Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Unit of the Operating Partnership

v2.4.0.8
Earnings Per Unit of the Operating Partnership (Tanger Properties Limited Partnership [Member])
 6 Months Ended
Jun. 30, 2013
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 the Operating Partnership's earnings per unit (in thousands, except per unit amounts):
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2013
 
2012
 
2013
 
2012
Numerator
 
 

 
 
 
 

 
 

Net income attributable to partners of the Operating Partnership
 
$
17,747

 
$
12,483

 
$
33,975

 
$
21,324

Less allocation of earnings to participating securities
 
(231
)
 
(209
)
 
(425
)
 
(367
)
Net income available to common unitholders of the Operating Partnership
 
$
17,516

 
$
12,274

 
$
33,550

 
$
20,957

Denominator
 
 
 
 
 
 
 
 
Basic weighted average common units
 
24,520

 
24,428

 
24,496

 
24,405

Effect of notional units
 
196

 
254

 
194

 
252

Effect of outstanding options and restricted common units
 
23

 
21

 
25

 
19

Diluted weighted average common units
 
24,739

 
24,703

 
24,715

 
24,676

Basic earnings per common unit:
 
 
 
 
 
 
 
 
Net income
 
$
0.71

 
$
0.50

 
$
1.37

 
$
0.86

Diluted earnings per common unit:
 
 
 
 
 
 
 
 
Net income
 
$
0.71

 
$
0.50

 
$
1.36

 
$
0.85



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 share awards, the Operating Partnership issues one corresponding unit to the Company for every four common shares issued.

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 three months ended June 30, 2013 no units were excluded from the computation and for the three months ended June 30, 2012, 43,025 units, which would be issued upon the exercise of outstanding options, were excluded from the computation. For the six months ended June 30, 2013, no units were excluded from the computation and for the six months ended June 30, 2012, 43,050 units, which would be issued upon the exercise of outstanding options, were excluded from the computation.

Certain of the Company's unvested restricted common share awards contain non-forfeitable rights to distributions or distribution equivalents. The impact of these 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. Unvested restricted common shares that do not contain non-forfeitable rights to dividends or dividend equivalents, are included in the diluted earnings per share compilation if the effect is dilutive, using the treasury stock method.