Earnings Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share

Earnings Per Share

13. 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 months ended March 31, 2015 and 2014 (in millions, except per-share amounts):

	Three months ended  March 31
	2015			2014
Basic EPS
Income (loss) from continuing operations	$	(215	)	$	1,137
Less: Income from continuing operations attributable to noncontrolling interest	—			(2		)
Income (loss) from continuing operations attributable to common stock	(215		)	1,135
Discontinued operations, net	(3		)	255
Net income (loss)	(218		)	1,390
Less: Net income (loss) allocated to participating securities	—			(2		)
Net income (loss), net of participating securities	(218		)	1,388
Weighted average number of basic shares	769.6			791.3
Basic EPS	$	(0.28	)	$	1.75
Diluted EPS
Net income (loss), net of participating securities	$	(218	)	$	1,388
Weighted average number of basic shares	769.6			791.3
Dilutive effect of potentially dilutive securities	—			0.4
Total diluted weighted average common shares	769.6			791.7
Diluted EPS	$	(0.28	)	$	1.75