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EARNINGS PER SHARE
 12 Months Ended
Dec. 30, 2011
Earnings Per Share
EARNINGS PER SHARE
The table below illustrates the reconciliation of the earnings (losses) and number of shares used in our calculations of basic and diluted earnings (losses) per share attributable to Marriott shareholders.
 
 
2011
 
2010
 
2009
(in millions, except per share amounts)
 
 
 
 
 
Computation of Basic Earnings Per Share Attributable to Marriott Shareholders
 
 
 
 
 
Net income (loss)
$
198

 
$
458

 
$
(353
)
Net losses attributable to noncontrolling interests
—

 
—

 
7

Net income (loss) attributable to Marriott shareholders
$
198

 
$
458

 
$
(346
)
Weighted average shares outstanding
350.1

 
362.8

 
356.4

Basic earnings (losses) per share attributable to Marriott shareholders
$
0.56

 
$
1.26

 
$
(0.97
)
Computation of Diluted Earnings Per Share Attributable to Marriott Shareholders
 
 
 
 
 
Net income (loss) attributable to Marriott shareholders
$
198

 
$
458

 
$
(346
)
Weighted average shares outstanding
350.1

 
362.8

 
356.4

Effect of dilutive securities
 
 
 
 
 
Employee stock option and SARs plans
8.0

 
11.0

 
—

Deferred stock incentive plans
0.9

 
1.1

 
—

Restricted stock units
3.3

 
3.4

 
—

Shares for diluted earnings per share
362.3

 
378.3

 
356.4

Diluted earnings (losses) per share attributable to Marriott shareholders
$
0.55

 
$
1.21

 
$
(0.97
)


We compute the effect of dilutive securities using the treasury stock method and average market prices during the period. We determine dilution based on earnings. As we recorded a loss in 2009, we did not include the following shares in the “Effect of dilutive securities” caption in the preceding table, because it would have been antidilutive to do so: 7.5 million employee stock option and SARs plan shares, 1.4 million deferred stock incentive plans shares, and 2.1 million RSU shares.
In accordance with the applicable accounting guidance for calculating earnings per share, we have not included the following stock options and SARs in our calculation of diluted earnings per share because the exercise prices were greater than the average market prices for the applicable periods:
(a)
for 2011, 4.1 million options and SARs, with exercise prices ranging from $30.31 to $46.21;
(b)
for 2010, 2.4 million options and SARs, with exercise prices ranging from $34.11 to $49.03; and
(c)
for 2009, 12.3 million options and SARs, with exercise prices ranging from $22.30 to $49.03.