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.