Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Unit of the Operating Partnership

v3.2.0.727
Earnings Per Unit of the Operating Partnership
6 Months Ended
Jun. 30, 2015
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 (in thousands, except per unit amounts):
 
 
Three months ended June 30,
Six months ended June 30,
 
 
2015
 
2014
2015
 
2014
Numerator
 
 

 
 
 

 
 

Net income attributable to partners of the Operating Partnership
 
$
25,794

 
$
19,878

$
62,161

 
$
35,297

Less allocation of earnings to participating securities
 
(308
)
 
(481
)
(716
)
 
(910
)
Net income available to common unitholders of the Operating Partnership
 
$
25,486

 
$
19,397

$
61,445

 
$
34,387

Denominator
 
 
 
 
 
 
 
Basic weighted average common units
 
99,819

 
98,916

99,717

 
98,818

Effect of notional units
 

 


 

Effect of outstanding options and certain restricted common units
 
54

 
74

66

 
72

Diluted weighted average common units
 
99,873

 
98,990

99,783

 
98,890

Basic earnings per common unit:
 
 
 
 
 
 
 
Net income
 
$
0.26

 
$
0.20

$
0.62

 
$
0.35

Diluted earnings per common unit:
 
 
 
 
 
 
 
Net income
 
$
0.26

 
$
0.20

$
0.62

 
$
0.35



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 three and six months ended June 30, 2015, 250,700 and 250,800 options were excluded from the computation, respectively. For the both the three and six months ended June 30, 2014, 276,500 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 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.