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:



	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2017		2016		2017		2016

Net income attributable to Altisource	$	9,035	$	19,994	$	15,580	$	38,488

Weighted average common shares outstanding, basic	18,335		18,437		18,497		18,646
Dilutive effect of stock options and restricted shares	501		1,167		572		1,176

Weighted average common shares outstanding, diluted	18,836		19,604		19,069		19,822

Earnings per share:
Basic	$	0.49	$	1.08	$	0.84	$	2.06

Diluted	$	0.48	$	1.02	$	0.82	$	1.94

For the six months ended June 30, 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 (0.4 million options and 0.4 million options for the second quarter of 2017 and 2016, respectively). 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 0.3 million options and restricted shares and 0.4 million options for the six months ended June 30, 2017 and 2016, respectively (0.3 million options and restricted shares and 0.4 million options for the second quarter of 2017 and 2016, respectively), which 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.