Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Unit of the Operating Partnership

v2.4.0.8
Earnings Per Unit of the Operating Partnership (Tanger Properties Limited Partnership [Member])
 9 Months Ended
Sep. 30, 2013
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 the Operating Partnership's earnings per unit (in thousands, except per unit amounts). Note that all per unit amounts reflect a four-for-one split of the Operating Partnership's units.
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2013
 
2012
 
2013
 
2012
Numerator
 
 

 
 
 
 

 
 

Net income attributable to partners of the Operating Partnership
 
$
56,081

 
$
16,163

 
$
90,056

 
$
37,487

Less allocation of earnings to participating securities
 
(609
)
 
(209
)
 
(933
)
 
(576
)
Net income available to common unitholders of the Operating Partnership
 
$
55,472

 
$
15,954

 
$
89,123

 
$
36,911

Denominator
 
 
 
 
 
 
 
 
Basic weighted average common units
 
98,246

 
97,727

 
98,072

 
97,656

Effect of notional units
 
856

 
879

 
841

 
865

Effect of outstanding options and restricted common units
 
76

 
93

 
91

 
78

Diluted weighted average common units
 
99,178

 
98,699

 
99,004

 
98,599

Basic earnings per common unit:
 
 
 
 
 
 
 
 
Net income
 
$
0.56

 
$
0.16

 
$
0.91

 
$
0.38

Diluted earnings per common unit:
 
 
 
 
 
 
 
 
Net income
 
$
0.56

 
$
0.16

 
$
0.90

 
$
0.37



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 issues restricted share awards, the Operating Partnership issues one corresponding unit to the Company for each Company common share issued.

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 the market price of a Company common share. For the three months ended September 30, 2013 and 2012 no units were excluded from the computation. For the nine months ended September 30, 2013, 200 units were excluded from the computation and for the nine months ended September 30, 2012, 167,800 units, which would be issued upon the exercise of outstanding options, were excluded from the computation.

Certain of the Company's unvested restricted common share awards contain non-forfeitable rights to distributions or distribution equivalents. The impact of these unvested restricted share awards on earnings per unit has been calculated using the two-class method whereby earnings are allocated to the unvested restricted share awards based on distributions declared and the unvested restricted shares awards' 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 unit compilation if the effect is dilutive, using the treasury stock method.