NOTE 20—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 September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In millions, except per share amounts)
Net income attributable to McDermott	$	2	$	95	$	84	$	153

Weighted average common stock (basic)		180		95		140		90
Effect of dilutive securities:
Tangible equity units		-		-		-		4
Stock options, restricted stock and restricted stock units		1		-		1		1
Potential dilutive common stock		181		95		141		95

Net income per share attributable to McDermott
Basic:	$	0.01	$	1.00	$	0.60	$	1.70
Diluted:	$	0.01	$	1.00	$	0.60	$	1.61

Approximately 0.5 million shares underlying outstanding stock-based awards for the three and nine months ended September 30, 2018, and approximately 0.5 million shares underlying outstanding stock-based awards for the three and nine months ended September 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.