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Earnings per share
 9 Months Ended
Sep. 30, 2016
Earnings Per Share [Abstract]  
Earnings per share
Earnings per share. The Company’s basic earnings per share (EPS) attributable to Stewart is calculated by dividing net income attributable to Stewart by the weighted-average number of shares of Common Stock outstanding during the reporting periods. To calculate diluted earnings per share, the number of shares is adjusted for the effects of any dilutive shares. 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 earnings per share and diluted earnings per share is computed in the same manner as basic earnings per share.



The calculation of the basic and diluted earnings per share is as follows:
 
For the Three Months Ended 
 September 30,
For the Nine Months Ended 
 September 30,
 
2016
2015
2016
2015
 
($000 omitted, except per share)
Numerator:
 
 
 
 
Net income (loss) attributable to Stewart
26,375

(13,467
)
38,778

(8,809
)
Less: Cash paid on Class B Common Shares conversion (a)
—

—

(12,000
)
—

Net income (loss) available to common shareholders
26,375

(13,467
)
26,778

(8,809
)
 
 
 
 
 
Denominator (000):
 
 
 
 
Basic average shares outstanding
23,371

23,286

23,362

23,631

Average number of dilutive shares relating to options
1

—

1

—

Average number of dilutive shares relating to grants of restricted shares
239

—

233

—

Diluted average shares outstanding
23,611

23,286

23,596

23,631

 
 
 
 
 
Basic earnings (loss) per share attributable to Stewart
1.13

(0.58
)
1.15

(0.37
)
 
 
 
 
 
Diluted earnings (loss) per share attributable to Stewart
1.12

(0.58
)
1.13

(0.37
)


(a) - In accordance with the ASC 260, Earnings Per Share, the $12.0 million payment to the holders of the Class B Common Stock shares (refer to Note 11) is treated in a manner similar to the treatment of dividends on preferred stock for the purpose of calculating EPS. Accordingly, the $12.0 million payment was deducted from the 2016 net income to arrive at net income available to common stockholders for calculating basic and diluted EPS.