XML 111 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Basic and Diluted Earnings per Share
 6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Basic and Diluted Earnings per Share
Note 16 – 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 and six months ended June 30:
 
Three Months
 
Six Months
 
2014
 
2013
 
2014
 
2013
Basic EPS:
 
 
 
 
 
 
 
Net income attributable to Ocwen common stockholders
$
65,958

 
$
63,057

 
$
125,462

 
$
109,395

 
 
 
 
 
 
 
 
Weighted average shares of common stock
134,221,668

 
135,690,264

 
134,724,905

 
135,664,242

 
 
 
 
 
 
 
 
Basic EPS
$
0.49

 
$
0.46

 
$
0.93

 
$
0.81

 
 
 
 
 
 
 
 
Diluted EPS:
 
 
 
 
 
 
 
Net income attributable to Ocwen common stockholders
$
65,958

 
$
63,057

 
$
125,462

 
$
109,395

Preferred stock dividends (1)
—

 
2,605

 
—

 
—

Adjusted net income attributable to Ocwen
$
65,958

 
$
65,662

 
$
125,462

 
$
109,395

 
 
 
 
 
 
 
 
Weighted average shares of common stock
134,221,668

 
135,690,264

 
134,724,905

 
135,664,242

Effect of dilutive elements:
 
 
 
 
 
 
 
Preferred Shares (1)
—

 
5,095,942

 
—

 
—

Stock options
3,479,499

 
3,924,536

 
3,693,916

 
3,913,463

Common stock awards
4,626

 
10,305

 
4,191

 
14,253

Dilutive weighted average shares of common stock
137,705,793

 
144,721,047

 
138,423,012

 
139,591,958

 
 
 
 
 
 
 
 
Diluted EPS
$
0.48

 
$
0.45

 
$
0.91

 
$
0.78

 
 
 
 
 
 
 
 
Stock options excluded from the computation of diluted EPS:
 
 
 
 
 
 
 
Anti-dilutive (2)
50,000

 
—

 
25,000

 
—

Market-based (3)
272,500

 
1,530,000

 
272,500

 
1,530,000

 
(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 and six months ended June 30, 2014 and for the six months ended June 30, 2013 because the effect would have been antidilutive.
(2)
These options were anti-dilutive because their exercise price was greater than the average market price of our stock.
(3)
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.