Earnings per share

12 Months Ended

Dec. 31, 2015

Earnings per share. The Company’s basic (loss) earnings per share attributable to Stewart is calculated by dividing net (loss) income attributable to Stewart by the weighted-average number of shares of Common Stock and Class B Common Stock outstanding during the reporting periods.

To calculate diluted earnings per share, net income and number of shares are adjusted for the effects of any dilutive shares. Using the if-converted method, net income is adjusted for interest expense, net of any tax effects, applicable to the Convertible Senior Notes, which were fully converted into common stock during October 2014. The number of shares is adjusted by adding the number of dilutive shares, assuming they are issued, during the same reporting period. The treasury stock method is used to calculate the dilutive number of shares related to the Company’s long term incentive and stock option plans. In periods of loss, dilutive shares are excluded from the calculation of the diluted loss per share and diluted loss per share is computed in the same manner as basic loss per share.

The calculation of the basic and diluted (loss) earnings per share is as follows:



	For the Years Ended December 31,
	2015		2014	2013
	($000 omitted)
Numerator:
Net (loss) income attributable to Stewart	(6,204	)	29,753	63,026
Interest expense, net of tax effects	—		1,006	1,408
If-converted net (loss) income attributable to Stewart	(6,204	)	30,759	64,434
Denominator (000):
Basic average shares outstanding	23,544		22,778	22,096
Average number of dilutive shares relating to options	—		2	—
Average number of dilutive shares relating to convertible senior notes	—		1,641	2,467
Average number of dilutive shares relating to restricted shares grant	—		289	178
Diluted average shares outstanding	23,544		24,710	24,741
Basic (loss) earnings per share attributable to Stewart	(0.26	)	1.31	2.85
Diluted (loss) earnings per share attributable to Stewart	(0.26	)	1.24	2.60