Earnings Per Share

6 Months Ended

Jun. 30, 2014

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, have 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 six months ended June 30, 2014 and 2013:

	Periods ended June 30
	Three months						Six months
(in millions, except per-share amounts)	2014			2013			2014			2013
Basic EPS
Income from continuing operations	$	1,435		$	1,327		$	2,824		$	2,686
Less: Income from continuing operations attributable to noncontrolling interest	(3		)	—			(5		)	—
Income from continuing operations attributable to common stock	1,432			1,327			2,819			2,686
Discontinued operations, net	(1		)	(5		)	2			(9		)
Net income attributable to common stock	1,431			1,322			2,821			2,677
Less: Net income allocated to participating securities	(3		)	(3		)	(4		)	(5		)
Net income attributable to common stock, net of participating securities	$	1,428		$	1,319		$	2,817		$	2,672
Weighted average number of basic shares	782.6			804.9			786.9			804.8
Basic EPS	$	1.83		$	1.64		$	3.58		$	3.32
Diluted EPS
Net income attributable to common stock, net of participating securities	$	1,428		$	1,319		$	2,817		$	2,672
Weighted average number of basic shares	782.6			804.9			786.9			804.8
Dilutive effect of potentially dilutive securities	0.3			0.5			0.3			0.5
Total diluted weighted average common shares	782.9			805.4			787.2			805.3
Diluted EPS	$	1.82		$	1.64		$	3.58		$	3.32