Earnings Per Share

9 Months Ended

Sep. 30, 2012

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 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 and nine months ended September 30, 2012 and 2011, 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.

For the nine months ended September 30, 2011, the Company did not present diluted earnings per share using the if-converted method mentioned above since the add back of the tax affected interest expense on the convertible debt resulted in antidilution.

The calculation of the diluted earnings per share using the if-converted method is as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2012		2011		2012		2011
	($000 omitted)
Numerator:
Net earnings attributable to Stewart		34,668		4,542		47,422		189
Interest expense, net of tax effects		785		785		2,354		—
If-converted net earnings attributable to Stewart		35,453		5,327		49,776		189
Denominator (000):
Basic average shares outstanding		19,309		19,234		19,288		19,095
Dilutive average number of shares relating to convertible senior notes		5,047		5,047		5,047		—
Dilutive average number of shares relating to restricted shares grant		43		63		43		—
Dilutive average shares outstanding		24,399		24,344		24,378		19,095
Diluted earnings per share attributable to Stewart		1.45		0.22		2.04		0.01