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Earnings Per Common Share
 9 Months Ended
Sep. 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 September 30,

 

Nine Months Ended September 30,

 

 

 

2015

 

2014

  

2015

  

2014

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
117,954

 

$
251,059

 

$
48,199

 

$
707,215

 

Noncontrolling interests’ share in continuing operations

 

 
(2,592)

 

 
(3,405)

 

 
(8,566)

 

 
(10,134)

 

Income from continuing operations applicable to HCP

 

 
115,362

 

 
247,654

 

 
39,633

 

 
697,081

 

Participating securities’ share in continuing operations

 

 
(316)

 

 
(446)

 

 
(1,020)

 

 
(1,999)

 

Income from continuing operations applicable to common shares

 

 
115,046

 

 
247,208

 

 
38,613

 

 
695,082

 

Discontinued operations

 

 

 —

 

 

 —

 

 

 —

 

 
29,746

 

Noncontrolling interests’ share in discontinued operations

 

 

 —

 

 

 —

 

 

 —

 

 
(1,177)

 

Net income applicable to common shares

 

$
115,046

 

$
247,208

 

$
38,613

 

$
723,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 
463,337

 

 
458,799

 

 
462,039

 

 
458,119

 

Dilutive potential common shares

 

 
249

 

 
342

 

 
263

 

 
354

 

Diluted weighted average common shares

 

 
463,586

 

 
459,141

 

 
462,302

 

 
458,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
0.25

 

$
0.54

 

$
0.08

 

$
1.52

 

Discontinued operations

 

 

 —

 

 

 —

 

 

 —

 

 
0.06

 

Net income applicable to common shares

 

$
0.25

 

$
0.54

 

$
0.08

 

$
1.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
0.25

 

$
0.54

 

$
0.08

 

$
1.52

 

Discontinued operations

 

 

 —

 

 

 —

 

 

 —

 

 
0.06

 

Net income applicable to common shares

 

$
0.25

 

$
0.54

 

$
0.08

 

$
1.58

 

 

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 1.2 million and 1.1 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 September 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 0.3 million and 0.1 million shares of common stock during the three months ended September 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 September 30, 2015 and 2014 were not included because they are anti-dilutive.