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Note 24 BASIC AND DILUTED EARNINGS PER SHARE | 12 Months Ended
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Dec. 31, 2012
Earnings Per Share [Text Block] |
NOTE 24 | BASIC AND DILUTED EARNINGS PER SHARE
Basic EPS excludes common stock equivalents and is calculated by dividing net income attributable to Ocwen common stockholders by the weighted average number of common shares outstanding during the year. We calculate diluted EPS by dividing net income attributable to OCN, as adjusted to add back preferred stock dividends and interest expense net of income tax on the Convertible Notes, by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding stock options, restricted stock awards, the Preferred Shares and the Convertible Notes. The following is a reconciliation of the calculation of basic EPS to diluted EPS for the years ended December 31:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Basic EPS: |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Ocwen common stockholders |  | $ | 180,778 |  |  | $ | 78,331 |  |  | $ | 37,984 |
Weighted average shares of common stock |  |  | 133,912,643 |  |  |  | 104,507,055 |  |  |  | 100,273,121 |
Basic EPS |  | $ | 1.35 |  |  | $ | 0.75 |  |  | $ | 0.38 |
Diluted EPS: |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Ocwen common stockholders |  | $ | 180,778 |  |  | $ | 78,331 |  |  | $ | 37,984 |
Preferred stock dividends (1) |  |  | — |  |  |  | — |  |  |  | — |
Interest expense on Convertible Notes, net of income tax (2) |  |  | 107 |  |  |  | 1,187 |  |  |  | 1,122 |
Adjusted net income attributable to Ocwen |  | $ | 181,885 |  |  | $ | 79,518 |  |  | $ | 39,106 |
Weighted average shares of common stock |  |  | 133,912,643 |  |  |  | 104,507,055 |  |  |  | 100,273,121 |
Effect of dilutive elements: |  |  |  |  |  |  |  |  |  |  |  |
Preferred Shares (1) |  |  | — |  |  |  | — |  |  |  | — |
Convertible Notes (2) |  |  | 1,008,891 |  |  |  | 4,637,224 |  |  |  | 4,637,224 |
Stock options |  |  | 3,593,419 |  |  |  | 2,711,682 |  |  |  | 2,571,282 |
Common stock awards |  |  | 6,326 |  |  |  | — |  |  |  | 1,388 |
Dilutive weighted average shares of common stock |  |  | 138,521,279 |  |  |  | 111,855,961 |  |  |  | 107,483,015 |
Diluted EPS |  | $ | 1.31 |  |  | $ | 0.71 |  |  | $ | 0.36 |
Stock options excluded from the computation of diluted EPS: |  |  |  |  |  |  |  |  |  |  |  |
Anti-dilutive(3) |  |  | 143,125 |  |  |  | 27,031 |  |  |  | 20,000 |
Market-based(4) |  |  | 1,535,000 |  |  |  | 468,750 |  |  |  | 1,615,000 |
(1) | The effect of our Preferred Shares on diluted EPS is computed using the if-converted method. We assumed no conversion to common shares for 2012 because the effect was anti-dilutive.
(2) | Prior to the redemption of the Convertible Notes in March 2012, we also computed their effect on diluted EPS using the if-converted method. Interest expense and related amortization costs applicable to the Convertible Notes, net of income tax, were added back to net income. As disclosed in Note 15, we issued 4,635,159 shares of common stock upon conversion of $56,410 of the Convertible Notes.
(3) | These stock options were anti-dilutive because their exercise price was greater than the average market price of our stock.
(4) | Shares that are issuable upon the achievement of certain performance criteria related to OCN’s stock price and an annualized rate of return to investors. See Note 25 for additional information regarding these market-condition options.

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- Definition The entire disclosure for earnings per share. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1252-109256 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 55 -Paragraph 52 -URI http://asc.fasb.org/extlink&oid=16381557&loc=d3e4984-109258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -SubTopic 10 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1278-109256 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 225 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SX 210.5-03.21) -URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688 + Details
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