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Earnings Per Common Share
 6 Months Ended
Jun. 30, 2015
Earnings Per Common Share  
Earnings Per Common Share

 

NOTE 16.  Earnings Per Common Share

The following table illustrates the computation of basic and diluted earnings per share (in thousands, except per share amounts):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2015

 

2014

  

2015

  

2014

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$
167,748

 

$
222,279

 

$
(69,755)

 

$
456,156

 

Noncontrolling interests’ share in continuing operations

 

 
(2,863)

 

 
(3,394)

 

 
(5,974)

 

 
(6,729)

 

Income (loss) from continuing operations applicable to HCP

 

 
164,885

 

 
218,885

 

 
(75,729)

 

 
449,427

 

Participating securities’ share in continuing operations

 

 
(370)

 

 
(489)

 

 
(704)

 

 
(1,552)

 

Income (loss) from continuing operations applicable to common shares

 

 
164,515

 

 
218,396

 

 
(76,433)

 

 
447,875

 

Discontinued operations

 

 

 —

 

 

 —

 

 

 —

 

 
29,746

 

Noncontrolling interests’ share in discontinued operations

 

 

 —

 

 

 —

 

 

 —

 

 
(1,177)

 

Net income (loss) applicable to common shares

 

$
164,515

 

$
218,396

 

$
(76,433)

 

$
476,444

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 
461,874

 

 
458,247

 

 
461,380

 

 
457,773

 

Dilutive potential common shares

 

 
232

 

 
341

 

 

 —

 

 
361

 

Diluted weighted average common shares

 

 
462,106

 

 
458,588

 

 
461,380

 

 
458,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$
0.36

 

$
0.48

 

$
(0.17)

 

$
0.98

 

Discontinued operations

 

 

 —

 

 

 —

 

 

 —

 

 
0.06

 

Net income (loss) applicable to common shares

 

$
0.36

 

$
0.48

 

$
(0.17)

 

$
1.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) income from continuing operations

 

$
0.36

 

$
0.48

 

$
(0.17)

 

$
0.98

 

Discontinued operations

 

 

 —

 

 

 —

 

 

 —

 

 
0.06

 

Net income (loss) applicable to common shares

 

$
0.36

 

$
0.48

 

$
(0.17)

 

$
1.04

 

 

Restricted stock and certain of the Company’s performance restricted stock units are considered participating securities, because dividend payments are not forfeited even if the underlying award does not vest, which requires the use of the two-class method when computing basic and diluted earnings per share. Options to purchase approximately 0.9 million and 1.4 million shares of common stock that had an exercise price (including deferred compensation expense) in excess of the average closing market price of the Company’s common stock during the three months ended June 30, 2015 and 2014, respectively, were not included in the Company’s earnings per share calculations because they are anti-dilutive. Restricted stock and performance restricted stock units representing 0.4 million and 0.2 million shares of common stock during the three months ended June 30, 2015 and 2014, respectively, were not included because they are anti-dilutive. Additionally, 6 million shares issuable upon conversion of 4 million DownREIT units during the three months ended June 30, 2015 and 2014 were not included because they are anti-dilutive.