Basic and Diluted Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2014

The following is a reconciliation of the calculation of basic EPS to diluted EPS for the three months ended March 31:



	2014		2013
Basic EPS:
Net income attributable to Ocwen common stockholders	$	74,849	$	42,576

Weighted average shares of common stock	135,227,067		135,638,567

Basic EPS	$	0.55	$	0.31

Diluted EPS:
Net income attributable to Ocwen common stockholders	$	74,849	$	42,576
Preferred stock dividends (1)	997		—
Adjusted net income attributable to Ocwen	$	75,846	$	42,576

Weighted average shares of common stock	135,227,067		135,638,567
Effect of dilutive elements:
Preferred Shares (1)	1,950,298		—
Stock options	3,908,333		3,902,390
Common stock awards	3,757		18,200
Dilutive weighted average shares of common stock	141,089,455		139,559,157

Diluted EPS	$	0.54	$	0.31

Stock options excluded from the computation of diluted EPS:
Market-based (2)	547,500		1,535,000


(1)	The effect of our Preferred Shares on diluted EPS is computed using the if-converted method. For purposes of computing diluted EPS, we assume the conversion of the Preferred Shares into shares of common stock unless the effect is anti-dilutive. Conversion of the Preferred Shares has not been assumed for the three months ended March 31, 2013 because the effect would have been antidilutive.


(2)	Shares that are issuable upon the achievement of certain performance criteria related to Ocwen’s stock price and an annualized rate of return to investors.