National Oilwell Varco 2015 Annual Report Download - page 83

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Table of Contents
Net Income Attributable to Company Per Share
The following table sets forth the computation of weighted average basic and diluted shares outstanding (in millions, except per share data):


Numerator:
Income (loss) from continuing operations $ (769) $2,450 $2,180
Income from discontinued operations $ — $ 52 $ 147
Net income (loss) attributable to Company $ (769) $2,502 $2,327
Denominator:
Basic—weighted average common shares outstanding 387 428 426
Dilutive effect of employee stock options and other unvested stock awards — 2 2
Diluted outstanding shares 387 430 428
Per share data:
Basic:
Income (loss) from continuing operations $(1.99) $ 5.73 $ 5.11
Income from discontinued operations $ — $ 0.12 $ 0.35
Net income (loss) attributable to Company $(1.99) $ 5.85 $ 5.46
Diluted:
Income (loss) from continuing operations $(1.99) $ 5.70 $ 5.09
Income from discontinued operations $ — $ 0.12 $ 0.35
Net income (loss) attributable to Company $(1.99) $ 5.82 $ 5.44
Cash dividends per share $ 1.84 $ 1.64 $ 0.91
ASC Topic 260, “Earnings Per Share” (“ASC Topic 260”) requires companies with unvested participating securities to utilize a two-class method for the
computation of net income attributable to Company per share. The two-class method requires a portion of net income attributable to Company to be
allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend
equivalents, if declared. Net income attributable to Company allocated to these participating securities was immaterial for the years ended December 31,
2015, 2014 and 2013 and therefore not excluded from net income attributable to Company per share calculation. The Company had stock options
outstanding that were anti-dilutive totaling 13 million, 8 million, and 7 million at December 31, 2015, 2014 and 2013, respectively.
Recently Issued Accounting Standards
In November 2015, the FASB issued ASU 2015-17 “Balance Sheet Classification of Deferred Taxes” (ASU No. 2015-17), which amends existing guidance on
income taxes to require the classification of all deferred tax assets and liabilities as non-current on the balance sheet. ASU No. 2015-17 is effective for fiscal
years beginning after December 15, 2017, with early adoption permitted, and the guidance may be applied either prospectively or retrospectively. The
Company does not expect the adoption of ASU No. 2015-17 will have a material effect on its consolidated financial position and results of operations.
In April 2015, the FASB issued an ASU 2015-03 “Simplifying the Presentation of Debt Issuance Costs” to simplify the presentation of debt issuance costs.
The update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying
amount of that
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