Earnings Per Common Share

12 Months Ended

Dec. 31, 2015

NOTE 19. Earnings Per Common Share

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


	Year Ended December 31,
	2015		2014		2013
Numerator
(Loss) income from continuing operations	$	(546,418)	$	906,845	$	910,633
Noncontrolling interests’ share in continuing operations		(12,817)		(13,181)		(14,110)
(Loss) income from continuing operations applicable to HCP, Inc.		(559,235)		893,664		896,523
Participating securities’ share in continuing operations		(1,317)		(2,437)		(1,734)
(Loss) income from continuing operations applicable to common shares		(560,552)		891,227		894,789
Discontinued operations		—		29,746		74,373
Noncontrolling interests’ share in discontinued operations		—		(1,177)		(59)
Net (loss) income applicable to common shares	$	(560,552)	$	919,796	$	969,103
Denominator
Basic weighted average common shares		462,795		458,425		455,002
Dilutive potential common shares		—		371		700
Diluted weighted average common shares		462,795		458,796		455,702
Basic earnings per common share
(Loss) income from continuing operations	$	(1.21)	$	1.94	$	1.97
Discontinued operations		—		0.07		0.16
Net (loss) income applicable to common stockholders	$	(1.21)	$	2.01	$	2.13
Diluted earnings per common share
(Loss) income from continuing operations	$	(1.21)	$	1.94	$	1.97
Discontinued operations		—		0.06		0.16
Net (loss) income applicable to common shares	$	(1.21)	$	2.00	$	2.13

Restricted stock and certain performance restricted stock units are considered participating securities, because dividend payments are not forfeited even if the underlying share-based award does not vest, and require the use of the two-class method when computing basic and diluted earnings per share.

For the year ended December 31, 2015, the Company generated a net loss. The weighted-average basic shares outstanding was used in calculating diluted loss per share from continuing operations, as using diluted shares would be anti-dilutive to loss per share. Options to purchase approximately 1.4 million and 800,000 shares of common stock that had exercise prices in excess of the average market price of the common stock during the years ended December 31, 2014 and 2013, respectively, were not included because they are anti-dilutive. Additionally, six million shares issuable upon conversion of four million DownREIT units during the years ended December 31, 2014 and 2013 were not included because they are anti-dilutive.