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])
 6 Months Ended
Jun. 30, 2014
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 June 30,
 
Six months ended June 30,
 
 
2014
 
2013
 
2014
 
2013
Numerator
 
 
 
 
 
 
 
 
Net income attributable to Tanger Factory Outlet Centers, Inc.
 
$
18,850

 
$
16,888

 
$
33,466

 
$
32,327

Less allocation of earnings to participating securities
 
(481
)
 
(231
)
 
(910
)
 
(425
)
Net income available to common shareholders of Tanger Factory Outlet Centers, Inc.
 
$
18,369

 
$
16,657

 
$
32,556

 
$
31,902

Denominator
 
 
 
 
 
 
 
 
Basic weighted average common shares
 
93,800

 
93,331

 
93,690

 
93,232

Effect of notional units
 
—

 
784

 
—

 
777

Effect of outstanding options and certain restricted common shares
 
74

 
92

 
72

 
99

Diluted weighted average common shares
 
93,874

 
94,207

 
93,762

 
94,108

Basic earnings per common share:
 
 
 
 
 
 
 
 
Net income
 
$
0.20

 
$
0.18

 
$
0.35

 
$
0.34

Diluted earnings per common share:
 
 
 
 
 
 
 
 
Net income
 
$
0.20

 
$
0.18

 
$
0.35

 
$
0.34



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. Notional units granted in 2010 were converted into 933,769 restricted common shares in January 2014. The restricted common shares vest on December 31, 2014 and will be considered participating securities through the vesting date.

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 June 30, 2014, 276,500 options were excluded from the computation and for the three months ended June 30, 2013 no options were excluded from the computation. For the six months ended June 30, 2014, 276,500 options were excluded from the computation and for the six months ended June 30, 2013, no options were excluded from the computation. The assumed exchange of the partnership units held by the Non-Company LPs 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 common limited 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.