Earnings Per Share

6 Months Ended

Jun. 30, 2011

Note 3. Earnings per Share

Basic and diluted earnings per share are calculated using income from continuing operations attributable to Starwood’s common shareholders (i.e. excluding amounts attributable to noncontrolling interests).

The following is a reconciliation of basic earnings per share to diluted earnings per share for income from continuing operations (in millions, except per share data):


	Three Months Ended June 30,
	2011							2010
					Per							Per
	Earnings		Shares		Share			Earnings		Shares		Share
Basic earnings from continuing operations	$	150		189	$	0.79		$	79		182	$	0.44
Effect of dilutive securities:
Employee stock options and restricted stock awards		—		6		(0.02	)		—		7		(0.02	)

Diluted earnings from continuing operations	$	150		195	$	0.77		$	79		189	$	0.42


	Six Months Ended June 30,
	2011							2010
					Per							Per
	Earnings		Shares		Share			Earnings		Shares		Share
Basic earnings from continuing operations	$	179		188	$	0.95		$	109		182	$	0.60
Effect of dilutive securities:
Employee stock options and restricted stock awards		—		7		(0.03	)		—		6		(0.02	)

Diluted earnings from continuing operations	$	179		195	$	0.92		$	109		188	$	0.58

Approximately 1,103,000 and 5,111,000 shares for the three months ended June 30, 2011 and 2010, respectively, and 875,000 and 5,185,000 shares for the six months ended June 30, 2011 and 2010, respectively, were excluded from the computation of diluted shares, respectively, as their impact would have been anti-dilutive.