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Earnings Per Common Share
 6 Months Ended
Jun. 30, 2016
Earnings Per Common Share  
Earnings Per Common Share

 

NOTE 14.  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,

 

 

 

2016

 

2015

  

2016

  

2015

 

Numerator - Basic

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$
304,842

 

$
167,748

 

$
424,587

 

$
(69,755)

 

Noncontrolling interests’ share in earnings

 

 
(3,125)

 

 
(2,863)

 

 
(6,751)

 

 
(5,974)

 

Net income (loss) attributable to HCP, Inc.

 

 
301,717

 

 
164,885

 

 
417,836

 

 
(75,729)

 

Participating securities’ share in earnings

 

 
(342)

 

 
(370)

 

 
(651)

 

 
(704)

 

Net income (loss) applicable to common shares

 

$
301,375

 

$
164,515

 

$
417,185

 

$
(76,433)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator - Dilutive

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) applicable to common shares

 

$
301,375

 

$
164,515

 

$
417,185

 

$
(76,433)

 

Add: distributions on dilutive convertible units

 

 
2,388

 

 

 —

 

 

 —

 

 

 —

 

Dilutive net income (loss) available to common shares

 

$
303,763

 

$
164,515

 

$
417,185

 

$
(76,433)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 
467,084

 

 
461,874

 

 
466,579

 

 
461,380

 

Dilutive potential common shares - equity awards

 

 
208

 

 
232

 

 
198

 

 

 —

 

Dilutive potential common shares - DownREIT units

 

 
4,133

 

 

 —

 

 

 —

 

 

 —

 

Diluted weighted average common shares

 

 
471,425

 

 
462,106

 

 
466,777

 

 
461,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$
0.65

 

$
0.36

 

$
0.89

 

$
(0.17)

 

Diluted

 

$
0.64

 

 
0.36

 

$
0.89

 

$
(0.17)

 

 

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 0.9 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, 2016 and 2015, 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 shares of common stock during the three months ended June 30, 2016 and 2015 were not included because they are anti-dilutive. Additionally, 1.7 million shares issuable upon conversion of 1.7 million DownREIT units during the three months ended June 30, 2016 were not included because they are anti-dilutive. During the three months ended June 30 2015, 6 million shares issuable upon conversion of 4 million DownREIT units were not included because they are anti-dilutive.