Note 16 – 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 loss attributable to Ocwen common stockholders by the weighted average number of common shares outstanding during the period. We calculate diluted earnings or loss per share by dividing net income or loss 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. For the three months ended March 31, 2017, we have excluded the effect of all stock options and common stock awards from the computation of diluted loss per share because of the anti-dilutive effect of our reported net loss.



	Three Months Ended March 31,
	2018		2017
Basic income (loss) per share
Net income (loss) attributable to Ocwen stockholders	$	2,548	$	(32,724	)

Weighted average shares of common stock	133,121,465		124,014,928

Basic earnings (loss) per share	$	0.02	$	(0.26	)

Diluted earnings (loss) per share
Net income (loss) attributable to Ocwen stockholders	$	2,548	$	(32,724	)

Weighted average shares of common stock	133,121,465		124,014,928
Effect of dilutive elements
Stock option awards	—		—
Common stock awards	1,485,464		—
Dilutive weighted average shares of common stock	134,606,929		124,014,928

Diluted earnings (loss) per share	$	0.02	$	(0.26	)

Stock options and common stock awards excluded from the computation of diluted earnings per share
Anti-dilutive (1)	6,503,348		2,056,215
Market-based (2)	817,446		782,446


(1)	Stock options were anti-dilutive because their exercise price was greater than the average market price of Ocwen’s stock.


(2)	Shares that are issuable upon the achievement of certain market-based performance criteria related to Ocwen’s stock price.