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Earnings per share
 9 Months Ended
Sep. 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 nine months ended September 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 per share calculation.

The calculations of the basic and diluted earnings per share are as follows:

 

     For the Three Months
Ended September 30,		      For the Nine Months
Ended September 30,		  
     2013      2012      2013      2012  
     ($000 omitted)  

Numerator:

            

Net earnings attributable to Stewart

      15,409         34,668         45,514         47,422   

Interest expense, net of tax effects

      303         785         1,109         2,354   
  

 

 

     

 

 

     

 

 

     

 

 

  

If-converted net earnings attributable to Stewart

      15,712         35,453         46,623         49,776   
  

 

 

     

 

 

     

 

 

     

 

 

  

Denominator (000):

            

Basic average shares outstanding

      22,475         19,309         21,962         19,288   

Dilutive average number of shares relating to options

      1         —           —           —     

Dilutive average number of shares relating to convertible senior notes

      2,115         5,047         2,595         5,047   

Dilutive average number of shares relating to restricted shares grant

      178         43         178         43   
  

 

 

     

 

 

     

 

 

     

 

 

  

Dilutive average shares outstanding

      24,769         24,399         24,735         24,378   
  

 

 

     

 

 

     

 

 

     

 

 

  

Basic earnings per share attributable to Stewart

      0.69         1.80         2.07         2.46   
  

 

 

     

 

 

     

 

 

     

 

 

  

Diluted earnings per share attributable to Stewart

      0.63         1.45         1.88         2.04