Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Unit of the Operating Partnership

v3.5.0.2
Earnings Per Unit of the Operating Partnership
 6 Months Ended
Jun. 30, 2016
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,
 
 
2016
 
2015
 
2016
 
2015
Numerator
 
 

 
 
 
 

 
 

Net income attributable to partners of the Operating Partnership
 
$
77,314

 
$
25,794

 
$
105,908

 
$
62,161

Less allocation of earnings to participating securities
 
(725
)
 
(308
)
 
(1,019
)
 
(716
)
Net income available to common unitholders of the Operating Partnership
 
$
76,589

 
$
25,486

 
$
104,889

 
$
61,445

Denominator
 
 
 
 
 
 
 
 
Basic weighted average common units
 
100,177

 
99,819

 
100,087

 
99,717

Effect of notional units
 
183

 
—

 
167

 
—

Effect of outstanding options and certain restricted common units
 
68

 
54

 
64

 
66

Diluted weighted average common units
 
100,428

 
99,873

 
100,318

 
99,783

Basic earnings per common unit:
 
 
 
 
 
 
 
 
Net income
 
$
0.76

 
$
0.26

 
$
1.05

 
$
0.62

Diluted earnings per common unit:
 
 
 
 
 
 
 
 
Net income
 
$
0.76

 
$
0.26

 
$
1.05

 
$
0.62



We determine diluted earnings per unit based on the weighted average number of common units outstanding combined with the incremental weighted average units that would have been outstanding assuming all potentially dilutive securities were converted into common units at the earliest date possible.

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.

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 both the three and six months ended June 30, 2016, 194,900 options were excluded from the computation and for the three and six months ended June 30, 2015, 250,700 and 250,800 options were excluded from the computation, as they were anti-dilutive.

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.