Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

Earnings per share

NOTE 6

Earnings per share. The Company’s basic earnings per share attributable to Stewart was calculated by dividing net earnings (loss) 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 earnings and number of shares are adjusted for the effects of any dilutive shares. Using the if-converted method, net earnings is adjusted for interest expense, net of any tax effects, applicable to the convertible senior notes. 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 stock option plan.

For the three months ended June 30, 2011 and 2010, the Company did not have any dilutive shares under the treasury stock method mentioned above since the exercise prices of the options were greater than the weighted-average market value of the shares, which excludes them from the diluted earnings calculation.

Also, since the Company reported a net loss after adjustments related to the if-converted method for the six months ended June 30, 2011 and 2010, there were no calculations of diluted per share amounts for these periods.

The calculation of the diluted earnings per share using the if-converted method is as follows for the three months ended June 30, 2011 and June 30, 2010:

	For the Three Months Ended
	June 30,
	2011		2010
	($000 omitted, except per
	share)
Numerator:
Net earnings attributable to Stewart		5,940		9,428
Interest expense, net of tax effects		785		785
If-converted net earnings attributable to Stewart		6,725		10,213
Denominator (000):
Basic average shares outstanding		19,216		18,320
Dilutive average number of shares relating to convertible senior notes		5,047		4,600
Dilutive average number of shares relating to restricted shares grant		63		37
Dilutive average shares outstanding		24,326		22,957
Diluted earnings per share attributable to Stewart		0.28		0.45