Stockholders' Equity of the Company

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Stockholders’ Equity of the Company

Common Stock

Our authorized capital stock consists of 260,000,000 shares, $0.01 par value per share, consisting of 160,000,000 shares of common stock, $0.01 par value per share, 75,000,000 shares of excess stock, at $0.01 par value per share, and 25,000,000 shares

of preferred stock, par value $0.01 per share. As of September 30, 2019, 81,515,066 shares of common stock and no shares of excess stock were issued and outstanding.

Share Repurchase Program

In August 2016, our Board of Directors approved a share repurchase program under which we can buy up to $1.0 billion of shares of our common stock. The Board of Directors has since authorized three separate $500.0 million increases to the size of the share repurchase program in the fourth quarter of 2017, second quarter of 2018, and fourth quarter of 2018, bringing the total program size to $2.5 billion.

At September 30, 2019, repurchases executed under the program were as follows:



Period	Shares repurchased	Average price paid per share	Cumulative number of shares repurchased as part of the repurchase plan or programs
Year ended 2017	8,342,411	$101.64	8,342,411
Year ended 2018	9,744,911	$96.22	18,087,322
First quarter 2019	397,783	$86.07	18,485,105
Second quarter 2019	866,924	$86.58	19,352,029
Third quarter 2019 ⁽¹⁾	916,439	$81.31	20,268,468


(1)	Includes 108,300 shares of common stock repurchased by the Company in September 2019 that were settled in October 2019.

Perpetual Preferred Stock

We have 9,200,000 shares of our 6.50% Series I Cumulative Redeemable Preferred Stock, or the Series I Preferred Stock, outstanding with a mandatory liquidation preference of $25.00 per share. The Series I Preferred stockholders receive annual dividends of $1.625 per share paid on a quarterly basis and dividends are cumulative, subject to certain provisions. We are entitled to redeem the Series I Preferred Stock at par for cash at our option. In August 2012, we received $221.9 million in net proceeds from the issuance of the Series I Preferred Stock, which were recorded net of underwriters' discount and issuance costs, and contributed the net proceeds to the Operating Partnership in exchange for 9,200,000 units of 6.50% Series I Cumulative Redeemable Preferred Units of limited partnership interest, or the Series I Preferred Units.

Dividend Reinvestment and Stock Purchase Plan ("DRSPP")

In February 2018, the Company filed a registration statement with the SEC for our dividend reinvestment and stock purchase plan, or DRSPP, which automatically became effective upon filing. The Company registered 3,500,000 shares of our common stock under the DRSPP. The DRSPP commenced on September 24, 2001.

The following table summarizes SL Green common stock issued, and proceeds received from dividend reinvestments and/or stock purchases under the DRSPP for the three and nine months ended September 30, 2019 and 2018, respectively (dollars in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Shares of common stock issued	490		509		3,485		1,183
Dividend reinvestments/stock purchases under the DRSPP	$	39	$	52	$	303	$	116

Earnings per Share

We use the two-class method of computing earnings per share (“EPS”), which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared (whether paid or unpaid). Under the two-class method, basic EPS is computed by dividing the income available to common stockholders by the weighted-average number of common stock shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity.

SL Green's earnings per share for the three and nine months ended September 30, 2019 and 2018 are computed as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
Numerator	2019			2018			2019			2018
Basic Earnings:
Income attributable to SL Green common stockholders	$	33,157		$	88,209		$	238,052		$	293,531
Less: distributed earnings allocated to participating securities	(108		)	(125		)	(325		)	(371		)
Less: undistributed earnings allocated to participating securities	—			(33		)	(41		)	(138		)
Net income attributable to SL Green common stockholders (numerator for basic earnings per share)	$	33,049		$	88,051		$	237,686		$	293,022
Add back: distributed earnings allocated to participating securities	108			125			325			371
Add back: undistributed earnings allocated to participating securities	—			33			41			138
Add back: Effect of dilutive securities (redemption of units to common shares)	1,719			4,797			12,306			15,656
Income attributable to SL Green common stockholders (numerator for diluted earnings per share)	$	34,876		$	93,006		$	250,358		$	309,187



	Three Months Ended September 30,		Nine Months Ended September 30,
Denominator	2019	2018	2019	2018
Basic Shares:
Weighted average common stock outstanding	82,292	85,566	82,855	87,692
Effect of Dilutive Securities:
Operating Partnership units redeemable for common shares	4,258	4,643	4,283	4,677
Stock-based compensation plans	164	219	171	211
Diluted weighted average common stock outstanding	86,714	90,428	87,309	92,580

SL Green has excluded 1,317,803 and 1,266,296 common stock equivalents from the diluted shares outstanding for the three and nine months ended September 30, 2019, respectively, as they were anti-dilutive. SL Green has excluded 941,636 and 1,137,971 common stock equivalents from the diluted shares outstanding for the three and nine months ended September 30, 2018, respectively, as they were anti-dilutive.

Accumulated Other Comprehensive (Loss) Income

The following tables set forth the changes in accumulated other comprehensive (loss) income by component as of September 30, 2019 (in thousands):



	Net unrealized gain (loss) on derivative instruments ⁽¹⁾			SL Green’s share of joint venture net unrealized gain (loss) on derivative instruments ⁽²⁾			Net unrealized gain on marketable securities		Total
Balance at December 31, 2018	$	9,716		$	4,299		$	1,093	$	15,108
Other comprehensive (loss) income before reclassifications	(41,385		)	(13,680		)	1,494		(53,571		)
Amounts reclassified from accumulated other comprehensive loss	(864		)	(805		)	—		(1,669		)
Balance at September 30, 2019	$	(32,533	)	$	(10,186	)	$	2,587	$	(40,132	)

(1)

Amount reclassified from accumulated other comprehensive income (loss) is included in interest expense in the respective consolidated statements of operations. As of September 30, 2019 and December 31, 2018, the deferred net (gains) losses from these terminated hedges, which is included in accumulated other comprehensive loss relating to net unrealized loss on derivative instrument, was $(0.2) million and $1.3 million, respectively.

(2)

Amount reclassified from accumulated other comprehensive (loss) income is included in equity in net (loss) income from unconsolidated joint ventures in the respective consolidated statements of operations.