Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Unit of the Operating Partnership

v3.7.0.1
Earnings Per Unit of the Operating Partnership
3 Months Ended
Mar. 31, 2017
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 March 31,
 
 
2017
 
2016
Numerator:
 
 

 
 
Net income attributable to partners of the Operating Partnership
 
$
23,514

 
$
28,594

Less allocation of earnings to participating securities
 
(295
)
 
(294
)
Net income available to common unitholders of the Operating Partnership
 
$
23,219

 
$
28,300

Denominator:
 
 
 
 
Basic weighted average common units
 
100,273

 
99,997

Effect of outstanding options and certain restricted common units
 
66

 
59

Diluted weighted average common units
 
100,339

 
100,056

Basic earnings per common unit:
 
 
 
 
Net income
 
$
0.23

 
$
0.28

Diluted earnings per common unit:
 
 
 
 
Net income
 
$
0.23

 
$
0.28



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 and the common shares would be issuable if the end of the reporting period were the end of the contingency period. For the three months ended March 31, 2017 and 2016, 871,116 and 866,200 units were excluded from the computation, respectively, because these units either would not have been issuable if the end of the reporting period were the end of the contingency period or as they were anti-dilutive.

The effect of dilutive common units 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 units at the average market price during the period. The market price of a common unit is considered to be equivalent to the market price of a Company common share. For the three months ended March 31, 2017 and 2016, there were 177,700 and 218,200 options excluded from the computation, respectively, 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.