Annual report pursuant to Section 13 and 15(d)

Earnings Per Share of the Company

v3.6.0.2
Earnings Per Share of the Company
12 Months Ended
Dec. 31, 2016
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 earnings per share for the years ended December 31, 2016, 2015 and 2014 (in thousands, except per share amounts):
 
 
2016
 
2015
 
2014
Numerator
 
 
 
 
 
 
Net income attributable to Tanger Factory Outlet Centers, Inc.
 
$
193,744

 
$
211,200

 
$
74,011

Less allocation of earnings to participating securities
 
(1,926
)
 
(2,408
)
 
(1,872
)
Net income available to common shareholders of Tanger Factory Outlet Centers, Inc.
 
$
191,818

 
$
208,792

 
$
72,139

Denominator
 
 
 
 
 
 
Basic weighted average common shares
 
95,102

 
94,698

 
93,769

Effect of notional units
 
175

 

 

Effect of outstanding options and certain restricted common shares
 
68

 
61

 
70

Diluted weighted average common shares
 
95,345

 
94,759

 
93,839

Basic earnings per common share:
 
 
 
 
 
 
Net income
 
$
2.02

 
$
2.20

 
$
0.77

Diluted earnings per common share:
 
 
 
 
 
 
Net income
 
$
2.01

 
$
2.20

 
$
0.77



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

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 and the common shares would be issuable if the end of the reporting period were the end of the contingency period. For the years ended December 31, 2016, 2015, and 2014, 501,446, 859,450 and 644,850 units were excluded from the computation, respectively, because these units would not have been issuable if the end of the reporting period were the end of the contingency period. 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 effect of dilutive common shares is determined using the treasury stock method whereby outstanding options are assumed exercised at the beginning of the reporting period and the exercise proceeds from such options and the average measured but unrecognized compensation cost during the period are assumed to be used to repurchase our common shares at the average market price during the period. For the years ended December 31, 2016, 2015 and 2014, 141,300, 227,400 and 259,000 options were excluded from the computation, respectively, 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.