EARNINGS PER SHARE (''EPS'')

9 Months Ended

Sep. 30, 2015

EARNINGS PER SHARE ("EPS")

EARNINGS PER SHARE ("EPS")

10. EARNINGS PER SHARE ("EPS")

        The computations of basic EPS are based on our weighted average shares outstanding. The basic weighted average common shares outstanding were 97,590,000 and 97,582,000 for the three months ended September 30, 2015 and 2014, respectively, and 97,587,000 and 97,035,000 for the nine months ended September 30, 2015 and 2014, respectively. For the three months ended September 30, 2015 and 2014, the weighted average shares outstanding were increased by 0 and 1,000 shares, respectively, to reflect the dilutive effect of stock options; for the nine months ended September 30, 2015 and 2014, the dilutive effect of stock options was 0 and 4,000 shares, respectively. EPS for the year-to-date period may differ from the sum of quarterly EPS amounts due to the required method of computing EPS in the respective periods.

        For purposes of calculating basic EPS for the nine months ended September 30, 2014, the approximately 65,000,000 shares of preferred stock issued in connection with the Merger were assumed to have been converted into approximately 91,040,000 shares of Common Stock. As of the Acquisition Date, a subsidiary of CIM REIT had agreed to vote its 97.8% post-Merger ownership of CIM Commercial in favor of an increase in the number of authorized CIM Commercial shares of Common Stock to one billion (200,000,000 after giving effect to the reverse stock split), thereby satisfying the condition for the automatic conversion of these shares. The actual conversion of the shares of preferred stock to shares of Common Stock occurred on April 29, 2014.