Quarterly report pursuant to Section 13 or 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)
 6 Months Ended
Jun. 30, 2012
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 the Operating Partnership's earnings per unit (in thousands, except per unit data):
 
 
Three Months Ended
June 30,
 
Six Months Ending June 30,
 
 
2012
 
2011
 
2012
 
2011
Numerator
 
 

 
 
 
 

 
 

Net income attributable to partners of the Operating Partnership
 
$
12,483

 
$
10,842

 
$
21,324

 
$
21,659

Less allocation of earnings to participating securities
 
(209
)
 
(165
)
 
(367
)
 
(357
)
Net income available to common unitholders of the Operating Partnership
 
$
12,274

 
$
10,677

 
$
20,957

 
$
21,302

Denominator
 
 
 
 
 
 
 
 
Basic weighted average common units
 
24,428

 
23,154

 
24,405

 
23,138

Effect of notional units
 
254

 
104

 
252

 
104

Effect of senior exchangeable notes
 
—

 
32

 
—

 
32

Effect of outstanding options
 
21

 
19

 
19

 
19

Diluted weighted average common units
 
24,703

 
23,309

 
24,676

 
23,293

Basic earnings per common unit:
 
 
 
 
 
 
 
 
Net income
 
$
0.50

 
$
0.46

 
$
0.86

 
$
0.92

Diluted earnings per common unit:
 
 
 
 
 
 
 
 
Net income
 
$
0.50

 
$
0.46

 
$
0.85

 
$
0.91


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 issues restricted share awards, the Operating Partnership issues one 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 was 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 June 30, 2012.
The computation of diluted earnings per unit excludes units that would be issued upon the exercise of options to purchase the Company's common shares when the exercise price is greater than the average market price of the Company's common shares for the period. For the three months ended June 30, 2012 and 2011, 43,025 and 46,250 units, respectively, which would be issued upon the exercise of outstanding options, were excluded from the computation. For the six months ended June 30, 2012 and 2011, 43,050 and 46,250 units, respectively, 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 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.