Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share ("EPS")

v2.4.0.6
Earnings Per Share ("EPS")
9 Months Ended
Sep. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share ("EPS")
Earnings Per Share (“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 our 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,
 
2012
 
2011
 
2012
 
2011
Numerator:
 

 
 

 
 
 
 
(Loss) income from continuing operations
$
(31,816
)
 
$
1,962

 
$
(12,160
)
 
$
(21,722
)
Gain on sales of real estate, net

 

 
21

 
2,728

Preferred share dividends
(6,546
)
 
(4,025
)
 
(14,738
)
 
(12,076
)
Issuance costs associated with redeemed preferred shares
(1,827
)
 

 
(1,827
)
 

Loss (income) from continuing operations attributable to noncontrolling interests
1,616

 
(581
)
 
124

 
540

Income from continuing operations attributable to restricted shares
(111
)
 
(262
)
 
(357
)
 
(781
)
Numerator for basic EPS from continuing operations attributable to COPT common shareholders
(38,684
)
 
(2,906
)
 
(28,937
)
 
(31,311
)
Dilutive effect of common units in the Operating Partnership on diluted EPS from continuing operations

 

 

 
(2,025
)
Numerator for diluted EPS from continuing operations attributable to COPT common shareholders
$
(38,684
)
 
$
(2,906
)
 
$
(28,937
)
 
$
(33,336
)
Numerator for basic EPS from continuing operations attributable to COPT common shareholders
$
(38,684
)
 
$
(2,906
)
 
$
(28,937
)
 
$
(31,311
)
Discontinued operations
11,051

 
5,508

 
10,212

 
(18,109
)
Discontinued operations attributable to noncontrolling interests
(623
)
 
(323
)
 
(538
)
 
1,115

Numerator for basic EPS on net (loss) income attributable to COPT common shareholders
(28,256
)
 
2,279

 
(19,263
)
 
(48,305
)
Dilutive effect of common units in the Operating Partnership

 

 

 
(3,188
)
Numerator for diluted EPS on net (loss) income attributable to COPT common shareholders
$
(28,256
)
 
$
2,279

 
$
(19,263
)
 
$
(51,493
)
Denominator (all weighted averages):
 

 
 

 
 
 
 
Denominator for basic EPS (common shares)
71,688

 
71,312

 
71,590

 
68,718

Dilutive effect of common units

 

 

 
4,371

Denominator for basic and diluted EPS
71,688

 
71,312

 
71,590

 
73,089

Basic EPS:
 

 
 

 
 
 
 
Loss from continuing operations attributable to COPT common shareholders
$
(0.54
)
 
$
(0.04
)
 
$
(0.40
)
 
$
(0.46
)
Discontinued operations attributable to COPT common shareholders
0.15

 
0.07

 
0.13

 
(0.24
)
Net (loss) income attributable to COPT common shareholders
$
(0.39
)
 
$
0.03

 
$
(0.27
)
 
$
(0.70
)
Diluted EPS:
 

 
 

 
 
 
 
Loss from continuing operations attributable to COPT common shareholders
$
(0.54
)
 
$
(0.04
)
 
$
(0.40
)
 
$
(0.46
)
Discontinued operations attributable to COPT common shareholders
0.15

 
0.07

 
0.13

 
(0.24
)
Net (loss) income attributable to COPT common shareholders
$
(0.39
)
 
$
0.03

 
$
(0.27
)
 
$
(0.70
)

 
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):
 
Weighed Average Shares Excluded from Denominator
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2012
 
2011
 
2012
 
2011
Conversion of common units
4,233

 
4,336

 
4,256

 

Conversion of convertible preferred units
176

 
176

 
176

 
176

Conversion of convertible preferred shares
434

 
434

 
434

 
434


 
The following share-based compensation securities were excluded from the computation of diluted EPS because their effect was antidilutive:
 
weighted average restricted shares for the three months ended September 30, 2012 and 2011 of 420,000 and 629,000, respectively, and for the nine months ended September 30, 2012 and 2011 of 475,000 and 635,000, respectively; and
weighted average options for the three months ended September 30, 2012 and 2011 of 752,000 and 697,000, respectively, and for the nine months ended September 30, 2012 and 2011 of 780,000 and 655,000, respectively.
 
As discussed in Note 8, we have outstanding senior notes that have an exchange settlement feature but did not affect our diluted EPS reported above since the weighted average closing price of our common shares during each of the periods was less than the exchange prices per common share applicable for such periods.