Annual report pursuant to Section 13 and 15(d)

Earnings Per Unit of the Operating Partnership (Notes)

v2.4.0.6
Earnings Per Unit of the Operating Partnership (Notes) (Tanger Properties Limited Partnership)
 12 Months Ended
Dec. 31, 2011
Tanger Properties Limited Partnership
  
Earnings Per Unit [Text Block]
Earnings Per Unit of the Operating Partnership

The following table sets forth a reconciliation of the numerators and denominators in computing earnings per unit for the years ended December 31, 2011, 2010 and 2009 (in thousands, except per unit amounts):
 
 
2011
 
2010
 
2009
NUMERATOR
 
 
 
 
 
 
Income from continuing operations available to partners of the Operating Partnership
 
$
50,997

 
$
38,342

 
$
72,709

Applicable preferred unit distributions
 
—

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

 
(2,539
)
 
—

Allocation of earnings to participating securities
 
(684
)
 
(598
)
 
(747
)
Income from continuing operations available to common unitholders of the Operating Partnership
 
50,313

 
29,908

 
66,337

Allocation of earnings to discontinued operations
 
—

 
—

 
46

Discontinued operations
 
—

 
(98
)
 
(5,214
)
Net income available to common unitholders of the Operating Partnership
 
$
50,313

 
$
29,810

 
$
61,169

DENOMINATOR
 
 
 
 
 
 
Basic weighted average common units
 
23,723

 
23,080

 
20,991

Effect of notional units
 
241

 
—

 
—

Effect of exchangeable notes
 
23

 
28

 
9

Effect of outstanding options
 
18

 
23

 
39

Diluted weighted average common units
 
24,005

 
23,131

 
21,039

 
 
 
 
 
 
 
Basic earnings per common unit:
 
 
 
 
 
 
Income from continuing operations
 
$
2.12

 
$
1.29

 
$
3.16

Discontinued operations
 
—

 
—

 
(0.25
)
Net income
 
$
2.12

 
$
1.29

 
$
2.91

 
 
 
 
 
 
 
Diluted earnings per common unit:
 
 
 
 
 
 
Income from continuing operations
 
$
2.10

 
$
1.29

 
$
3.15

Discontinued operations
 
—

 
—

 
(0.24
)
Net income
 
$
2.10

 
$
1.29

 
$
2.91


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.
When the Company issues common shares upon exercise of options or issuance of restricted share awards, the Operating Partnership issues a corresponding unit to the Company for every four common shares issued. Outstanding senior, exchangeable notes were included in the diluted earnings per unit computation, if the effect is dilutive, using the treasury stock method.  In applying the treasury stock method, the effect was dilutive if the average market price of the Company's 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 common share. There were no outstanding senior, exchangeable notes as of December 31, 2011.
 
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 four times the market price of a Company common share. For the year ended December 31, 2011, 45,875 options were excluded from the computation. No options were excluded from the computation for the years ended December 31, 2010 and 2009, respectively.

The Company's unvested restricted share awards contain non-forfeitable rights to distributions or distribution equivalents. The impact of the 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.