Annual report pursuant to Section 13 and 15(d)

Earnings Per Unit of the Operating Partnership

v2.4.1.9
Earnings Per Unit of the Operating Partnership (Tanger Properties Limited Partnership [Member])
12 Months Ended
Dec. 31, 2014
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, 2014, 2013 and 2012 (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:
 
 
2014
 
2013
 
2012
Numerator
 
 
 
 
 
 
Net income attributable to partners of the Operating Partnership
 
$
78,048

 
$
113,200

 
$
56,495

Allocation of earnings to participating securities
 
(1,873
)
 
(1,129
)
 
(784
)
Net income available to common unitholders of the Operating Partnership
 
$
76,175

 
$
112,071

 
$
55,711

Denominator
 
 
 
 
 
 
Basic weighted average common units
 
98,883

 
98,193

 
97,677

Effect of notional units
 

 
849

 
846

Effect of outstanding options and certain restricted common units
 
70

 
87

 
82

Diluted weighted average common units
 
98,953

 
99,129

 
98,605

 
 
 
 
 
 
 
Basic earnings per common unit:
 
 
 
 
 
 
Net income
 
$
0.77

 
$
1.14

 
$
0.57

 
 
 
 
 
 
 
Diluted earnings per common unit:
 
 
 
 
 
 
Net income
 
$
0.77

 
$
1.13

 
$
0.57



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

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 years ended December 31, 2014 and 2012, 259,000 options and 17,600 options were excluded from the computation, respectively. There were no options excluded from the computation for the year end December 31, 2013.

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.