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EARNINGS PER SHARE
3 Months Ended
Mar. 31, 2017
Earnings Per Share [Abstract]  
EARNINGS PER SHARE
EARNINGS PER SHARE
Basic earnings per share (“EPS”) is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities using the treasury stock method.
Basic and diluted EPS are calculated as follows for the three months ended March 31:
(in thousands, except per share data)
 
2017
 
2016
 
 
 
 
 
Net income attributable to Altisource
 
$
6,545

 
$
18,494

 
 
 
 
 
Weighted average common shares outstanding, basic
 
18,662

 
18,855

Dilutive effect of stock options and restricted shares
 
642

 
1,185

 
 
 
 
 
Weighted average common shares outstanding, diluted
 
19,304

 
20,040

 
 
 
 
 
Earnings per share:
 
 
 
 
Basic
 
$
0.35

 
$
0.98

 
 
 
 
 
Diluted
 
$
0.34

 
$
0.92


For the three months ended March 31, 2017 and 2016, 0.4 million options and 0.4 million options, respectively, that were anti-dilutive have been excluded from the computation of diluted EPS. These options were anti-dilutive and excluded from the computation of diluted EPS because their exercise price was greater than the average market price of our common stock. Also excluded from the computation of diluted EPS are 0.2 million options and 0.3 million options for the three months ended March 31, 2017 and 2016, respectively, granted for shares that begin to vest upon the achievement of certain market criteria related to our common stock price, performance criteria and an annualized rate of return to shareholders that have not yet been met.