EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 10—EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income attributable to McDermott International, Inc. by the weighted average number of common shares outstanding during the period. Diluted earnings per share equals net income attributable to McDermott International, Inc. divided by the weighted average common shares outstanding adjusted for the dilutive effect of our stock–based awards.

The diluted earnings per share calculation excludes 3.2 million, 1.8 million and 0.5 million shares underlying outstanding stock-based awards for the years ended December 31, 2013, 2012 and 2011, respectively, as they were antidilutive.

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

	Year Ended December 31,
	2013			2012		2011
	(In thousands, except shares and per share amounts)
Income from continuing operations less noncontrolling interest	$	(516,913	)	$	203,156	$	151,542
Income (loss) from discontinued operations, net of tax		—			3,497		(12,812	)
Net income attributable to McDermott International, Inc.	$	(516,913	)	$	206,653	$	138,730
Weighted average common shares (basic)		236,514,584			235,638,422		234,598,901
Effect of dilutive securities: Stock options, restricted stock and performance shares		—			1,981,266		2,441,606
Adjusted weighted average common shares (diluted)		236,514,584			237,619,688		237,040,507
Basic earnings per common share:
Income from continuing operations less noncontrolling interest		(2.19	)		0.86		0.65
Income (loss) from discontinued operations, net of tax		—			0.01		(0.05	)
Net income attributable to McDermott International, Inc.		(2.19	)		0.88		0.59
Diluted earnings per common share:
Income from continuing operations less noncontrolling interest		(2.19	)		0.86		0.64
Income (loss) from discontinued operations, net of tax		—			0.01		(0.05	)
Net income attributable to McDermott International, Inc.		(2.19	)		0.87		0.59