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Earnings Per Unit of the Operating Partnership (Notes) (Tanger Properties Limited Partnership)
9 Months Ended
Sep. 30, 2011
Tanger Properties Limited Partnership
 
Earnings Per Unit [Text Block]
Earnings Per Unit of the Operating Partnership
The following table sets forth a reconciliation of the numerators and denominators in computing the Operating Partnership's earnings per unit for the three and nine months ended September 30, 2011 and 2011, respectively (in thousands, except per unit amounts):
 
 
Three Months Ended
September 30,
 
Nine Months Ending September 30,
 
 
 
2011
 
2010
 
2011
 
2010
 
Numerator
 
 

 
 
 
 

 
 

 
Income from continuing operations attributable to partners
 
$
14,194

 
$
14,856

 
$
35,853

 
$
23,251

 
Less applicable preferred unit distributions
 
—

 
(1,406
)
 
—

 
(4,219
)
 
Less allocation of earnings to participating securities
 
(164
)
 
(142
)
 
(521
)
 
(454
)
 
Income from continuing operations available to common unitholders of the Operating Partnership
 
14,030

 
13,308

 
35,332

 
18,578

 
Discontinued operations
 
—

 
(103
)
 
—

 
(103
)
 
Net income available to common unitholders of the Operating Partnership
 
$
14,030

 
$
13,205

 
$
35,332

 
$
18,475

 
Denominator
 
 
 
 
 
 
 
 
 
Basic weighted average common units
 
24,248

 
23,090

 
23,512

 
23,074

 
Effect of notional units
 
158

 
—

 
158

 
—

 
Effect of senior exchangeable notes
 
29

 
23

 
29

 
23

 
Effect of outstanding options
 
18

 
21

 
18

 
24

 
Diluted weighted average common units
 
24,453

 
23,134

 
23,717

 
23,121

 
Basic earnings per common unit:
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.58

 
$
0.57

 
$
1.50

 
$
0.80

 
Discontinued operations
 
—

 
—

 
—

 
—

 
Net income
 
$
0.58

 
$
0.57

 
$
1.50

 
$
0.80

 
Diluted earnings per common unit:
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
0.57

 
$
0.57

 
$
1.49

 
$
0.80

 
Discontinued operations
 
—

 
—

 
—

 
—

 
Net income
 
$
0.57

 
$
0.57

 
$
1.49

 
$
0.80

 

The notional units are considered contingently issuable common units and are included in earnings per unit if the effect is dilutive using the treasury stock method.
When the Company issues common shares upon exercise of options or issues restricted share awards, the Operating Partnership issues one corresponding unit to the Company for every four common shares issued. Outstanding senior, exchangeable notes were included in the diluted earnings per unit computation, if the effect was dilutive, using the treasury stock method.  In applying the treasury stock method, the effect was dilutive if the average market price of the Company's common shares for at least 20 trading days in the 30 consecutive trading days at the end of each quarter were higher than the exchange price of $17.83 per common share. There were no outstanding senior, exchangeable notes as of September 30, 2011.
The computation of diluted earnings per unit excludes options to purchase common units when the exercise price is greater than the average market price of the common units for the period.  The market price of a common unit is considered to be equivalent to four times the market price of a Company common share. For the three and nine months ended September 30, 2011, 46,250 options were excluded from the computation. No options were excluded from the computation for the three and nine months ended September 30, 2010.  
The Company's unvested restricted share awards contain non-forfeitable rights to distributions or distribution equivalents. The impact of the unvested restricted unit awards on earnings per unit has been calculated using the two-class method whereby earnings are allocated to the unvested restricted unit awards based on distributions declared and the unvested restricted units' participation rights in undistributed earnings.