EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2012

EARNINGS PER SHARE

EARNINGS PER SHARE

19.  EARNINGS PER SHARE

Basic EPS is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period.  Diluted EPS reflects the assumed conversion of dilutive securities.

Basic and diluted EPS are calculated as follows for the years ended December 31:

(in thousands, except per share data)	2012		2011		2010
Net income attributable to Altisource	$	110,627	$	71,112	$	49,390
Weighted-average common shares outstanding, basic	23,358		24,373		25,083
Dilutive effect of stock options	1,604		1,312		1,176
Weighted-average common shares outstanding, diluted	24,962		25,685		26,259
Earnings per share
Basic	$	4.74	$	2.92	$	1.96
Diluted	$	4.43	$	2.77	$	1.88

An immaterial amount of options that were anti-dilutive have been excluded from the computation of diluted EPS for the year ended December 31, 2012 (0.1 million for 2011 and 2010). These options were anti-dilutive because their exercise price was greater than the average market price of our stock. Also excluded from the computation of diluted EPS are 0.3 million, 0.3 million and 0.7 million options for the years ended December 31, 2012, 2011 and 2010, respectively, granted for shares that are issuable upon the achievement of certain market and performance criteria related to our common stock price and an annualized rate of return to investors that have not been met at this point.