
10.	Earnings 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):



	Year Ended December 31,
	2014			2013			2012
Numerator for net income per share – basic:
Income (loss) from continuing operations	$	657,101		$	(168,174	)	$	160,298
Allocation to Noncontrolling Interests – Operating Partnership, net	(24,771		)	6,834			(6,417		)
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties	(2,544		)	538			(844		)
Preferred distributions	(4,145		)	(4,145		)	(10,355		)
Premium on redemption of Preferred Shares	—			—			(5,152		)
Income (loss) from continuing operations available to Common Shares, net of Noncontrolling Interests	625,641			(164,947		)	137,530
Discontinued operations, net of Noncontrolling Interests	1,522			1,991,415			688,682
Numerator for net income per share – basic	$	627,163		$	1,826,468		$	826,212
Numerator for net income per share – diluted (1):
Income from continuing operations	$	657,101					$	160,298
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties	(2,544		)				(844		)
Preferred distributions	(4,145		)				(10,355		)
Premium on redemption of Preferred Shares	—						(5,152		)
Income from continuing operations available to Common Shares	650,412						143,947
Discontinued operations, net	1,582						720,906
Numerator for net income per share – diluted (1)	$	651,994		$	1,826,468		$	864,853
Denominator for net income per share – basic and diluted (1):
Denominator for net income per share – basic	361,181			354,305			302,701
Effect of dilutive securities:
OP Units	13,718						13,853
Long-term compensation shares/units	2,836						3,212
Denominator for net income per share – diluted (1)	377,735			354,305			319,766
Net income per share – basic	$	1.74		$	5.16		$	2.73
Net income per share – diluted	$	1.73		$	5.16		$	2.70
Net income per share – basic:
Income (loss) from continuing operations available to Common Shares, net of Noncontrolling Interests	$	1.732		$	(0.466	)	$	0.454
Discontinued operations, net of Noncontrolling Interests	0.004			5.621			2.275
Net income per share – basic	$	1.736		$	5.155		$	2.729
Net income per share – diluted (1):
Income (loss) from continuing operations available to Common Shares	$	1.722		$	(0.466	)	$	0.450
Discontinued operations, net	0.004			5.621			2.255
Net income per share – diluted	$	1.726		$	5.155		$	2.705


(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 year ended December 31, 2013.

For additional disclosures regarding the employee share options and restricted shares, see Notes 2 and 12.

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):



	Year Ended December 31,
	2014			2013			2012
Numerator for net income per Unit – basic and diluted (1):
Income (loss) from continuing operations	$	657,101		$	(168,174	)	$	160,298
Net (income) loss attributable to Noncontrolling Interests – Partially Owned Properties	(2,544		)	538			(844		)
Allocation to Preference Units	(4,145		)	(4,145		)	(10,355		)
Allocation to premium on redemption of Preference Units	—			—			(5,152		)
Income (loss) from continuing operations available to Units	650,412			(171,781		)	143,947
Discontinued operations, net	1,582			2,073,527			720,906
Numerator for net income per Unit – basic and diluted (1)	$	651,994		$	1,901,746		$	864,853
Denominator for net income per Unit – basic and diluted (1):
Denominator for net income per Unit – basic	374,899			368,038			316,554
Effect of dilutive securities:
Dilution for Units issuable upon assumed exercise/vesting of the Company's long-term compensation shares/units	2,836						3,212
Denominator for net income per Unit – diluted (1)	377,735			368,038			319,766
Net income per Unit – basic	$	1.74		$	5.16		$	2.73
Net income per Unit – diluted	$	1.73		$	5.16		$	2.70
Net income per Unit – basic:
Income (loss) from continuing operations available to Units	$	1.732		$	(0.466	)	$	0.454
Discontinued operations, net	0.004			5.621			2.275
Net income per Unit – basic	$	1.736		$	5.155		$	2.729
Net income per Unit – diluted (1):
Income (loss) from continuing operations available to Units	$	1.722		$	(0.466	)	$	0.450
Discontinued operations, net	0.004			5.621			2.255
Net income per Unit – diluted	$	1.726		$	5.155		$	2.705


(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 year ended December 31, 2013.

For additional disclosures regarding the employee share options and restricted shares, see Notes 2 and 12.