Annual report pursuant to Section 13 and 15(d)

Earnings Per Unit of the Operating Partnership

v2.4.0.6
Earnings Per Unit of the Operating Partnership (Tanger Properties Limited Partnership [Member])
12 Months Ended
Dec. 31, 2012
Tanger Properties Limited Partnership [Member]
 
Earnings Per Unit of the Operating Partnership
Earnings Per Unit of the Operating Partnership

The following table sets forth a reconciliation of the numerators and denominators in computing earnings per unit for the years ended December 31, 2012, 2011 and 2010 (in thousands, except per unit amounts):
 
 
2012
 
2011
 
2010
NUMERATOR
 
 
 
 
 
 
Income from continuing operations available to partners of the Operating Partnership
 
$
56,495

 
$
50,997

 
$
38,342

Applicable preferred unit distributions
 

 

 
(5,297
)
Original issuance costs related to redeemed preferred units
 

 

 
(2,539
)
Allocation of earnings to participating securities
 
(784
)
 
(684
)
 
(598
)
Income from continuing operations available to common unitholders of the Operating Partnership
 
55,711

 
50,313

 
29,908

Discontinued operations
 

 

 
(98
)
Net income available to common unitholders of the Operating Partnership
 
$
55,711

 
$
50,313

 
$
29,810

DENOMINATOR
 
 
 
 
 
 
Basic weighted average common units
 
24,419

 
23,723

 
23,080

Effect of notional units
 
212

 
241

 

Effect of exchangeable notes
 

 
23

 
28

Effect of outstanding options
 
20

 
18

 
23

Diluted weighted average common units
 
24,651

 
24,005

 
23,131

 
 
 
 
 
 
 
Basic earnings per common unit:
 
 
 
 
 
 
Income from continuing operations
 
$
2.28

 
$
2.12

 
$
1.29

Discontinued operations
 

 

 

Net income
 
$
2.28

 
$
2.12

 
$
1.29

 
 
 
 
 
 
 
Diluted earnings per common unit:
 
 
 
 
 
 
Income from continuing operations
 
$
2.26

 
$
2.10

 
$
1.29

Discontinued operations
 

 

 

Net income
 
$
2.26

 
$
2.10

 
$
1.29


The notional units are considered contingently issuable common units and are included in earnings per unit if the effect is dilutive using the treasury stock method.
When the Company issues common shares upon exercise of options or issues restricted common share awards, the Operating Partnership issues one corresponding unit to the Company for every four common shares issued. Outstanding senior, exchangeable notes were included in the diluted earnings per unit computation, if the effect was dilutive, using the treasury stock method.  In applying the treasury stock method, the effect was dilutive if the average market price of the Company's common shares for at least 20 trading days in the 30 consecutive trading days at the end of each quarter were higher than the exchange price, which prior to redemption was $17.83 per common share.The remaining senior exchangeable notes were exchanged for the Company's common shares during 2011.
The computation of diluted earnings per unit excludes options to purchase common units when the exercise price is greater than the average market price of the common units for the period. The market price of a common unit is considered to be equivalent to four times the market price of a Company common share. For the year ended December 31, 2012 and 2011, 4,400 and 45,875 options were excluded from the computation. No options were excluded from the computation for the year ended December 31, 2010.

The Company's unvested restricted common share awards contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted unit awards on earnings per unit has been calculated using the two-class method whereby earnings are allocated to the unvested restricted unit awards based on distributions declared and the unvested restricted units' participation rights in undistributed earnings.