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,
	2016			2015
Numerator for net income per share – basic:
Income from continuing operations	$	3,731,988		$	190,069
Allocation to Noncontrolling Interests – Operating Partnership, net	(143,315		)	(7,053		)
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties	(764		)	(643		)
Preferred distributions	(773		)	(891		)
Premium on redemption of Preferred Shares	—			(2,789		)
Income from continuing operations available to Common Shares, net of Noncontrolling Interests	3,587,136			178,693
Discontinued operations, net of Noncontrolling Interests	(151		)	149
Numerator for net income per share – basic	$	3,586,985		$	178,842
Numerator for net income per share – diluted:
Income from continuing operations	$	3,731,988		$	190,069
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties	(764		)	(643		)
Preferred distributions	(773		)	(891		)
Premium on redemption of Preferred Shares	—			(2,789		)
Income from continuing operations available to Common Shares	3,730,451			185,746
Discontinued operations, net	(157		)	155
Numerator for net income per share – diluted	$	3,730,294		$	185,901
Denominator for net income per share – basic and diluted:
Denominator for net income per share – basic	364,592			363,098
Effect of dilutive securities:
OP Units	13,697			13,598
Long-term compensation shares/units	3,954			3,631
Denominator for net income per share – diluted	382,243			380,327
Net income per share – basic	$	9.84		$	0.49
Net income per share – diluted	$	9.76		$	0.49
Net income per share – basic:
Income from continuing operations available to Common Shares, net of Noncontrolling Interests	$	9.84		$	0.49
Discontinued operations, net of Noncontrolling Interests	—			—
Net income per share – basic	$	9.84		$	0.49
Net income per share – diluted:
Income from continuing operations available to Common Shares	$	9.76		$	0.49
Discontinued operations, net	—			—
Net income per share – diluted	$	9.76		$	0.49

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,
	2016			2015
Numerator for net income per Unit – basic and diluted:
Income from continuing operations	$	3,731,988		$	190,069
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties	(764		)	(643		)
Allocation to Preference Units	(773		)	(891		)
Allocation to premium on redemption of Preference Units	—			(2,789		)
Income from continuing operations available to Units	3,730,451			185,746
Discontinued operations, net	(157		)	155
Numerator for net income per Unit – basic and diluted	$	3,730,294		$	185,901
Denominator for net income per Unit – basic and diluted:
Denominator for net income per Unit – basic	378,289			376,696
Effect of dilutive securities:
Dilution for Units issuable upon assumed exercise/vesting of the Company’s long-term compensation shares/units	3,954			3,631
Denominator for net income per Unit – diluted	382,243			380,327
Net income per Unit – basic	$	9.84		$	0.49
Net income per Unit – diluted	$	9.76		$	0.49
Net income per Unit – basic:
Income from continuing operations available to Units	$	9.84		$	0.49
Discontinued operations, net	—			—
Net income per Unit – basic	$	9.84		$	0.49
Net income per Unit – diluted:
Income from continuing operations available to Units	$	9.76		$	0.49
Discontinued operations, net	—			—
Net income per Unit – diluted	$	9.76		$	0.49