Earnings per share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings per share

Earnings per share. The Company’s basic earnings (loss) 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.

Since the Company reported a net loss for the six months ended June 30, 2014, there was no calculation of diluted earnings per share under the treasury stock method or under the if-converted method.

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,
	2014	2013	2014		2013
	($000 omitted)
Numerator:
Net earnings (loss) attributable to Stewart	6,279	26,899	(5,828	)	30,105
Interest expense, net of tax effects	314	293	—		805
If-converted net earnings (loss) attributable to Stewart	6,593	27,192	(5,828	)	30,910
Denominator (000):
Basic average shares outstanding	22,476	22,433	22,491		21,701
Dilutive average number of shares relating to options	1	150	—		—
Dilutive average number of shares relating to convertible senior notes	2,087	2,158	—		2,864
Dilutive average number of shares relating to restricted shares grant	284	178	—		178
Dilutive average shares outstanding	24,848	24,919	22,491		24,743
Basic earnings (loss) per share attributable to Stewart	0.28	1.20	(0.26	)	1.39
Diluted earnings (loss) per share attributable to Stewart	0.27	1.09	(0.26	)	1.25