NOTE 19—EARNINGS PER SHARE

On May 2, 2018, stockholders of McDermott approved an amendment to McDermott’s Amended and Restated Articles of Incorporation to effect a three-to-one reverse stock split of McDermott shares of common stock (par value of $1.00 per share), which became effective May 9, 2018. All comparable periods presented have been retrospectively revised to reflect this change.

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,
	2018		2017		2018		2017
	(In millions, except per share amounts)
Net income attributable to McDermott	$	47	$	36	$	82	$	58

Weighted average common stock (basic)		144		94		120		87
Effect of dilutive securities:
Tangible equity units		-		-		-		6
Stock options, restricted stock and restricted stock units		-		-		-		1
Potential dilutive common stock		144		94		120		94

Net income per share attributable to McDermott
Basic:	$	0.33	$	0.38	$	0.68	$	0.67
Diluted:	$	0.33	$	0.38	$	0.68	$	0.62

Approximately 0.5 million shares underlying outstanding stock-based awards for the three and six months ended June 30, 2018, and approximately 0.6 million shares underlying outstanding stock-based awards for the three and six months ended June 30, 2017, 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.