EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2015

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 September 30,				Nine months ended September 30,
(in thousands, except per share data)	2015		2014		2015		2014

Net income attributable to Altisource	$	37,046	$	42,287	$	86,694	$	136,019

Weighted average common shares outstanding, basic	19,091		21,626		19,608		22,071
Dilutive effect of stock options and restricted shares	1,320		2,014		1,080		2,081

Weighted average common shares outstanding, diluted	20,411		23,640		20,688		24,152

Earnings per share:
Basic	$	1.94	$	1.96	$	4.42	$	6.16

Diluted	$	1.82	$	1.79	$	4.19	$	5.63

For the nine months ended September 30, 2015 and 2014, 0.6 million options and less than 0.1 million options, respectively, that were anti-dilutive have been excluded from the computation of diluted EPS (0.4 million options and less than 0.1 million options for the third quarter of 2015 and 2014, respectively). These options were anti-dilutive because their exercise price was greater than the average market price of our common stock. Also excluded from the computation of diluted EPS for the nine months ended September 30, 2015 and 2014 are 0.3 million options and 0.1 million options, respectively (0.3 million options and 0.1 million options for the third quarter of 2015 and 2014, 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.