Earnings Per Share

6 Months Ended

Jun. 30, 2012

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 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 six months ended June 30, 2012 and 2011:

	Periods Ended June 30
	Three months						Six months
(in millions, except per-share amounts)	2012			2011			2012			2011
Basic EPS
Income from continuing operations	$	1,332		$	1,819		$	2,892		$	3,224
Discontinued operations, net	(4		)	(2		)	(5		)	142
Net income	1,328			1,817			2,887			3,366
Less: Net income allocated to participating securities	(2		)	(3		)	(4		)	(6		)
Net income, net of participating securities	$	1,326		$	1,814		$	2,883		$	3,360
Weighted average number of basic shares	810.3			812.5			810.4			812.5
Basic EPS	$	1.64		$	2.23		$	3.55		$	4.14
Diluted EPS
Net income, net of participating securities	$	1,326		$	1,814		$	2,883		$	3,360
Weighted average number of basic shares	810.3			812.5			810.4			812.5
Dilutive effect of potentially dilutive securities	0.7			0.8			0.8			0.8
Total diluted weighted average common shares	811.0			813.3			811.2			813.3
Diluted EPS	$	1.64		$	2.23		$	3.55		$	4.13