EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2012

EARNINGS PER SHARE

NOTE 7 – EARNINGS PER SHARE

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
	(Unaudited)
	(In thousands, except share and per share amounts)
Income from continuing operations less noncontrolling interests	$	52,739	$	63,718	$	112,000	$	132,476
Income from discontinued operations, net of tax		—		3,610		3,497		5,272
Net income attributable to McDermott International, Inc.	$	52,739	$	67,328	$	115,497	$	137,748
Weighted average common shares (basic)		235,681,213		234,573,031		235,444,733		234,207,053
Effect of dilutive securities:
Stock options, restricted stock and restricted stock units(1)		1,779,552		2,971,643		1,951,964		2,938,073
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted)		237,460,765		237,544,674		237,396,697		237,145,126
Basic earnings per share:
Income from continuing operations less noncontrolling interests		0.22		0.27		0.48		0.57
Income from discontinued operations, net of tax		—		0.02		0.01		0.02
Net income attributable to McDermott International, Inc.		0.22		0.29		0.49		0.59
Diluted earnings per share:
Income from continuing operations less noncontrolling interests		0.22		0.27		0.47		0.56
Income from discontinued operations, net of tax		—		0.02		0.01		0.02
Net income attributable to McDermott International, Inc.		0.22		0.28		0.49		0.58

⁽¹⁾ Approximately 1.8 million and 3.6 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 and six-month periods ended June 30, 2012, respectively. Approximately 0.4 million shares underlying outstanding stock-based awards were excluded from the computation of diluted earnings per share for each of the three-month and six-month periods ended June 30, 2011.