Quarterly report pursuant to Section 13 or 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)
 6 Months Ended
Jun. 30, 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 the Company's earnings per share for the three and six months ended June 30, 2011 and 2010, respectively (in thousands, except per share amounts):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
 
 
2011
 
2010
 
2011
 
2010
 
Numerator
 
 
 
 
 
 
 
 
 
Income from continuing operations attributable to the Company
 
$
9,422

 
$
4,869

 
$
18,820

 
$
7,661

 
Less applicable preferred share dividends
 
—

 
(1,407
)
 
—

 
(2,813
)
 
Less allocation of earnings to participating securities
 
(165
)
 
(143
)
 
(357
)
 
(312
)
 
Income from continuing operations available to common shareholders of the Company
 
9,257

 
3,319

 
18,463

 
4,536

 
Discontinued operations attributable to the Company
 
—

 
(1
)
 
—

 
—

 
Net income available to common shareholders of the Company
 
$
9,257

 
$
3,318

 
$
18,463

 
$
4,536

 
Denominator
 
 
 
 
 
 
 
 
 
Basic weighted average common shares
 
80,483

 
80,206

 
80,418

 
80,133

 
Effect of notional units
 
416

 
—

 
416

 
—

 
Effect of senior exchangeable notes
 
131

 
51

 
131

 
51

 
Effect of outstanding options
 
74

 
86

 
74

 
98

 
Diluted weighted average common shares
 
81,104

 
80,343

 
81,039

 
80,282

 
Basic earnings per common share:
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.11

 
$
0.04

 
$
0.23

 
$
0.06

 
Discontinued operations
 
—

 
—

 
—

 
—

 
Net income
 
$
0.11

 
$
0.04

 
$
0.23

 
$
0.06

 
Diluted earnings per common share:
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.11

 
$
0.04

 
$
0.23

 
$
0.06

 
Discontinued operations
 
—

 
—

 
—

 
—

 
Net income
 
$
0.11

 
$
0.04

 
$
0.23

 
$
0.06

 

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.
The senior, exchangeable notes are included in the diluted earnings per share computation, if the effect is dilutive, using the treasury stock method.  In applying the treasury stock method, the effect will be 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 is higher than the exchange price of $17.83 per share.
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 three and six months ended June 30, 2011, respectively, 185,000 options were excluded from the computation. No options were excluded from the computation for the three and six months ended June 30, 2010.  The assumed exchange of the partnership units held by the noncontrolling interest limited partner 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.