Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share ("EPS") and Earnings Per Unit ("EPU")

v3.8.0.1
Earnings Per Share ("EPS") and Earnings Per Unit ("EPU")
9 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
Earnings Per Share (“EPS”) and Earnings Per Unit (“EPU”)
Earnings Per Share (“EPS”) and Earnings Per Unit (“EPU”)
 
COPT and Subsidiaries EPS

We present both basic and diluted EPS.  We compute basic EPS by dividing net income available to common shareholders allocable to unrestricted common shares under the two-class method by the weighted average number of unrestricted common shares outstanding during the period.  Our computation of diluted EPS is similar except that:
 
the denominator is increased to include: (1) the weighted average number of potential additional common shares that would have been outstanding if securities that are convertible into COPT common shares were converted; and (2) the effect of dilutive potential common shares outstanding during the period attributable to share-based compensation using the treasury stock or if-converted methods; and
the numerator is adjusted to add back any changes in income or loss that would result from the assumed conversion into common shares that we added to the denominator.

Summaries of the numerator and denominator for purposes of basic and diluted EPS calculations are set forth below (in thousands, except per share data):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Numerator:
 

 
 

 
 
 
 
Net income (loss) attributable to COPT
$
20,916

 
$
27,299

 
$
60,133

 
$
(13,294
)
Preferred share dividends

 
(3,552
)
 
(6,219
)
 
(10,657
)
Issuance costs associated with redeemed preferred shares

 

 
(6,847
)
 

Income attributable to share-based compensation awards
(95
)
 
(105
)
 
(337
)
 
(319
)
Numerator for basic and diluted EPS on net income (loss) attributable to COPT common shareholders
$
20,821

 
$
23,642

 
$
46,730

 
$
(24,270
)
Denominator (all weighted averages):
 

 
 

 
 
 
 
Denominator for basic EPS (common shares)
99,112

 
94,433

 
98,855

 
94,312

Dilutive effect of share-based compensation awards
146

 
81

 
154

 

Denominator for diluted EPS (common shares)
99,258

 
94,514

 
99,009

 
94,312

Basic EPS:
 

 
 

 
 
 
 
Net income (loss) attributable to COPT common shareholders
$
0.21

 
$
0.25

 
$
0.47

 
$
(0.26
)
Diluted EPS:
 

 
 

 
 
 
 
Net income (loss) attributable to COPT common shareholders
$
0.21

 
$
0.25

 
$
0.47

 
$
(0.26
)

 
Our diluted EPS computations do not include the effects of the following securities since the conversions of such securities would increase diluted EPS for the respective periods (in thousands):
 
Weighted Average Shares Excluded from Denominator
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Conversion of common units
3,350

 
3,591

 
3,400

 
3,648

Conversion of Series I Preferred Units
176

 
176

 
176

 
176

Conversion of Series K Preferred Shares

 
434

 

 
434


 
The following share-based compensation securities were excluded from the computation of diluted EPS because their effects were antidilutive:
 
weighted average restricted shares and deferred share awards for the three months ended September 30, 2017 and 2016 of 445,000 and 375,000, respectively, and for the nine months ended September 30, 2017 and 2016 of 431,000 and 394,000, respectively; and
weighted average options for the three months ended September 30, 2017 and 2016 of 40,000 and 233,000, respectively, and for the nine months ended September 30, 2017 and 2016 of 80,000 and 307,000, respectively.

COPLP and Subsidiaries EPU

We present both basic and diluted EPU.  We compute basic EPU by dividing net income available to common unitholders allocable to unrestricted common units under the two-class method by the weighted average number of unrestricted common units outstanding during the period.  Our computation of diluted EPU is similar except that:
 
the denominator is increased to include: (1) the weighted average number of potential additional common units that would have been outstanding if securities that are convertible into our common units were converted; and (2) the effect of dilutive potential common units outstanding during the period attributable to share-based compensation using the treasury stock or if-converted methods; and
the numerator is adjusted to add back any changes in income or loss that would result from the assumed conversion into common units that we added to the denominator.

Summaries of the numerator and denominator for purposes of basic and diluted EPU calculations are set forth below (in thousands, except per unit data):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Numerator:
 

 
 

 
 
 
 
Net income (loss) attributable to COPLP common unitholders
$
21,785

 
$
28,359

 
$
62,239

 
$
(13,751
)
Preferred unit distributions
(165
)
 
(3,717
)
 
(6,714
)
 
(11,152
)
Issuance costs associated with redeemed preferred units

 

 
(6,847
)
 

Income attributable to share-based compensation awards
(95
)
 
(105
)
 
(337
)
 
(319
)
Numerator for basic and diluted EPU on net income (loss) attributable to COPLP common unitholders
$
21,525

 
$
24,537

 
$
48,341

 
$
(25,222
)
Denominator (all weighted averages):
 

 
 

 
 
 
 
Denominator for basic EPU (common units)
102,462

 
98,024

 
102,255

 
97,960

Dilutive effect of share-based compensation awards
146

 
81

 
154

 

Denominator for diluted EPU (common units)
102,608

 
98,105

 
102,409

 
97,960

Basic EPU:
 

 
 

 
 
 
 
Net income (loss) attributable to COPLP common unitholders
$
0.21

 
$
0.25

 
$
0.47

 
$
(0.26
)
Diluted EPU:
 

 
 

 
 
 
 
Net income (loss) attributable to COPLP common unitholders
$
0.21

 
$
0.25

 
$
0.47

 
$
(0.26
)

 
Our diluted EPU computations do not include the effects of the following securities since the conversions of such securities would increase diluted EPU for the respective periods (in thousands):
 
Weighted Average Units Excluded from Denominator
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Conversion of Series I preferred units
176

 
176

 
176

 
176

Conversion of Series K preferred units

 
434

 

 
434


 
The following share-based compensation securities were excluded from the computation of diluted EPU because their effects were antidilutive:
 
weighted average restricted units and deferred share awards for the three months ended September 30, 2017 and 2016 of 445,000 and 375,000, respectively, and for the nine months ended September 30, 2017 and 2016 of 431,000 and 394,000, respectively; and
weighted average options for the three months ended September 30, 2017 and 2016 of 40,000 and 233,000, respectively, and for the nine months ended September 30, 2017 and 2016 of 80,000 and 307,000, respectively.