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Basic and Diluted Earnings per Share
 3 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Basic and Diluted Earnings per Share
Note 17 — 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 Ocwen, as adjusted to add back preferred stock dividends, by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding stock options, restricted stock awards and the Preferred Shares.
The following is a reconciliation of the calculation of basic EPS to diluted EPS for the three months ended March 31:
 
2014
 
2013
 
(As Restated)

 
(As Restated)

Basic EPS:
 
 
 
Net income attributable to Ocwen common stockholders
$
59,504

 
$
46,338

 
 
 
 
Weighted average shares of common stock
135,227,067

 
135,638,567

 
 
 
 
Basic EPS
$
0.44

 
$
0.34

 
 
 
 
Diluted EPS:
 
 
 
Net income attributable to Ocwen common stockholders
$
59,504

 
$
46,338

Preferred stock dividends (1)
997

 
—

Adjusted net income attributable to Ocwen
$
60,501

 
$
46,338

 
 
 
 
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
$
0.43

 
$
0.33

 
 
 
 
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.