Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Summary Of Significant Accounting Policies [Abstract]

Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology

The fair value of the option grants are recognized over the requisite service/vesting period of the options.  The fair value for the Company’s share options was estimated at the time the share options were granted using the Black-Scholes option pricing model with the primary grant in each year having the following weighted average assumptions:

	2018			2017			2016
Expected volatility (1)		14.8	%		15.3	%		26.3	%
Expected life (2)	5 years			5 years			5 years
Expected dividend yield (3)		3.09	%		3.08	%		3.04	%
Risk-free interest rate (4)		2.52	%		1.93	%		1.27	%
Option valuation per share	$	6.15		$	5.86		$	13.02

(1) Expected volatility – For the 2018 and 2017 grants, estimated based on the historical five-year volatility (the period matching the expected life) of EQR’s share price measured on a monthly basis. For the 2016 grant, estimated based on the historical ten-year volatility of EQR’s share price measured on a monthly basis.  This change in estimate reflects the Company’s belief that the historical five-year period provides a better estimate of the expected volatility in EQR shares over the expected life of the options.

(2) Expected life – Approximates the actual weighted average life of all share options granted since the Company went public in 1993.

(3) Expected dividend yield – Calculated by averaging the historical annual yield on EQR shares for a period matching the expected life of each grant, with the annual yield calculated by dividing actual regular dividends (excluding any special dividends) by the average price of EQR’s shares in a given year.

(4) Risk-free interest rate – The most current U.S. Treasury rate available prior to the grant date for a period matching the expected life of each grant.

Allocation Of Income Franchise And Excise Taxes In Consolidated Statements Of Operations

The Company provided for income, franchise and excise taxes allocated as follows in the consolidated statements of operations and comprehensive income for the years ended December 31, 2018, 2017 and 2016 (amounts in thousands):

	Year Ended December 31,
	2018		2017		2016
Income and other tax expense (benefit) (1)	$	878	$	478	$	1,613
Discontinued operations, net (2)		—		—		12
Provision for income, franchise and excise taxes (3)	$	878	$	478	$	1,625

(1) Primarily includes state and local income, excise and franchise taxes.

(2) Primarily represents state and local income, excise and franchise taxes on operating properties sold prior to January 1, 2014 and included in discontinued operations.  The amounts included in discontinued operations for the year ended December 31, 2016 represent trailing activity for properties sold in 2013 and prior years.  None of the properties sold during the years ended December 31, 2018, 2017 and 2016 met the criteria for reporting discontinued operations.

(3) All provisions for income tax amounts are current and none are deferred.

Tax Treatment Of Dividends And Distributions

   During the years ended December 31, 2018, 2017 and 2016, the Company’s tax treatment of dividends and distributions were as follows (unaudited):

	Year Ended December 31,
	2018 (1)		2017 (2)		2016
Tax treatment of dividends and distributions:
Ordinary dividends	$	1.84454	$	1.22126	$	0.722
Long-term capital gain		0.21423		0.18959		9.176
Unrecaptured section 1250 gain		0.06498		0.10040		3.117
Dividends and distributions per
Common Share/Unit outstanding	$	2.12375	$	1.51125	$	13.015

(1) The Company’s fourth quarter 2018 dividends and distributions of $0.54 per Common Share/Unit outstanding will be included as taxable income in calendar year 2019.

(2) The Company’s fourth quarter 2017 dividends and distributions of $0.50375 per Common Share/Unit outstanding will be included as taxable income in calendar year 2018.

Schedule of Disaggregation of Revenue Streams of Rental Income and Percentage of Rental Income

The following table presents the disaggregation of revenue streams of our rental income for the year ended December 31, 2018 (amounts in thousands):

		Year Ended December 31, 2018
Revenue Stream	Applicable Standard	Amount of Rental Income		Percentage of Rental Income
Leasing revenue	Leases	$	2,418,168		93.8	%
Utility recoveries (“RUBS”)	Revenue Recognition		63,218		2.5	%
Parking revenue	Revenue Recognition		26,743		1.0	%
Other revenue	Revenue Recognition		69,552		2.7	%
Rental income		$	2,577,681		100.0	%