Earnings Per Share

9 Months Ended

Sep. 30, 2016

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, 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 and nine months ended September 30, 2016 and 2015 (in millions, except per-share amounts):

	Three months endedSeptember 30				Nine months endedSeptember 30
	2016		2015		2016		2015
Basic EPS
Loss from continuing operations	$	(238)	$	(2,606)	$	(734)	$	(2,641)
Discontinued operations, net		(3)		(3)		432		(10)
Net loss		(241)		(2,609)		(302)		(2,651)
Less: Net income allocated to participating securities		—		—		—		—
Net loss, net of participating securities		(241)		(2,609)		(302)		(2,651)
Weighted average number of basic shares		764.0		763.3		763.7		766.4
Basic EPS	$	(0.32)	$	(3.42)	$	(0.40)	$	(3.46)
Diluted EPS
Net loss, net of participating securities	$	(241)	$	(2,609)	$	(302)	$	(2,651)
Weighted average number of basic shares		764.0		763.3		763.7		766.4
Dilutive effect of potentially dilutive securities		—		—		—		—
Total diluted weighted average common shares		764.0		763.3		763.7		766.4
Diluted EPS	$	(0.32)	$	(3.42)	$	(0.40)	$	(3.46)