Earnings Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

EARNINGS PER SHARE

17. 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 for the years ended December 31, 2011, 2010 and 2009 are calculated as follows:

		September 30,		September 30,		September 30,
	For the Years Ended December 31,
(in thousands, except per share data)	2011		2010		2009
Net Income Attributable to Altisource	$	71,112	$	49,271	$	25,971
Weighted-Average Common Shares Outstanding,
Basic		24,373		25,083		24,062
Dilutive Effect of Stock Options		1,312		1,176		196
Dilutive Effect of Restricted Shares		—		—		3
Weighted-Average Common Shares Outstanding,
Diluted		25,685		26,259		24,261
Earnings Per Share
Basic	$	2.92	$	1.96	$	1.08
Diluted	$	2.77	$	1.88	$	1.07

A total of 0.1 million options that were anti-dilutive have been excluded from the computation of diluted EPS for each of the years ended December 31, 2011 and 2010 (negligible amount for 2009). 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 options for December 31, 2011, and 0.7 million options for each of 2010 and 2009 respectively, granted for shares that are issuable upon the achievement of certain market and performance criteria related to our stock price and an annualized rate of return to investors that have not been met at this point.