Earnings Per Share

3 Months Ended

Mar. 31, 2016

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, 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, 2016 and 2015 (in millions, except per-share amounts):

	Three months ended March 31
	2016		2015
Basic EPS
Loss from continuing operations	$	(360)	$	(215)
Discontinued operations, net	438		(3)
Net income (loss)	78		(218)

Less: Net income allocated to participating securities	—		—
Net income (loss), net of participating securities	78		(218)

Weighted average number of basic shares	763.4		769.6
Basic EPS	$	0.10	$	(0.28)

Diluted EPS
Net income (loss), net of participating securities	$	78	$	(218)
Weighted average number of basic shares	763.4		769.6
Dilutive effect of potentially dilutive securities	—		—
Total diluted weighted average common shares	763.4		769.6
Diluted EPS	$	0.10	$	(0.28)