Annual report pursuant to Section 13 and 15(d)

Earnings Per Share of the Company (Notes)

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Earnings Per Share of the Company (Notes) (Tanger Factory Outlet Centers, Inc)
 12 Months Ended
Dec. 31, 2011
Tanger Factory Outlet Centers, Inc
  
Earnings Per Share [Text Block]
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, 2011, 2010 and 2009 (in thousands, except per share amounts). Note that per share amounts reflect a two-for-one split of the Company's common shares in January 2011.
 
 
2011
 
2010
 
2009
NUMERATOR
 
 
 
 
 
 
Income from continuing operations attributable to the Company
 
$
44,641

 
$
34,334

 
$
62,445

Applicable preferred share dividends
 
—

 
(5,297
)
 
(5,625
)
Original issuance costs related to redeemed preferred shares
 
—

 
(2,539
)
 
—

Allocation of earnings to participating securities
 
(684
)
 
(598
)
 
(741
)
Income from continuing operations available to common shareholders of the Company
 
43,957

 
25,900

 
56,079

Discontinued operations attributable to participating securities
 
—

 
—

 
40

Discontinued operations attributable to the Company
 
—

 
(85
)
 
(4,426
)
Net income available to common shareholders of the Company
 
$
43,957

 
$
25,815

 
$
51,693

DENOMINATOR
 
 
 
 
 
 
Basic weighted average common shares
 
83,000

 
80,187

 
71,832

Effect of notional units
 
965

 
—

 
—

Effect of exchangeable notes
 
93

 
112

 
37

Effect of outstanding options
 
71

 
91

 
155

Diluted weighted average common shares
 
84,129

 
80,390

 
72,024

 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
Income from continuing operations
 
$
0.53

 
$
0.32

 
$
0.78

Discontinued operations
 
—

 
—

 
(0.06
)
Net income
 
$
0.53

 
$
0.32

 
$
0.72

 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
Income from continuing operations
 
$
0.52

 
$
0.32

 
$
0.78

Discontinued operations
 
—

 
—

 
(0.06
)
Net income
 
$
0.52

 
$
0.32

 
$
0.72


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.
Outstanding senior, exchangeable notes were included in the diluted earnings per share computation, if the effect was dilutive, using the treasury stock method. In applying the treasury stock method, the effect was dilutive if the average market price of our common shares for at least 20 trading days in the 30 consecutive trading days at the end of each quarter were higher than the exchange price, which prior to redemption was $17.83 per share. There were no outstanding senior, exchangeable notes as of December 31, 2011.
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 year ended December 31, 2011, 183,500 options were excluded from the computation. No options were excluded from the computation for the years ended December 31, 2010 and 2009, respectively. The assumed exchange of the partnership units held by the noncontrolling interest limited partners 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 partnership unit, as if exchanged, is equivalent to earnings allocated to a common share.
The Company's unvested restricted share awards contain non-forfeitable rights to dividends or dividend equivalents. The impact of the unvested restricted share awards on earnings per share has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on dividends declared and the unvested restricted shares' participation rights in undistributed earnings.