Earnings per share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Earnings per share

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 are adjusted for interest expense, net of any tax effects, applicable to the Convertible Senior Notes discussed in Note 10. 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 years ended December 31, 2014 and 2013, dilutive shares under the treasury stock method mentioned above were immaterial. For the year ended December 31, 2012, the Company did not have any dilutive shares under the treasury stock method 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.

Calculations of basic and diluted earnings per share are as follows:

	For the Years Ended    December 31,
	2014	2013	2012
	($000 omitted)
Numerator:
Net earnings attributable to Stewart	29,753	63,026	109,182
Interest expense, net of tax effects	1,006	1,408	3,139
If-converted net earnings attributable to Stewart	30,759	64,434	112,321
Denominator (000):
Basic average shares outstanding	22,778	22,096	19,294
Dilutive average number of shares relating to options	2	—	—
Dilutive average number of shares relating to convertible senior notes	1,641	2,467	5,047
Dilutive average number of shares relating to restricted shares grant	289	178	43
Dilutive average shares outstanding	24,710	24,741	24,384
Basic earnings per share attributable to Stewart	1.31	2.85	5.66
Diluted earnings per share attributable to Stewart	1.24	2.60	4.61