Tanger Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share of the Company

Earnings Per Share of the Company

3 Months Ended

Mar. 31, 2016

Tanger Factory Outlet Centers, Inc [Member]

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 March 31,
	2016			2015
Numerator
Net income attributable to Tanger Factory Outlet Centers, Inc.	$	27,150		$	34,512
Less allocation of earnings to participating securities	(294		)	(408		)
Net income available to common shareholders of Tanger Factory Outlet Centers, Inc.	$	26,856		$	34,104
Denominator
Basic weighted average common shares	94,944			94,536
Effect of notional units	—			82
Effect of outstanding options and certain restricted common shares	59			79
Diluted weighted average common shares	95,003			94,697
Basic earnings per common share:
Net income	$	0.28		$	0.36
Diluted earnings per common share:
Net income	$	0.28		$	0.36

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.

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 March 31, 2016, 218,200 options were excluded from the computation and for the three months ended March 31, 2015, 252,000 options were excluded from the computation, as they were anti-dilutive. 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.