Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 14 — EARNINGS PER SHARE

Basic earnings per share ("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 all dilutive securities.

Basic and diluted EPS for the three months ended March 31, 2012 and 2011 are calculated as follows:

	Three months ended March 31,
(in thousands except per share data)	2012		2011
Net income attributable to Altisource	$	25,229	$	14,825
Weighted-average common shares outstanding, basic		23,381		24,845
Dilutive effect of stock options		1,463		1,083
Weighted-average common shares outstanding, diluted		24,844		25,928
Earnings per share
Basic	$	1.08	$	0.60
Diluted	$	1.02	$	0.57

For the three months ended March 31, 2012 and March 31, 2011, an immaterial amount of options 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 for each of the three months ended March 31, 2012 and 2011 are 0.4 million and 0.7 million options 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.