Earnings per share. 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. Outstanding shares of Common Stock granted to employees that are not yet vested (restricted shares) are excluded from the calculation of the weighted-average number of shares outstanding for calculating basic EPS. To calculate diluted EPS, 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 plan. In periods of loss, dilutive shares are excluded from the calculation of the diluted EPS and diluted EPS is computed in the same manner as basic EPS.

The calculation of the basic and diluted EPS is as follows:



	Three Months Ended March 31,
	2018		2017
	($000 omitted, except per share)
Numerator:
Net (loss) income attributable to Stewart	(3,780	)	4,087

Denominator (000):
Basic average shares outstanding	23,508		23,433
Average number of dilutive shares relating to grants of restricted shares and units	—		136
Diluted average shares outstanding	23,508		23,569

Basic (loss) earnings per share attributable to Stewart	(0.16	)	0.17

Diluted (loss) earnings per share attributable to Stewart	(0.16	)	0.17