | (3.44 | ) | | $ | .80 |
| $ | (1.07 | ) | | $ | 2.96 |
| Dividends declared and paid | | — |
| | — |
| (1.00 | ) | | (1.00 | ) | Undistributed earnings | | $ | (3.44 | ) | | $ | .80 |
| $ | (2.07 | ) | | $ | 1.96 |
| Diluted earnings per share (in dollars): | | | | | | | | Net income attributable to White Mountains’s common shareholders | | $ | (3.43 | ) | | $ | .80 |
| $ | (1.06 | ) | | $ | 2.96 |
| Dividends declared and paid | | — |
| | — |
| (1.00 | ) | | (1.00 | ) | Undistributed earnings | | $ | (3.43 | ) | | $ | .80 |
| $ | (2.06 | ) | | $ | 1.96 |
|
(1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities. (2) Restricted shares outstanding vest either in equal annual installments or upon a stated date. (See Note 15 - “Employee Share-Based Compensation Plans”). (3) The diluted earnings per share denominator for the three and six months ended June 30, 2016 includes the impact of 120,000 common shares issuable upon exercise of the non-qualified options outstanding, which results in 10,863 and 6,194 incremental shares outstanding over the periods. |