NOTE 14—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,
	2017		2016		2017		2016
	(In thousands, except share and per share amounts)
Net income attributable to McDermott International, Inc.	$	94,701	$	16,108	$	153,030	$	34,593

Weighted average common stock (basic)		283,991,161		240,899,888		269,720,153		240,093,169
Effect of dilutive securities:
Tangible equity units⁽¹⁾		-		40,896,300		12,827,388		40,896,300
Stock options, restricted stock and restricted stock units		1,783,460		2,111,165		2,312,169		2,143,451
Potential dilutive common stock		285,774,621		283,907,353		284,859,710		283,132,920

Net income per share attributable to McDermott International, Inc.
Basic:	$	0.33	$	0.07	$	0.57	$	0.14
Diluted:	$	0.33	$	0.06	$	0.54	$	0.12

(1)	Represents weighted average TEUs outstanding for the nine months periods ended September 30, 2017.

Approximately 2 million shares underlying outstanding stock-based awards for the three and nine months ended September 30, 2017 and 2016 were excluded from the computation of diluted earnings per share during those periods because the exercise price of those awards was greater than the average market price of our common stock, and the inclusion of such shares would have been antidilutive.

The common stock purchase contracts under the TEUs were settled in April 2017, see Note 9, Debt.