The following is a reconciliation of the calculation of basic earnings per share to diluted earnings per share for the years ended December 31:



	2014			2013		2012
Basic earnings (loss) per share:
Net income (loss) attributable to Ocwen common stockholders	$	(472,602	)	$	298,398	$	180,778

Weighted average shares of common stock	131,362,284			135,678,088		133,912,643

Basic earnings (loss) per share	$	(3.60	)	$	2.20	$	1.35

Diluted earnings (loss) per share (1):
Net income (loss) attributable to Ocwen common stockholders	$	(472,602	)	$	298,398	$	180,778
Preferred stock dividends (1) (2)	—			—		—
Interest expense on 3.25% Convertible Notes, net of income tax (3)	—			—		107
Adjusted net income (loss) attributable to Ocwen	$	(472,602	)	$	298,398	$	180,885

Weighted average shares of common stock	131,362,284			135,678,088		133,912,643
Effect of dilutive elements (1):
Preferred Shares (1) (2)	—			—		—
3.25% Convertible Notes (2)	—			—		1,008,891
Stock options	—			4,110,355		3,593,419
Common stock awards	—			12,063		6,326
Dilutive weighted average shares of common stock	131,362,284			139,800,506		138,521,279

Diluted earnings (loss) per share	$	(3.60	)	$	2.13	$	1.31

Stock options excluded from the computation of diluted earnings per share:
Anti-dilutive (3)	314,688			—		143,125
Market-based (4)	295,000			547,500		1,535,000


(1)	For 2014, we have excluded the effect of the Preferred Shares, stock options and common stock awards from the computation of diluted earnings per share because of the anti-dilutive effect of our reported net loss.

(2)

Prior to the conversion of the remaining Preferred Shares into common stock in July 2014 and the redemption of the remaining 3.25% Convertible Notes into common stock in March 2012, we computed their effect on diluted earnings per share using the if-converted method. For purposes of computing diluted earnings per share, we assumed the conversion of the Preferred Shares and the 3.25% Convertible Notes into shares of common stock unless the effect was anti-dilutive. Conversion of the Preferred Shares was not assumed for 2013 and 2012 because the effect would have been antidilutive.


(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 Ocwen’s stock price and an annualized rate of return to investors.