EARNINGS PER SHARE

9 Months Ended

Sep. 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 September 30,					Nine Months Ended September 30,
	2015		2014			2015		2014
	(In thousands, except share and per share amounts)
Net income (loss) attributable to McDermott International, Inc.	$	3,666	$	(30,252	)	$	685	$	(84,169	)
Weighted average common shares (basic)		238,594,178		237,429,394			238,128,962		237,262,044
Effect of dilutive securities:
Tangible equity units		40,896,300		-			40,896,300		-
Stock options, restricted stock and restricted stock units		1,306,677		-			-		-
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted)		280,797,155		237,429,394			279,025,262		237,262,044
Basic loss per share
Net income (loss) attributable to McDermott International, Inc.	$	0.02	$	(0.13	)	$	-	$	(0.35	)
Diluted loss per share:
Adjusted net income (loss) attributable to McDermott International, Inc.	$	0.01	$	(0.13	)	$	-	$	(0.35	)

Approximately 2.9 million and 11.1 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 nine months ended September 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 nine months ended September 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 and nine months ended September 30, 2015. Potential dilutive common shares for the settlement of the common stock purchase contracts totaling 40.9 million and 27.3 million shares were considered in the calculation of diluted weighted-average shares for three months and nine months ended September 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.