EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2013

EARNINGS PER SHARE

EARNINGS PER SHARE

20.  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)	2013		2012		2011
Net income attributable to Altisource	$	129,973	$	110,627	$	71,112
Weighted average common shares outstanding, basic	23,072		23,358		24,373
Dilutive effect of stock options	1,981		1,604		1,312
Weighted average common shares outstanding, diluted	25,053		24,962		25,685
Earnings per share:
Basic	$	5.63	$	4.74	$	2.92
Diluted	$	5.19	$	4.43	$	2.77

An immaterial amount of options for the years ended December 31, 2013 and 2012 and 0.1 million options for the year ended December 31, 2011 that were anti-dilutive have been excluded from the computation of diluted EPS.  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 0.1 million, 0.3 million and 0.3 million options for the years ended December 31, 2013, 2012 and 2011, 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 yet been met.