Basic and Diluted Earnings per Share

3 Months Ended

Mar. 31, 2016

Note 15 – Basic and Diluted Earnings 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 by the weighted average number of common shares outstanding, including the potential dilutive common shares related to outstanding stock options and restricted stock awards. The following is a reconciliation of the calculation of basic earnings per share to diluted earnings per share for the three months ended March 31:



	2016			2015
Basic earnings per share:
Net income (loss) attributable to Ocwen common stockholders	$	(111,331	)	$	34,355

Weighted average shares of common stock	124,093,339			125,272,228

Basic earnings (loss) per share	$	(0.90	)	$	0.27

Diluted earnings (loss) per share (1):
Net income (loss) attributable to Ocwen common stockholders	$	(111,331	)	$	34,355

Weighted average shares of common stock	124,093,339			125,272,228
Effect of dilutive elements (1):
Stock options	—			1,725,280
Common stock awards	—			2,154
Dilutive weighted average shares of common stock	124,093,339			126,999,662

Diluted earnings (loss) per share	$	(0.90	)	$	0.27

Stock options and common stock awards excluded from the computation of diluted earnings per share:
Anti-dilutive (2)	6,985,914			2,010,902
Market-based (3)	2,080,938			851,263


(1)	For the three months ended March 31, 2016, we have excluded the effect of 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)	These stock 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.