
10.	Earning Per Share and Earnings Per Unit

Equity Residential

The following tables set forth the computation of net income per share – basic and net income per share – diluted for the Company (amounts in thousands except per share amounts):



	Nine Months Ended September 30,						Quarter Ended September 30,
	2013			2012			2013			2012
Numerator for net income per share – basic:
(Loss) income from continuing operations	$	(234,414	)	$	62,103		$	(12,467	)	$	92,181
Allocation to Noncontrolling Interests – Operating Partnership, net	9,402			(2,128		)	483			(3,895		)
Net loss (income) attributable to Noncontrolling Interests – Partially Owned Properties	1,101			(457		)	311			312
Preferred distributions	(3,109		)	(9,319		)	(1,037		)	(2,386		)
Premium on redemption of Preferred Shares	—			(5,150		)	—			(5,150		)
(Loss) income from continuing operations available to Common Shares, net of Noncontrolling Interests	(227,020		)	45,049			(12,710		)	81,062
Discontinued operations, net of Noncontrolling Interests	1,943,548			415,184			388,865			137,541
Numerator for net income per share – basic	$	1,716,528		$	460,233		$	376,155		$	218,603
Numerator for net income per share – diluted (1):
(Loss) income from continuing operations				$	62,103					$	92,181
Net loss (income) attributable to Noncontrolling Interests – Partially Owned Properties				(457		)				312
Preferred distributions				(9,319		)				(2,386		)
Premium on redemption of Preferred Shares				(5,150		)				(5,150		)
(Loss) income from continuing operations available to Common Shares				47,177						84,957
Discontinued operations, net				434,702						144,142
Numerator for net income per share – diluted (1)	$	1,716,528		$	481,879		$	376,155		$	229,099
Denominator for net income per share – basic and diluted (1):
Denominator for net income per share – basic	352,414			300,116			359,811			301,336
Effect of dilutive securities:
OP Units				13,816						14,177
Long-term compensation shares/units				3,333						3,260
Denominator for net income per share – diluted (1)	352,414			317,265			359,811			318,773
Net income per share – basic	$	4.87		$	1.53		$	1.05		$	0.73
Net income per share – diluted	$	4.87		$	1.52		$	1.05		$	0.72
Net income per share – basic:
(Loss) income from continuing operations available to Common Shares, net of Noncontrolling Interests	$	(0.644	)	$	0.150		$	(0.035	)	$	0.269
Discontinued operations, net of Noncontrolling Interests	5.515			1.384			1.080			0.456
Net income per share – basic	$	4.871		$	1.534		$	1.045		$	0.725
Net income per share – diluted (1):
(Loss) income from continuing operations available to Common Shares	$	(0.644	)	$	0.149		$	(0.035	)	$	0.267
Discontinued operations, net	5.515			1.370			1.080			0.452
Net income per share – diluted	$	4.871		$	1.519		$	1.045		$	0.719


(1)	Potential common shares issuable from the assumed conversion of OP Units and the exercise/vesting of long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per share calculation as the Company had a loss from continuing operations for the nine months and quarters ended September 30, 2013.

ERP Operating Limited Partnership

The following tables set forth the computation of net income per Unit – basic and net income per Unit – diluted for the Operating Partnership (amounts in thousands except per Unit amounts):



	Nine Months Ended September 30,						Quarter Ended September 30,
	2013			2012			2013			2012
Numerator for net income per Unit – basic and diluted (1):
(Loss) income from continuing operations	$	(234,414	)	$	62,103		$	(12,467	)	$	92,181
Net loss (income) attributable to Noncontrolling Interests – Partially Owned Properties	1,101			(457		)	311			312
Allocation to Preference Units	(3,109		)	(9,319		)	(1,037		)	(2,386		)
Allocation to premium on redemption of Preference Units	—			(5,150		)	—			(5,150		)
(Loss) income from continuing operations available to Units	(236,422		)	47,177			(13,193		)	84,957
Discontinued operations, net	2,023,897			434,702			404,184			144,142
Numerator for net income per Unit – basic and diluted (1)	$	1,787,475		$	481,879		$	390,991		$	229,099
Denominator for net income per Unit – basic and diluted (1):
Denominator for net income per Unit – basic	366,150			313,932			373,547			315,513
Effect of dilutive securities:
Dilution for Units issuable upon assumed exercise/vesting of the Company's long-term compensation shares/units				3,333						3,260
Denominator for net income per Unit – diluted (1)	366,150			317,265			373,547			318,773
Net income per Unit – basic	$	4.87		$	1.53		$	1.05		$	0.73
Net income per Unit – diluted	$	4.87		$	1.52		$	1.05		$	0.72
Net income per Unit – basic:
(Loss) income from continuing operations available to Units	$	(0.644	)	$	0.150		$	(0.035	)	$	0.269
Discontinued operations, net	5.515			1.384			1.080			0.456
Net income per Unit – basic	$	4.871		$	1.534		$	1.045		$	0.725
Net income per Unit – diluted (1):
(Loss) income from continuing operations available to Units	$	(0.644	)	$	0.149		$	(0.035	)	$	0.267
Discontinued operations, net	5.515			1.370			1.080			0.452
Net income per Unit – diluted	$	4.871		$	1.519		$	1.045		$	0.719


(1)	Potential Units issuable from the assumed exercise/vesting of the Company's long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per Unit calculation as the Operating Partnership had a loss from continuing operations for the nine months and quarters ended September 30, 2013.