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Held for Sale and Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
The following table presents the undistributed net earnings (losses) from continuing operations for the three months ended September 30, 2018 and 2017. See Note 16 — “Held for Sale and Discontinued Operations”.

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
Millions
 
2018
 
2017
 
2018
 
2017
Undistributed net income (losses) - continuing operations:
 
 
 
 
 
 
 
 
Net income attributable to White Mountains’s common shareholders,
     net of restricted common share amounts
 
$
57.3

 
$
22.7

 
$
13.3

 
$
31.1

Dividends declared net of restricted common share amounts (1)
 
—

 
—

 
(3.7
)
 
(4.5
)
Total undistributed net losses, net of restricted common
     share amounts
 
$
57.3

 
$
22.7

 
$
9.6

 
$
26.6

(1) Restricted shares issued by White Mountains receive dividends, and therefore, are considered participating securities.
Net Income (Loss) from Discontinued Operations 

For the three and nine months ended September 30, 2018, White Mountains recognized net loss from sale of discontinued operations of $17.3 million and $17.2 million, which was primarily due to a tax contingency related to the sale of Sirius Group. See Note 15 — “Contingencies”.
The following table presents the results of operations, including related income taxes, associated with the business classified as discontinued operations for the three and nine months ended September 30, 2017. The amounts presented relate to OneBeacon, Sirius Group, and Tranzact. The results of discontinued operations from Sirius Group and Tranzact up to the closing date of the transaction inured to White Mountains. Given the fixed price nature of the OneBeacon Transaction, OneBeacon’s results were economically transferred to the buyer at signing.
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30, 2017
 
September 30, 2017
Millions
 
OneBeacon
 
Sirius Group
 
Total
 
OneBeacon
 
Sirius Group
 
Tranzact
 
Total
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earned insurance premiums
 
$
268.4

 
$
—

 
$
268.4

 
$
807.6

 
$
—

 
$
—

 
$
807.6

Net investment income
 
13.0

 
—

 
13.0

 
39.7

 
—

 
—

 
39.7

Net realized and unrealized gains
 
11.5

 
—

 
11.5

 
38.8

 
—

 
—

 
38.8

Other revenue
 
2.2

 
—

 
2.2

 
7.7

 
—

 
—

 
7.7

Total revenues
 
295.1

 
—

 
295.1

 
893.8

 
—

 
—

 
893.8

Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss and loss adjustment expenses
 
206.8

 
—

 
206.8

 
546.0

 
—

 
—

 
546.0

Insurance and reinsurance acquisition expenses
 
51.9

 
—

 
51.9

 
145.6

 
—

 
—

 
145.6

Other underwriting expenses
 
44.9

 
—

 
44.9

 
156.2

 
—

 
—

 
156.2

General and administrative expenses
 
7.4

 
—

 
7.4

 
21.2

 
—

 
—

 
21.2

Interest expense
 
3.4

 
—

 
3.4

 
10.0

 
—

 
—

 
10.0

Total expenses
 
314.4

 
—

 
314.4

 
879.0

 
—

 
—

 
879.0

Pre-tax (loss) income
 
(19.3
)
 
—

 
(19.3
)
 
14.8

 
—

 
—

 
14.8

Income tax benefit
 
4.1

 
—

 
4.1

 
5.7

 
—

 
—

 
5.7

Net (loss) income from
   discontinued operations
 
(15.2
)
 
—

 
(15.2
)
 
20.5

 
—

 
—

 
20.5

Net gain (loss) from sale of
   discontinued operations
 
554.5

 
(.2
)
 
554.3

 
554.5

 
(.8
)
 
(1.0
)
 
552.7

Total income (loss) from
   discontinued operations
 
539.3

 
(.2
)
 
539.1

 
575.0

 
(.8
)
 
(1.0
)
 
573.2

Change in foreign currency translation and
   other from discontinued operations
 
.1

 
—

 
.1

 
.3

 
—

 
—

 
.3

Recognition of benefit plan assets and
   obligations from the sale of OneBeacon,
   net of tax
 
2.9

 
—

 
2.9

 
2.9

 
—

 
—

 
2.9

Comprehensive income (loss)
   from discontinued operations
 
$
542.3

 
$
(.2
)
 
$
542.1

 
$
578.2

 
$
(.8
)
 
$
(1.0
)
 
$
576.4


Net Change in Cash from Discontinued Operations

The following table presents the net change in cash, including income tax payments to national governments and interest paid associated with the business classified as discontinued operations:
 
 
Nine Months Ended
 
 
September 30,
Millions
 
2018
 
2017
Net cash provided from (used for) operations
 
$
—

 
$
157.0

Net cash (used for) provided from investing activities
 
—

 
3.0

Net cash used for financing activities
 
—

 
(61.9
)
Net change in cash during the period
 
—

 
98.1

Cash balances at beginning of period
 
—

 
70.5

Net change in cash held for sale, excluding discontinued operations
 
—

 
(.9
)
Cash sold as part of sale of consolidated subsidiaries
 
—

 
167.7

Cash balances at end of period
 
$
—

 
$
—

Supplemental cash flows information:
 
 
 
 
Interest paid
 
$
—

 
$
—

Net income tax payment to national governments
 
$
—

 
$
—


Earnings Per Share from Discontinued Operations

White Mountains calculates earnings per share using the two-class method, which allocates earnings between common and unvested restricted common shares. Both classes of shares participate equally in earnings on a per share basis. Basic earnings per share amounts are based on the weighted average number of common shares outstanding adjusted for unvested restricted common shares. Diluted earnings per share amounts are also impacted by the net effect of potentially dilutive common shares outstanding.
The following table presents the Company’s computation of earnings per share for discontinued operations for the three and nine months ended September 30, 2018 and 2017:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017
 
2018
 
2017
Basic and diluted earnings per share numerators (in millions):
 
 
 
 
 
 
 
 
Net income (loss) attributable to White Mountains’s
   common shareholders
 
$
40.8

 
$
562.1

 
$
(3.7
)
 
$
604.7

Less total loss from continuing operations, net of tax
 
58.1

 
23.0

 
13.5

 
31.5

Net income from discontinued operations attributable to
   White Mountains’s common shareholders
 
$
(17.3
)
 
$
539.1

 
$
(17.2
)
 
$
573.2

Allocation of earnings to participating restricted common shares (1)
 
.2

 
(6.7
)
 
.2

 
(7.0
)
Basic and diluted earnings per share numerators
 
$
(17.1
)
 
$
532.4

 
$
(17.0
)
 
$
566.2

Basic earnings per share denominators (in thousands):
 
 
 
 
 
 
 
 

Total average common shares outstanding during the period
 
3,180.4

 
4,297.2

 
3,450.8

 
4,477.0

Average unvested restricted common shares (3)
 
(41.5
)
 
(53.7
)
 
(39.7
)
 
(54.5
)
Basic earnings per share denominator
 
3,138.9

 
4,243.5

 
3,411.1

 
4,422.5

Diluted earnings per share denominator (in thousands):
 
 
 
 
 
 
 
 

Total average common shares outstanding during the period
 
3,180.4

 
4,297.2

 
3,450.8

 
4,477.0

Average unvested restricted common shares (3)
 
(41.5
)
 
(53.7
)
 
(39.7
)
 
(54.5
)
Diluted earnings per share denominator
 
3,138.9

 
4,243.5

 
3,411.1

 
4,422.5

Basic and diluted earnings per share (in dollars) -
   discontinued operations:
 
$
(5.44
)
 
$
125.45

 
$
(4.98
)
 
$
128.03

(1) Restricted shares issued by White Mountains contain dividend participation features, and therefore, are considered participating securities.
(2) Net earnings attributable to White Mountains’s common shareholders, net of restricted share amounts, is equal to undistributed earnings for the three and nine months ended September 30, 2018 and 2017.
(3) Restricted common shares outstanding vest either in equal annual installments or upon a stated date. See Note 10 — “Employee Share-Based Incentive Compensation Plans”.