Earnings Per Share

EPS is calculated using the two-class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity's capital structure includes either two or more classes of common stock or common stock and participating securities. HPU holders are current and former Company employees who purchased high performance common stock units under the Company's High Performance Unit (HPU) Program (see Note 11). These HPU units are treated as a separate class of common stock.

The following table presents a reconciliation of income (loss) from continuing operations used in the basic and diluted earnings per share calculations ($ in thousands, except for per share data):



	For the Years Ended December 31,
	2012			2011			2010
Income (loss) from continuing operations	$	(312,694	)	$	(49,206	)	$	(206,997	)
Net (income) loss attributable to noncontrolling interests	1,500			3,629			(523		)
Income from sales of residential property	63,472			5,721			—
Preferred dividends	(42,320		)	(42,320		)	(42,320		)
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders, HPU holders and Participating Security Holders	$	(290,042	)	$	(82,176	)	$	(249,840	)



	For the Years Ended December 31,
	2012			2011			2010
Earnings allocable to common shares:
Numerator for basic earnings per share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(280,534	)	$	(79,627	)	$	(242,440	)
Income (loss) from discontinued operations	(18,826		)	(7,091		)	16,324
Gain from discontinued operations	26,363			24,331			262,395
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(272,997	)	$	(62,387	)	$	36,279
Numerator for diluted earnings per share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(280,534	)	$	(79,627	)	$	(242,440	)
Income (loss) from discontinued operations	(18,826		)	(7,091		)	16,324
Gain from discontinued operations	26,363			24,331			262,395
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(272,997	)	$	(62,387	)	$	36,279
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding for basic earnings per common share	83,742			88,688			93,244
Add: effect of assumed shares issued under treasury stock method for restricted shares	—			—			—
Add: effect of joint venture shares	—			—			—
Weighted average common shares outstanding for diluted earnings per common share	83,742			88,688			93,244
Basic earnings per common share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.35	)	$	(0.89	)	$	(2.60	)
Income (loss) from discontinued operations	(0.22		)	(0.08		)	0.18
Gain from discontinued operations	0.31			0.27			2.81
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.26	)	$	(0.70	)	$	0.39
Diluted earnings per common share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.35	)	$	(0.89	)	$	(2.60	)
Income (loss) from discontinued operations	(0.22		)	(0.08		)	0.18
Gain from discontinued operations	0.31			0.27			2.81
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(3.26	)	$	(0.70	)	$	0.39



	For the Years Ended December 31,
	2012			2011			2010
Earnings allocable to High Performance Units:
Numerator for basic earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,509	)	$	(2,549	)	$	(7,400	)
Income (loss) from discontinued operations	(638		)	(227		)	497
Gain from discontinued operations	894			779			7,987
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,253	)	$	(1,997	)	$	1,084
Numerator for diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,509	)	$	(2,549	)	$	(7,400	)
Income (loss) from discontinued operations	(638		)	(227		)	497
Gain from discontinued operations	894			779			7,987
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(9,253	)	$	(1,997	)	$	1,084
Denominator for basic and diluted earnings per HPU share:
Weighted average High Performance Units outstanding for basic and diluted earnings per share	15			15			15
Basic earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(633.94	)	$	(169.93	)	$	(493.33	)
Income (loss) from discontinued operations	(42.53		)	(15.13		)	33.13
Gain from discontinued operations	59.60			51.93			532.47
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(616.87	)	$	(133.13	)	$	72.27
Diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(633.94	)	$	(169.93	)	$	(493.33	)
Income (loss) from discontinued operations	(42.53		)	(15.13		)	33.13
Gain from discontinued operations	59.60			51.93			532.47
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(616.87	)	$	(133.13	)	$	72.27

For the years ended December 31, 2012, 2011 and 2010 the following shares were anti-dilutive ($ in thousands):



	For the Years Ended December 31,
	2012	2011	2010
Joint venture shares	298	298	298
Stock options	—	44	143