EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2016

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,
	2016		2015		2016		2015
	(In thousands, except share and per share amounts)
Net income (loss) attributable to McDermott International, Inc.	$	20,657	$	11,526	$	18,485	$	(2,981	)

Weighted average common shares (basic)		240,338,540		238,332,012		239,739,204		237,918,366
Effect of dilutive securities:
Tangible equity units		40,896,300		40,896,300		40,896,300		-
Stock options, restricted stock and restricted stock units		3,674,574		10,461,669		2,496,734		-
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted)		284,909,414		289,689,981		283,132,238		237,918,366

Income (loss) per share
Net income (loss) attributable to McDermott International, Inc.
Basic:		0.09		0.05		0.08		(0.01	)
Diluted:		0.07		0.04		0.07		(0.01	)

Approximately 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, 2016. Approximately 3 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.

Potential dilutive common shares for the settlement of the common stock purchase contracts totaling 40.9 million shares were considered in the calculation of diluted weighted-average shares for the six months ended June 30, 2015, however, due to our net loss position in that period, they have not been reflected above because they would be anti-dilutive.