Earnings Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share

Earnings Per Share

12. Earnings Per Share

Occidental’s instruments containing rights to nonforfeitable dividends granted in stock-based awards are considered participating securities prior to vesting and, therefore, net income allocated to these participating securities has been deducted from earnings in computing basic and diluted EPS under the two-class method.

Basic EPS was computed by dividing net income attributable to common stock, 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, 2017, and 2016 (in millions, except per-share amounts):

	Three months ended						Nine months ended
	September 30						September 30
	2017			2016			2017			2016
Basic EPS
Income (loss) from continuing operations	$	190		$	(238	)	$	814		$	(734	)
Discontinued operations, net	—			(3		)	—			432
Net income (loss)	190			(241		)	814			(302		)
Less: Net income allocated to participating securities	(1		)	—			(4		)	—
Net income (loss), net of participating securities	189			(241		)	810			(302		)
Weighted average number of basic shares	765.5			764.0			764.9			763.7
Basic EPS	$	0.25		$	(0.32	)	$	1.06		$	(0.40	)
Diluted EPS
Net income (loss), net of participating securities	$	189		$	(241	)	$	810		$	(302	)
Weighted average number of basic shares	765.5			764.0			764.9			763.7
Dilutive effect of potentially dilutive securities	0.9			—			0.8			—
Total diluted weighted average common shares	766.4			764.0			765.7			763.7
Diluted EPS	$	0.25		$	(0.32	)	$	1.06		$	(0.40	)