Earnings per Share and per Unit

12 Months Ended

Dec. 31, 2020

Note 12 — Earnings per Share and per Unit

AIR and the AIR Operating Partnership calculate basic earnings per common share and basic earnings per common unit based on the weighted-average number of shares of Common Stock and common partnership units outstanding. We calculate diluted earnings per share and diluted earnings per unit taking into consideration dilutive common stock and common partnership unit equivalents and dilutive convertible securities outstanding during the period.

Our common stock and common partnership unit equivalents include options to purchase shares of Common Stock, which, if exercised, would result in AIR’s issuance of additional shares and the AIR Operating Partnership’s issuance to AIR of additional common partnership units equal to the number of shares purchased under the options. These equivalents also include unvested TSR Restricted Stock awards that do not meet the definition of participating securities, which would result in an increase in the number of shares of Common Stock and common partnership units outstanding equal to the number of the shares that vest. Common partnership unit equivalents also include unvested long-term incentive partnership units. We include in the denominator securities with dilutive effect in calculating diluted earnings per share and per unit during these periods.

Our Time-Based Restricted Stock awards receive non-forfeitable dividends similar to shares of Common Stock and common partnership units prior to vesting, and our TSR LTIP I units and TSR LTIP II units receive non-forfeitable distributions based on specified percentages of the distributions paid to common partnership units prior to vesting and conversion. The unvested restricted shares and units related to these awards are participating securities. We include the effect of participating securities in basic and diluted earnings per share and unit computations using the two-class method of allocating distributed and undistributed earnings when the two-class method is more dilutive than the treasury stock method.

In our consolidated statement of operations, noncontrolling interest in consolidated real estate partnerships is related to both continuing and discontinuing operations. For purposes of our earnings per share calculation, we have appropriately allocated the noncontrolling interest in consolidated real estate partnerships for all periods presented. Please refer to Note 4 for detail of noncontrolling interest in consolidated real estate partnerships associated with discontinued operations.

Reconciliations of the numerator and denominator in the calculations of basic and diluted earnings per share and per unit for the years ended December 31, 2020, 2019, and 2018 are as follows (in thousands, except per share and per unit data):

	Year Ended December 31, 2020
	Income (Numerator)			Shares (Denominator)		Per Share Amount
Basic and Diluted Earnings per Share:
Loss from continuing operations attributable to AIR	$	(115,961	)		122,446	$	(0.94	)
Income from discontinued operations attributable to AIR		11,632			122,446		0.09
Net loss attributable to AIR common stockholders	$	(104,329	)		122,446	$	(0.85	)
Diluted Earnings per Share:
Effect of dilutive securities		—			—		—
Net loss attributable to AIR common stockholders	$	(104,329	)		122,446	$	(0.85	)

	Year Ended December 31, 2019
	Income (Numerator)			Shares (Denominator)		Per Share Amount
Basic Earnings per Share:
Income from continuing operations attributable to AIR	$	446,460			119,307	$	3.75
Income from discontinued operations attributable to AIR		19,684			119,307		0.16
Net income attributable to AIR common stockholders	$	466,144			119,307	$	3.91
Diluted Earnings per Share:
Effect of dilutive securities		—			226		(0.01	)
Net income attributable to AIR common stockholders	$	466,144			119,533	$	3.90

	Year Ended December 31, 2018
	Income (Numerator)			Shares (Denominator)		Per Share Amount
Basic Earnings per Share:
Income from continuing operations attributable to AIR	$	635,611			122,097	$	5.21
Income from discontinued operations attributable to AIR		20,986			122,097		0.17
Net income attributable to AIR common stockholders	$	656,597			122,097	$	5.38
Diluted Earnings per Share:
Effect of dilutive securities		—			146		(0.01	)
Net income attributable to AIR common stockholders	$	656,597			122,243	$	5.37

	Year Ended December 31, 2020
	Income (Numerator)			Shares (Denominator)		Per Unit Amount
Basic and Diluted Earnings per unit:
Loss from continuing operations attributable to the AIR Operating Partnership	$	(121,399	)		128,775	$	(0.94	)
Income from discontinued operations attributable to the AIR Operating Partnership		11,632			128,775		0.09
Net loss attributable to the AIR Operating Partnership's common unitholders	$	(109,767	)		128,775	$	(0.85	)
Diluted Earnings per unit:
Effect of dilutive securities		—			—		—
Net loss attributable to the AIR Operating Partnership's common unitholders	$	(109,767	)		128,775	$	(0.85	)

	Year Ended December 31, 2019
	Income (Numerator)			Shares (Denominator)		Per Unit Amount
Basic Earnings per unit:
Income from continuing operations attributable to the AIR Operating Partnership	$	472,493			125,893	$	3.75
Income from discontinued operations attributable to the AIR Operating Partnership		19,684			125,893		0.16
Net income attributable to the AIR Operating Partnership's common unitholders	$	492,177			125,893	$	3.91
Diluted Earnings per unit:
Effect of dilutive securities		—			271		(0.01	)
Net income attributable to the AIR Operating Partnership's common unitholders	$	492,177			126,164	$	3.90

	Year Ended December 31, 2018
	Income (Numerator)			Shares (Denominator)		Per Unit Amount
Basic Earnings per unit:
Income from continuing operations attributable to the AIR Operating Partnership	$	669,888			128,323	$	5.22
Income from discontinued operations attributable to the AIR Operating Partnership		20,986			128,323		0.16
Net income attributable to the AIR Operating Partnership's common unitholders	$	690,874			128,323	$	5.38
Diluted Earnings per unit:
Effect of dilutive securities		—			146		—
Net income attributable to the AIR Operating Partnership's common unitholders	$	690,874			128,469	$	5.38

As discussed in Note 9, the AIR Operating Partnership has various classes of preferred OP Units, which may be redeemed at the holders’ option. The AIR Operating Partnership may redeem these units for cash, or at its option, shares of Common Stock. As of December 31, 2020, these preferred OP Units were potentially redeemable for approximately 2.1 million shares of Common Stock (based on the period end market price), or cash. The AIR Operating Partnership has a redemption policy that requires cash settlement of redemption requests for the preferred OP Units, subject to limited exceptions. Accordingly, we have excluded these securities from earnings per share and unit computations for the periods presented above.