EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2016

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)	2016		2015

Net income attributable to Altisource	$	18,494	$	3,698

Weighted average common shares outstanding, basic	18,855		20,172
Dilutive effect of stock options and restricted shares	1,185		823

Weighted average common shares outstanding, diluted	20,040		20,995

Earnings per share:
Basic	$	0.98	$	0.18

Diluted	$	0.92	$	0.18

For the three months ended March 31, 2016 and 2015, 0.4 million options and 0.7 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 0.3 million options and 0.2 million options for the three months ended March 31, 2016 and 2015, 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.