EARNINGS PER SHARE

6 Months Ended

Jun. 30, 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:



	Three months ended June 30,				Six months ended June 30,
(in thousands, except per share data)	2016		2015		2016		2015

Net income attributable to Altisource	$	19,994	$	45,950	$	38,488	$	49,648

Weighted average common shares outstanding, basic	18,437		19,571		18,646		19,870
Dilutive effect of stock options and restricted shares	1,167		1,098		1,176		960

Weighted average common shares outstanding, diluted	19,604		20,669		19,822		20,830

Earnings per share:
Basic	$	1.08	$	2.35	$	2.06	$	2.50

Diluted	$	1.02	$	2.22	$	1.94	$	2.38

For the six months ended June 30, 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 (0.4 million options and 0.7 million options for the second quarter of 2016 and 2015, 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 0.4 million options and 0.3 million options for the six months ended June 30, 2016 and 2015, respectively (0.4 million and 0.3 million options for the second quarter of 2016 and 2015, respectively), granted for shares that begin to vest 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.