Earnings Per Share

9 Months Ended

Sep. 30, 2013

Earnings Per Share

Earnings Per Share

12. Earnings Per Share

Occidental’s instruments containing rights to nonforfeitable dividends granted in stock-based payment transactions are considered participating securities prior to vesting and, therefore, have been included in the earnings allocations in computing basic and diluted EPS under the two-class method.

Basic EPS was computed by dividing net income, net of income allocated to participating securities, by the weighted-average number of common shares outstanding during each period, net of treasury shares and including vested but unissued shares and share units.  The computation of diluted EPS reflects the additional dilutive effect of stock options and unvested stock awards.

The following table presents the calculation of basic and diluted EPS for the three and nine months ended September 30, 2013 and 2012:

	Periods ended September 30
	Three months						Nine months
(in millions, except per-share amounts)	2013			2012			2013			2012
Basic EPS
Income from continuing operations	$	1,588		$	1,379		$	4,274		$	4,271
Discontinued operations, net	(5		)	(4		)	(14		)	(9		)
Net income	1,583			1,375			4,260			4,262
Less: Net income allocated to participating securities	(4		)	(3		)	(9		)	(8		)
Net income, net of participating securities	$	1,579		$	1,372		$	4,251		$	4,254
Weighted average number of basic shares	805.1			809.7			804.8			810.1
Basic EPS	$	1.96		$	1.69		$	5.28		$	5.25
Diluted EPS
Net income, net of participating securities	$	1,579		$	1,372		$	4,251		$	4,254
Weighted average number of basic shares	805.1			809.7			804.8			810.1
Dilutive effect of potentially dilutive securities	0.6			0.7			0.6			0.7
Total diluted weighted average common shares	805.7			810.4			805.4			810.8
Diluted EPS	$	1.96		$	1.69		$	5.28		$	5.25