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 twoclass 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 sharebased compensation using the treasury stock or ifconverted 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 March 31, 


2015 

2014 
Numerator: 




Income from continuing operations 

$ 
10,987 


$ 
5,660 

Gain on sales of real estate, net 

3,986 


— 

Preferred share dividends 

(3,552 
) 

(4,490 
) 
Income from continuing operations attributable to noncontrolling interests 

(1,392 
) 

(932 
) 
Income from continuing operations attributable to restricted shares 

(122 
) 

(121 
) 
Numerator for basic and diluted EPS from continuing operations attributable to COPT common shareholders 

$ 
9,907 


$ 
117 

Discontinued operations 

(238 
) 

11 

Discontinued operations attributable to noncontrolling interests 

12 


2 

Numerator for basic and diluted EPS on net income attributable to COPT common shareholders 

$ 
9,681 


$ 
130 

Denominator (all weighted averages): 




Denominator for basic EPS (common shares) 

93,199 


87,080 

Dilutive effect of sharebased compensation awards 

198 


112 

Denominator for diluted EPS (common shares) 

93,397 


87,192 

Basic EPS: 




Income from continuing operations attributable to COPT common shareholders 

$ 
0.10 


$ 
0.00 

Discontinued operations attributable to COPT common shareholders 

0.00 


0.00 

Net income attributable to COPT common shareholders 

$ 
0.10 


$ 
0.00 

Diluted EPS: 




Income from continuing operations attributable to COPT common shareholders 

$ 
0.10 


$ 
0.00 

Discontinued operations attributable to COPT common shareholders 

0.00 


0.00 

Net income attributable to COPT common shareholders 

$ 
0.10 


$ 
0.00 

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 March 31, 


2015 

2014 
Conversion of common units 

3,732 


3,958 

Conversion of Series I Preferred Units 

176 


176 

Conversion of Series K Preferred Shares 

434 


434 

The following sharebased compensation securities were excluded from the computation of diluted EPS because their effect was antidilutive:


• 
weighted average restricted shares for the three months ended March 31, 2015 and 2014 of 400,000 and 390,000, respectively; and



• 
weighted average options for the three months ended March 31, 2015 and 2014 of 474,000 and 588,000, respectively.

As discussed in Note 9, as of March 31, 2015, we had outstanding senior notes with an exchange settlement feature, but such notes did not affect our diluted EPS reported above since the weighted average closing price of COPT’s common shares during each of the periods was less than the exchange prices per common share applicable for such periods.
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 twoclass 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 sharebased compensation using the treasury stock or ifconverted 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 March 31, 


2015 

2014 
Numerator: 




Income from continuing operations 

$ 
10,987 


$ 
5,660 

Gain on sales of real estate, net 

3,986 


— 

Preferred unit distributions 

(3,717 
) 

(4,655 
) 
Income from continuing operations attributable to noncontrolling interests 

(821 
) 

(739 
) 
Income from continuing operations attributable to restricted units 

(122 
) 

(121 
) 
Numerator for basic and diluted EPU from continuing operations attributable to COPLP common unitholders 

$ 
10,313 


$ 
145 

Discontinued operations 

(238 
) 

11 

Discontinued operations attributable to noncontrolling interests 

3 


2 

Numerator for basic and diluted EPU on net income attributable to COPLP common unitholders 

$ 
10,078 


$ 
158 

Denominator (all weighted averages): 




Denominator for basic EPU (common units) 

96,931 


91,038 

Dilutive effect of sharebased compensation awards 

198 


112 

Denominator for basic and diluted EPU (common units) 

97,129 


91,150 

Basic EPU: 




Income from continuing operations attributable to COPLP common unitholders 

$ 
0.10 


$ 
0.00 

Discontinued operations attributable to COPLP common unitholders 

0.00 


0.00 

Net income attributable to COPLP common unitholders 

$ 
0.10 


$ 
0.00 

Diluted EPU: 




Income from continuing operations attributable to COPLP common unitholders 

$ 
0.10 


$ 
0.00 

Discontinued operations attributable to COPLP common unitholders 

0.00 


0.00 

Net income attributable to COPLP common unitholders 

$ 
0.10 


$ 
0.00 

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 March 31, 


2015 

2014 
Conversion of Series I preferred units 

176 


176 

Conversion of Series K preferred units 

434 


434 

The following sharebased compensation securities were excluded from the computation of diluted EPU because their effect was antidilutive:


• 
weighted average restricted units for the three months ended March 31, 2015 and 2014 of 400,000 and 390,000, respectively; and



• 
weighted average options for the three months ended March 31, 2015 and 2014 of 474,000 and 588,000, respectively.

As discussed in Note 9, as of March 31, 2015, we had outstanding senior notes with an exchange settlement feature, but such notes did not affect our diluted EPU reported above since the weighted average closing price of COPT’s common shares during each of the periods was less than the exchange prices per common share applicable for such periods.
