Earnings Per Share

6 Months Ended

Jun. 30, 2016

2. Earnings Per Share

Basic earnings or loss per share attributable to PHH Corporation was computed by dividing Net income or loss attributable to PHH Corporation by the weighted-average number of shares outstanding during the period. Diluted earnings or loss per share attributable to PHH Corporation was computed by dividing Net income or loss attributable to PHH Corporation by the weighted-average number of shares outstanding during the period, assuming all potentially dilutive common shares were issued. Share repurchases or issuances are included in the outstanding shares as of each settlement date.

The weighted-average computation of the dilutive effect of potentially issuable shares of Common stock under the treasury stock method excludes the effect of any contingently issuable securities where the contingency has not been met and excludes the effect of securities that would be anti-dilutive. Anti-dilutive securities may include: (i) outstanding stock-based compensation awards representing shares from restricted stock units and stock options; and (ii) stock assumed to be issued related to convertible notes.

Weighted-average common shares outstanding includes the following activity:


•	the repurchase of 1,508,772 shares during January 2016 under an open market repurchase program;


•	the issuance of 10,075,653 shares during June 2015 which represented the amount by which the conversion value exceeded the note principal under an exchange offer of certain convertible debt; and


•	the receipt and retirement of 1,574,252 shares during March 2015 which represented the final delivery of shares under accelerated repurchase programs.

The following table summarizes the calculations of basic and diluted earnings or loss per share attributable to PHH Corporation for the periods indicated:



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(In millions, except share and per share data)
Net loss attributable to PHH Corporation	$	(12	)	$	(62	)	$	(42	)	$	(41	)

Weighted-average common shares outstanding — basic & diluted	53,568,357			51,135,313			53,635,793			51,154,163

Basic and Diluted loss per share attributable to PHH Corporation	$	(0.22	)	$	(1.20	)	$	(0.78	)	$	(0.80	)

The following table summarizes anti-dilutive securities excluded from the computation of diluted shares:



	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
Outstanding stock-based compensation awards⁽¹⁾	1,946,982	1,836,791	1,946,982	1,836,791
Assumed conversion of debt securities	—	8,482,846	—	8,751,067

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⁽¹⁾	For the three and six months ended June 30, 2016, excludes 493,657 shares that are contingently issuable for which the contingency has not been met.