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Basic and Diluted Earnings (Loss) per Share
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Basic and Diluted Earnings (Loss) per Share
Note 20 — Basic and Diluted Earnings (Loss) per Share
Basic earnings or loss per share excludes common stock equivalents and is calculated by dividing net income or net loss 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 loss per share to diluted loss per share for the years ended December 31:
 
2016
 
2015
 
2014
Basic loss per share:
 
 
 
 
 
Net loss attributable to Ocwen common stockholders
$
(199,762
)
 
$
(247,017
)
 
$
(472,602
)
 
 
 
 
 
 
Weighted average shares of common stock
123,990,700

 
125,315,899

 
131,362,284

 
 
 
 
 
 
Basic loss per share
$
(1.61
)
 
$
(1.97
)
 
$
(3.60
)
 
 
 
 
 
 
Diluted loss per share (1):
 
 
 
 
 
Net loss attributable to Ocwen common stockholders
$
(199,762
)
 
$
(247,017
)
 
$
(472,602
)
Preferred stock dividends (1) (2)
—

 
—

 
—

Adjusted net loss attributable to Ocwen
$
(199,762
)
 
$
(247,017
)
 
$
(472,602
)
 
 
 
 
 
 
Weighted average shares of common stock
123,990,700

 
125,315,899

 
131,362,284

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

 
—

 
—

Stock options
—

 
—

 
—

Common stock awards
—

 
—

 
—

Dilutive weighted average shares of common stock
123,990,700

 
125,315,899

 
131,362,284

 
 
 
 
 
 
Diluted loss per share
$
(1.61
)
 
$
(1.97
)
 
$
(3.60
)
 
 
 
 
 
 
Stock options and common stock awards excluded from the computation of diluted earnings per share:
 
 
 
 
 
Anti-dilutive (3)
7,176,089

 
2,038,588

 
314,688

Market-based (4)
795,456

 
924,438

 
295,000

 
(1)
For 2016, 2015 and 2014, we have excluded the effect of 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.
(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.