EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2017

NOTE 14—EARNINGS PER SHARE

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

	Three Months Ended March 31,
	2017		2016
	(In thousands, except share and per share amounts)
Net income (loss) attributable to McDermott International, Inc.	$	21,916	$	(2,172	)

Weighted average common stock (basic)		241,829,988		239,137,912
Effect of dilutive securities:
Tangible equity units		38,000,936		-
Stock options, restricted stock and restricted stock units		2,454,671		-
Potential dilutive common stock		282,285,595		239,137,912
Net income (loss) per share attributable to McDermott International, Inc.
Basic:	$	0.09	$	(0.01	)
Diluted:	$	0.08	$	(0.01	)

Approximately 1.7 million and 2.6 million shares underlying outstanding stock-based awards were excluded from the computation of diluted earnings per share for the three months ended March 31, 2017 and 2016, respectively, because inclusion of such shares would have been antidilutive in each of those periods.

For the three months ended March 31, 2016, potentially dilutive common stock for the settlement of our common stock purchase contracts, a component of our TEUs, of 40.9 million shares were considered in the calculation of fully diluted common stock. Restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) totaling 4.8 million were also considered in the calculation of diluted weighted average shares for the three months ended March 31, 2016. However, due to our net loss position in that period, shares underlying TEUs, RSUs, and RSAs have not been reflected in the diluted earnings per share, because inclusion of those shares would have been antidilutive.

The common stock purchase contracts under the TEUs were settled on or about April 3, 2017, see Note 9, Debt.