Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2011

Earnings (Loss) Per Share

Earnings (Loss) Per Share

15.  Earnings (Loss) Per Share

The following table presents the net income (loss) used in basic and diluted earnings (loss) per share and reconciles weighted average number of shares used in the calculations of basic and diluted earnings (loss) per share.

(Shares in millions)	Three Months Ended June 30,					Six Months Ended June 30,
	2011		2010			2011		2010
Consolidated Statement of Operations:
Income (Loss) from continuing operations	$	70	$	54		$	136	$	(1	)
Less: Net Income attributable to noncontrolling interest		2		0			3		1
Income (Loss) from continuing operations attributable to Solutia		68		54			133		(2	)
Loss from discontinued operations, net of tax		0		(13	)		0		(15	)
Net Income (Loss) attributable to Solutia	$	68	$	41		$	133	$	(17	)
Weighted-average number of shares outstanding used for basic earnings (loss) per share		119.7		118.7			119.5		118.6
Non-vested restricted shares		1.3		1.2			1.3		N/A	(a)
Stock options		0.5		0			0.5		0
Weighted average number of shares outstanding and common equivalent shares used for diluted earnings (loss) per share		121.5		119.9			121.3		118.6

(a) 1.1 million shares of non-vested restricted stock for the six months ended June 30, 2010 were excluded from the dilutive earnings per share calculation because we experienced a net loss for this period.

During the three and six months ended June 30, 2011 and 2010, the following shares were not included in the computation of earnings (loss) per share since the result would have been anti-dilutive.

	Three Months Ended June 30,				Six Months Ended June 30,
(Shares in millions)	2011		2010		2011		2010
Non-vested restricted shares		0.1		0.5		0		0.2
Stock options		1.1		2.6		1.3		2.2
Warrants (a)		4.5		4.5		4.5		4.5

 (a) Upon the Effective Date, we issued warrants to purchase an aggregate of 4,481,168 shares to certain of the holders of our stock based on such holder's pre-petition stock ownership. These warrants have an exercise price of $29.70 and expire on February 27, 2013.