Earnings (Losses) per Share

9 Months Ended

Sep. 30, 2011

Earnings (Losses) per Share

Earnings (Losses) per Share

Note 3. Earnings (Losses) per Share

Basic and diluted earnings (losses) per share are calculated using income (loss) 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 (losses) per share to diluted earnings (losses) per share for income (loss) from continuing operations (in millions, except per share data):

	Three Months Ended September 30,
	2011						2010
	Earnings		Shares		Per Share		Earnings (Losses)			Shares		Per Share
Basic earnings (losses) from continuing operations	$	165		190	$	0.88	$	(5	)		183	$	(0.03	)
Effect of dilutive securities:
Employee stock options and restricted stock awards		—		5				—			—
Diluted earnings (losses) from continuing operations	$	165		195	$	0.85	$	(5	)		183	$	(0.03	)
	Nine Months Ended September 30,
	2011						2010
	Earnings		Shares		Per Share		Earnings			Shares		Per Share
Basic earnings from continuing operations	$	344		189	$	1.83	$	104			182	$	0.57
Effect of dilutive securities:
Employee stock options and restricted stock awards		—		6				—			7
Diluted earnings from continuing operations	$	344		195	$	1.77	$	104			189	$	0.55

Approximately 3 million and 20 million shares for the three months ended September 30, 2011 and 2010, respectively, and 1 million and 5 million shares for the nine months ended September 30, 2011 and 2010, respectively, were excluded from the computation of diluted shares, respectively, as their impact would have been anti-dilutive.