Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share of the Company

v3.3.0.814
Earnings Per Share of the Company
 9 Months Ended
Sep. 30, 2015
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,
 
 
2015
 
2014
 
2015
 
2014
Numerator
 
 
 
 
 
 
 
 
Net income attributable to Tanger Factory Outlet Centers, Inc.
 
$
44,075

 
$
23,003

 
$
103,068

 
$
56,469

Less allocation of earnings to participating securities
 
(494
)
 
(481
)
 
(1,210
)
 
(1,391
)
Net income available to common shareholders of Tanger Factory Outlet Centers, Inc.
 
$
43,581

 
$
22,522

 
$
101,858

 
$
55,078

Denominator
 
 
 
 
 
 
 
 
Basic weighted average common shares
 
94,746

 
93,834

 
94,675

 
93,741

Effect of notional units
 
—

 
—

 
—

 
—

Effect of outstanding options and certain restricted common shares
 
53

 
67

 
62

 
70

Diluted weighted average common shares
 
94,799

 
93,901

 
94,737

 
93,811

Basic earnings per common share:
 
 
 
 
 
 
 
 
Net income
 
$
0.46

 
$
0.24

 
$
1.08

 
$
0.59

Diluted earnings per common share:
 
 
 
 
 
 
 
 
Net income
 
$
0.46

 
$
0.24

 
$
1.08

 
$
0.59



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 vested on December 31, 2014 and were 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 and nine months ended September 30, 2015, 250,400 and 250,500 options were excluded from the computation, respectively. For the both the three and nine months ended September 30, 2014, 273,500 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.