(Loss) Earnings Per Share

6 Months Ended

Jun. 30, 2011

(Loss) Earnings Per Share [Abstract]

(Loss) Earnings Per Share

2.  (Loss) Earnings Per Share

Basic (loss) earnings per share attributable to PHH Corporation was computed by dividing Net (loss) income attributable to PHH Corporation during the period by the weighted-average number of shares outstanding during the period. Diluted (loss) earnings per share attributable to PHH Corporation was computed by dividing Net (loss) income attributable to PHH Corporation by the weighted-average number of shares outstanding, assuming all potentially dilutive common shares were issued.

The weighted-average computation of the dilutive effect of potentially issuable shares of Common stock under the treasury stock method excludes the effect of securities that would be anti-dilutive, including: (i) outstanding stock-based compensation awards for the three and six months ending June 30, 2011 of approximately 2.0 million and 0.3 million, respectively, and for the three and six months ending June 30, 2010 of 2.7 million; (ii) 0.2 million of stock assumed to be issued related to the 2012 Convertible notes for the three months ended June 30, 2011; (iii) purchased options and sold warrants related to the assumed conversion of the 2012 Convertible notes; and (iv) sold warrants related to the Company’s 2014 Convertible notes. The computation also excludes the assumed issuance of the 2014 Convertible notes and related purchased options as they are currently to be settled only in cash.

The following table summarizes the calculations of basic and diluted (loss) earnings per share attributable to PHH Corporation for the periods indicated:

	Three Months						Six Months
	Ended June 30,						Ended June 30,
	2011			2010			2011		2010
	(In millions, except share and per share data)
Net (loss) income attributable to PHH Corporation	$	(41	)	$	(133	)	$	8	$	(125	)
Weighted-average common shares outstanding — basic		56,374,448			55,547,650			56,242,221		55,293,111
Effect of potentially dilutive securities:
Share-based payment arrangements(1)		—			—			619,926		—
Conversion of debt securities(2)		—			—			897,245		—
Weighted-average common shares outstanding — diluted		56,374,448			55,547,650			57,759,392		55,293,111
Basic (loss) earnings per share attributable to PHH Corporation	$	(0.73	)	$	(2.40	)	$	0.14	$	(2.26	)
Diluted (loss) earnings per share attributable to PHH Corporation	$	(0.73	)	$	(2.40	)	$	0.14	$	(2.26	)

(1)	Represents incremental shares from restricted stock units and stock options.
(2)	Represents assumed conversion of the 2012 Convertible notes.