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Earnings per share
 6 Months Ended
Jun. 30, 2013
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 (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 six months ended June 30, 2013, 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.

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

 

     For the Three Months
Ended June 30,		      For the Six Months
Ended June 30,		  
     2013      2012      2013      2012  
     ($000 omitted)  

Numerator:

            

Net earnings attributable to Stewart

      26,899         24,911         30,105         12,754   

Interest expense, net of tax effects

      293         785         805         1,569   
  

 

 

     

 

 

     

 

 

     

 

 

  

If-converted net earnings attributable to Stewart

      27,192         25,696         30,910         14,323   
  

 

 

     

 

 

     

 

 

     

 

 

  

Denominator (000):

            

Basic average shares outstanding

      22,433         19,299         21,701         19,277   

Dilutive average number of shares relating to options

      150         —           —           —     

Dilutive average number of shares relating to convertible senior notes

      2,158         5,047         2,864         5,047   

Dilutive average number of shares relating to restricted shares grant

      178         42         178         43   
  

 

 

     

 

 

     

 

 

     

 

 

  

Dilutive average shares outstanding

      24,919         24,388         24,743         24,367   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic earnings per share attributable to Stewart

      1.20         1.29         1.39         0.66   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted earnings per share attributable to Stewart

      1.09         1.05         1.25         0.59