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

 

Nine Months Ended September 30,

 

 

 

2016

 

2015

  

2016

  

2015

 

Numerator - Basic and Dilutive

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$
154,039

 

$
117,954

 

$
578,626

 

$
48,199

 

Noncontrolling interests’ share in earnings

 

 
(2,789)

 

 
(2,592)

 

 
(9,540)

 

 
(8,566)

 

Net income attributable to HCP, Inc.

 

 
151,250

 

 
115,362

 

 
569,086

 

 
39,633

 

Participating securities’ share in earnings

 

 
(326)

 

 
(316)

 

 
(977)

 

 
(1,020)

 

Net income applicable to common shares

 

$
150,924

 

$
115,046

 

$
568,109

 

$
38,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 
467,628

 

 
463,337

 

 
466,931

 

 
462,039

 

Dilutive potential common shares - equity awards

 

 
207

 

 
249

 

 
201

 

 
263

 

Diluted weighted average common shares

 

 
467,835

 

 
463,586

 

 
467,132

 

 
462,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$
0.32

 

$
0.25

 

$
1.22

 

$
0.08

 

Diluted

 

$
0.32

 

$
0.25

 

$
1.22

 

$
0.08

 

 

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 1.0 million and 1.2 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, 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 0.1 million and 0.3 million shares of common stock during the three months ended September 30, 2016 and 2015 were not included because they are anti-dilutive. Additionally, during the three months ended September 30, 2016 and 2015, 6 million shares issuable upon conversion of 4 million DownREIT units were not included because they are anti-dilutive.