Earnings per share

6 Months Ended

Jun. 30, 2015

Earnings per share. The Company’s basic earnings per share attributable to Stewart was calculated by dividing net income (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 income and number of shares are adjusted for the effects of any dilutive shares. Using the if-converted method, net income are adjusted for interest expense, net of any tax effects, applicable to the Convertible Senior Notes, which were fully converted into common stock during October 2014. 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 long term incentive and stock option plans.

Since the Company reported a net loss for the six months ended June 30, 2014, the related diluted earnings per share was not calculated.

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,
	2015	2014	2015	2014
	($000 omitted)
Numerator:
Net income (loss) attributable to Stewart	17,106	6,279	4,658	(5,828	)
Interest expense, net of tax effects	—	314	—	—
If-converted net income (loss) attributable to Stewart	17,106	6,593	4,658	(5,828	)

Denominator (000):
Basic average shares outstanding	23,624	22,476	23,806	22,491
Dilutive average number of shares relating to options	2	1	2	—
Dilutive average number of shares relating to convertible senior notes	—	2,087	—	—
Dilutive average number of shares relating to restricted shares grant	169	284	167	—
Dilutive average shares outstanding	23,795	24,848	23,975	22,491

Basic earnings (loss) per share attributable to Stewart	0.72	0.28	0.20	(0.26	)

Diluted earnings (loss) per share attributable to Stewart	0.72	0.27	0.19	(0.26	)