EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 12—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,
	2015		2014			2015			2014
	(In thousands, except share and per share amounts)
Net income (loss) attributable to McDermott International, Inc.	$	11,526	$	(7,397	)	$	(2,981	)	$	(53,917	)
Weighted average common shares (basic)		238,332,012		237,395,580			237,918,366			237,178,369
Effect of dilutive securities:
Tangible equity units		40,896,300		-			-			-
Stock options, restricted stock and restricted stock units		10,461,669		-			-			-
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted)		289,689,981		237,395,580			237,918,366			237,178,369
Basic loss per share
Net income (loss) attributable to McDermott International, Inc.	$	0.05	$	(0.03	)	$	(0.01	)	$	(0.23	)
Diluted loss per share:
Net income (loss) attributable to McDermott International, Inc.	$	0.04	$	(0.03	)	$	(0.01	)	$	(0.23	)

Approximately 3.0 million and 3.2 million shares underlying outstanding stock-based awards were excluded from the computation of diluted earnings per share because they were anti-dilutive for the three and six months ended June 30, 2015, respectively. Approximately 2.9 million and 3.0 million shares underlying outstanding stock-based awards were excluded from the computation of diluted earnings per share because they were anti-dilutive for the three and six months ended June 30, 2014, respectively.

Potential dilutive common shares for the settlement of our common stock purchase contracts, a component of our tangible equity units or “TEUs”, totaling 40.9 million shares were considered in the calculation of diluted weighted-average shares for the three months ended June 30, 2015. However, due to our net loss position for the six months ended June 30, 2015, they have not been reflected above because they were anti-dilutive. Potential dilutive common shares for the settlement of the common stock purchase contracts totaling 40.9 million and 20.4 million shares were considered in the calculation of diluted weighted-average shares for three months and six months ended June 30, 2014, respectively. However, due to our net loss position for both of those periods, they have not been reflected above because they would have been anti-dilutive.