Annual report pursuant to Section 13 and 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])
 12 Months Ended
Dec. 31, 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 earnings per unit for the years ended December 31, 2013, 2012 and 2011 (in thousands, except per unit amounts). Note that all per unit amounts reflect a four-for-one split of the Operating Partnership's units in August 2013:
 
 
2013
 
2012
 
2011
NUMERATOR
 
 
 
 
 
 
Income from continuing operations available to partners of the Operating Partnership
 
$
113,200

 
$
56,495

 
$
50,997

Allocation of earnings to participating securities
 
(1,129
)
 
(784
)
 
(684
)
Net income available to common unitholders of the Operating Partnership
 
$
112,071

 
$
55,711

 
$
50,313

DENOMINATOR
 
 
 
 
 
 
Basic weighted average common units
 
98,193

 
97,677

 
94,892

Effect of notional units
 
849

 
846

 
965

Effect of exchangeable notes
 
—

 
—

 
93

Effect of outstanding options and certain restricted units
 
87

 
82

 
71

Diluted weighted average common units
 
99,129

 
98,605

 
96,021

 
 
 
 
 
 
 
Basic earnings per common unit:
 
 
 
 
 
 
Net income
 
$
1.14

 
$
0.57

 
$
0.53

 
 
 
 
 
 
 
Diluted earnings per common unit:
 
 
 
 
 
 
Net income
 
$
1.13

 
$
0.57

 
$
0.52



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 the exercise of options or issues restricted share awards, the Operating Partnership issues one corresponding Class B common limited partnership unit to Tanger LP Trust, a wholly owned subsidiary of the Company, for each Company common share 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 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 the market price of a Company common share. For the year ended December 31, 2013, no options were excluded from the computation, and for the years ended December 31, 2012 and 2011, 17,600 and 183,500 options were excluded from the computation, respectively.

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