EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2012

Computation of Basic and Diluted Earnings Per Common Share

The following table sets forth the computation of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2012		2011
	(Unaudited)
	(In thousands, except share and per share amounts)
Basic:
Income from continuing operations less noncontrolling interests	$	59,261	$	68,758
Income from discontinued operations, net of tax		3,497		1,662
Net income attributable to McDermott International, Inc.	$	62,758	$	70,420
Diluted:
Weighted average common shares (basic)		235,208,252		233,841,075
Effect of dilutive securities:
Stock options, restricted stock and restricted stock units(1)		2,124,375		2,904,503
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted)		237,332,627		236,745,578
Basic earnings per share:
Income from continuing operations less noncontrolling interests		0.25		0.29
Income from discontinued operations, net of tax		0.01		0.01
Net income attributable to McDermott International, Inc.		0.27		0.30
Diluted earnings per share:
Income from continuing operations less noncontrolling interests		0.25		0.29
Income from discontinued operations, net of tax		0.01		0.01
Net income attributable to McDermott International, Inc.		0.26		0.30

⁽¹⁾  Approximately 1.8 million and 0.4 million shares underlying outstanding stock-based awards were excluded from the computation of diluted earnings per share because they were antidilutive for the three-month periods ended March 31, 2012 and 2011, respectively.