
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):



	Quarter Ended March 31,
	2014			2013
Numerator for net income per share – basic:
Income (loss) from continuing operations	$	81,698		$	(165,339	)
Allocation to Noncontrolling Interests – Operating Partnership, net	(3,053		)	6,836
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties	(504		)	(25		)
Preferred distributions	(1,036		)	(1,036		)
Income (loss) from continuing operations available to Common Shares, net of Noncontrolling Interests	77,105			(159,564		)
Discontinued operations, net of Noncontrolling Interests	994			1,176,214
Numerator for net income per share – basic	$	78,099		$	1,016,650
Numerator for net income per share – diluted (1):
Income from continuing operations	$	81,698
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties	(504		)
Preferred distributions	(1,036		)
Income from continuing operations available to Common Shares	80,158
Discontinued operations, net	1,034
Numerator for net income per share – diluted (1)	$	81,192		$	1,016,650
Denominator for net income per share – basic and diluted (1):
Denominator for net income per share – basic	360,470			337,532
Effect of dilutive securities:
OP Units	13,731
Long-term compensation shares/units	2,183
Denominator for net income per share – diluted (1)	376,384			337,532
Net income per share – basic	$	0.22		$	3.01
Net income per share – diluted	$	0.22		$	3.01
Net income per share – basic:
Income (loss) from continuing operations available to Common Shares, net of Noncontrolling Interests	$	0.214		$	(0.473	)
Discontinued operations, net of Noncontrolling Interests	0.003			3.485
Net income per share – basic	$	0.217		$	3.012
Net income per share – diluted (1):
Income (loss) from continuing operations available to Common Shares	$	0.213		$	(0.473	)
Discontinued operations, net	0.003			3.485
Net income per share – diluted	$	0.216		$	3.012


(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 quarter ended March 31, 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):



	Quarter Ended March 31,
	2014			2013
Numerator for net income per Unit – basic and diluted (1):
Income (loss) from continuing operations	$	81,698		$	(165,339	)
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties	(504		)	(25		)
Allocation to Preference Units	(1,036		)	(1,036		)
Income (loss) from continuing operations available to Units	80,158			(166,400		)
Discontinued operations, net	1,034			1,226,373
Numerator for net income per Unit – basic and diluted (1)	$	81,192		$	1,059,973
Denominator for net income per Unit – basic and diluted (1):
Denominator for net income per Unit - basic	374,201			351,255
Effect of dilutive securities:
Dilution for Units issuable upon assumed exercise/vesting of the Company’s long-term compensation shares/units	2,183
Denominator for net income per Unit – diluted (1)	376,384			351,255
Net income per Unit – basic	$	0.22		$	3.01
Net income per Unit – diluted	$	0.22		$	3.01
Net income per Unit – basic:
Income (loss) from continuing operations available to Units	$	0.214		$	(0.473	)
Discontinued operations, net	0.003			3.485
Net income per Unit – basic	$	0.217		$	3.012
Net income per Unit – diluted (1):
Income (loss) from continuing operations available to Units	$	0.213		$	(0.473	)
Discontinued operations, net	0.003			3.485
Net income per Unit – diluted	$	0.216		$	3.012


(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 quarter ended March 31, 2013.