Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share of the Company

v2.4.0.8
Earnings Per Share of the Company (Tanger Factory Outlet Centers, Inc [Member])
 9 Months Ended
Sep. 30, 2013
Tanger Factory Outlet Centers, Inc [Member]
  
Earnings Per Share of the Company
Earnings Per Share of the Company

The following table sets forth a reconciliation of the numerators and denominators in computing the Company's earnings per share (in thousands, except per share amounts):
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2013
 
2012
 
2013
 
2012
Numerator
 
 
 
 
 
 
 
 
Net income attributable to Tanger Factory Outlet Centers, Inc.
 
$
53,294

 
$
15,327

 
$
85,621

 
$
35,172

Less allocation of earnings to participating securities
 
(609
)
 
(209
)
 
(932
)
 
(576
)
Net income available to common shareholders of Tanger Factory Outlet Centers, Inc.
 
$
52,685

 
$
15,118

 
$
84,689

 
$
34,596

Denominator
 
 
 
 
 
 
 
 
Basic weighted average common shares
 
93,368

 
92,674

 
93,278

 
91,359

Effect of notional units
 
856

 
880

 
841

 
865

Effect of outstanding options and restricted common shares
 
76

 
93

 
91

 
78

Diluted weighted average common shares
 
94,300

 
93,647

 
94,210

 
92,302

Basic earnings per common share:
 
 
 
 
 
 
 
 
Net income
 
$
0.56

 
$
0.16

 
$
0.91

 
$
0.38

Diluted earnings per common share:
 
 
 
 
 
 
 
 
Net income
 
$
0.56

 
$
0.16

 
$
0.90

 
$
0.37



The notional units are considered contingently issuable common shares and are included in earnings per share if the effect is dilutive using the treasury stock method.

The computation of diluted earnings per share excludes options to purchase common shares when the exercise price is greater than the average market price of the common shares for the period.  For the three months ended September 30, 2013 and 2012 no options were excluded from the computation. For the nine months ended September 30, 2013, 200 options were excluded from the computation and for the nine months ended September 30, 2012, 167,800 options were excluded from the computation. The assumed exchange of the partnership units held by the noncontrolling interest limited partners as of the beginning of the year, which would result in the elimination of earnings allocated to the noncontrolling interest in the Operating Partnership, would have no impact on earnings per share since the allocation of earnings to a partnership unit, as if exchanged, is equivalent to earnings allocated to a common share.

Certain of the Company's unvested restricted common share awards contain non-forfeitable rights to dividends or dividend equivalents. The impact of these unvested restricted common share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted common share awards based on dividends declared and the unvested restricted common shares' 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 computation if the effect is dilutive, using the treasury stock method.