Tanger Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Earnings Per Share of the Company

Earnings Per Share of the Company

12 Months Ended

Dec. 31, 2015

Tanger Factory Outlet Centers, Inc [Member]

The following table sets forth a reconciliation of the numerators and denominators in computing earnings per share for the years ended December 31, 2015, 2014 and 2013 (in thousands, except per share amounts):



	2015			2014			2013
Numerator
Net income attributable to Tanger Factory Outlet Centers, Inc.	$	211,200		$	74,011		$	107,557
Less allocation of earnings to participating securities	(2,408		)	(1,872		)	(1,126		)
Net income available to common shareholders of Tanger Factory Outlet Centers, Inc.	$	208,792		$	72,139		$	106,431
Denominator
Basic weighted average common shares	94,698			93,769			93,311
Effect of notional units	—			—			849
Effect of outstanding options and certain restricted common shares	61			70			87
Diluted weighted average common shares	94,759			93,839			94,247

Basic earnings per common share:
Net income	$	2.20		$	0.77		$	1.14

Diluted earnings per common share:
Net income	$	2.20		$	0.77		$	1.13

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 years ended December 31, 2015 and 2014, 227,400 options and 259,000 options were excluded from the computation, respectively. There were no options excluded from the computation for the year ended December 31, 2013. 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.