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Basic and Diluted Earnings (Loss) per Share
 12 Months Ended
Dec. 31, 2015
Earnings Per Share [Abstract]  
Basic and Diluted Earnings (Loss) per Share
Note 21 — Basic and Diluted Earnings (Loss) per Share
Basic earnings per share 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 earnings per share by dividing net income attributable to Ocwen, as adjusted to add back any 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 preferred stock. The following is a reconciliation of the calculation of basic earnings per share to diluted earnings per share for the years ended December 31:
 
2015
 
2014
 
2013
Basic earnings (loss) per share:
 
 
 
 
 
Net income (loss) attributable to Ocwen common stockholders
$
(247,017
)
 
$
(472,602
)
 
$
298,398

 
 
 
 
 
 
Weighted average shares of common stock
125,315,899

 
131,362,284

 
135,678,088

 
 
 
 
 
 
Basic earnings (loss) per share
$
(1.97
)
 
$
(3.60
)
 
$
2.20

 
 
 
 
 
 
Diluted earnings (loss) per share (1):
 
 
 
 
 
Net income (loss) attributable to Ocwen common stockholders
$
(247,017
)
 
$
(472,602
)
 
$
298,398

Preferred stock dividends (2)
—

 
—

 
—

Adjusted net income (loss) attributable to Ocwen
$
(247,017
)
 
$
(472,602
)
 
$
298,398

 
 
 
 
 
 
Weighted average shares of common stock
125,315,899

 
131,362,284

 
135,678,088

Effect of dilutive elements (1):
 
 
 
 
 
Preferred stock (2)
—

 
—

 
—

Stock options
—

 
—

 
4,110,355

Common stock awards
—

 
—

 
12,063

Dilutive weighted average shares of common stock
125,315,899

 
131,362,284

 
139,800,506

 
 
 
 
 
 
Diluted earnings (loss) per share
$
(1.97
)
 
$
(3.60
)
 
$
2.13

 
 
 
 
 
 
Stock options and common stock awards excluded from the computation of diluted earnings per share:
 
 
 
 
 
Anti-dilutive (3)
2,038,588

 
314,688

 
—

Market-based (4)
924,438

 
295,000

 
547,500

 
(1)
For 2015 and 2014, we have excluded the effect of the preferred stock, 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 our remaining preferred stock into common stock in July 2014, we computed the effect on diluted earnings per share using the if-converted method. Under this method, we assumed the conversion of the preferred stock into shares of common stock unless the effect was anti-dilutive. Conversion of the preferred stock was not assumed for 2013 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.