Earnings Per Share

9 Months Ended

Sep. 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 nine months ended September 30, 2014 and 2013:

	Three months ended September 30						Nine months ended September 30
(in millions, except per-share amounts)	2014			2013			2014			2013
Basic EPS
Income from continuing operations	$	1,214		$	1,588		$	4,038		$	4,274
Less:  Income from continuing operations attributable to noncontrolling interest	(3		)	—			(8		)	—
Income from contributing operations attributable to common stock	1,211			1,588			4,030			4,274
Discontinued operations, net	(3		)	(5		)	(1		)	(14		)
Net Income	1,208			1,583			4,029			4,260
Less: Net Income allocated to participating securities	(3		)	(4		)	(8		)	(9		)
Net income, net of participating securities	1,205			1,579			4,021			4,251
Weighted average number of basic shares	777.4			805.1			783.7			804.8
Basic EPS	$	1.55		$	1.96		$	5.13		$	5.28
Diluted EPS
Net income, net of participating securities	$	1,205		$	1,579		$	4,021		$	4,251
Weighted average number of basic shares	777.4			805.1			783.7			804.8
Dilutive effect of potentially dilutive securities	0.3			0.6			0.4			0.6
Total diluted weighted average common shares	777.7			805.7			784.1			805.4
Diluted EPS	$	1.55		$	1.96		$	5.13		$	5.28