Net Income Per Share

3 Months Ended

Mar. 31, 2016

Net Income Per Share

NET INCOME PER SHARE

Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of the Corporation’s unrestricted common stock outstanding. Diluted net income per share is computed by dividing net income available to common shareholders, as adjusted for potentially dilutive securities, by the weighted-average number of shares of the Corporation’s unrestricted common stock outstanding plus other potentially dilutive securities. Dilutive securities include certain equity-based awards issued under long-term incentive plans (see Note 12).

The calculations of basic and diluted net income per share, including a reconciliation of the numerators and denominators, are as follows:

	Three Months Ended March 31,
(in thousands, except per share data)	2016		2015
Numerator:
Net income available to common shareholders - basic	$	17,046	$	21,548
Less amounts available to noncontrolling interests assuming conversion	—		(6		)
Net income available to common shareholders - diluted	$	17,046	$	21,542
Denominator:
Weighted-average number of common shares outstanding - basic	204,310		204,007
Dilutive securities	60		372
Weighted-average number of common shares outstanding - diluted	204,370		204,379
Net income per common share - basic	$	0.08	$	0.11
Net income per share common - diluted	$	0.08	$	0.11

ESH REIT

Net Income Per Share

NET INCOME PER SHARE

Basic net (loss) income per share is computed by dividing net (loss) income available to Class A and Class B common shareholders by the weighted-average number of shares of ESH REIT’s unrestricted Class A and Class B common stock outstanding, respectively. Diluted net (loss) income per share is computed by dividing net (loss) income available to Class A and Class B common shareholders, as adjusted for potentially dilutive securities, by the weighted-average number of shares of ESH REIT’s unrestricted Class A and Class B common stock outstanding, respectively, plus other potentially dilutive securities. Dilutive securities include certain equity-based awards issued under long-term incentive plans (see Note 10) and are included in the calculation, provided that the inclusion of such securities is not anti-dilutive.

The calculations of basic and diluted net (loss) income per share, including a reconciliation of the numerators and denominators, are as follows:

	Three Months Ended March 31,
(in thousands, except per share data)	2016			2015
Numerator:
Net (loss) income attributable to common shareholders	$	(5,130	)	$	14,046
Less preferred dividends	(4		)	—
Net (loss) income available to common shareholders	$	(5,134	)	$	14,046
Class A:
Net (loss) income available to common shareholders - basic	$	(2,837	)	$	7,738
Less amounts available to Class B shareholders assuming conversion	—			(6		)
Net (loss) income available to common shareholders - diluted	$	(2,837	)	$	7,732
Class B:
Net (loss) income available to common shareholders - basic	$	(2,297	)	$	6,308
Amounts available to Class B shareholders assuming conversion	—			6
Net (loss) income available to common shareholders - diluted	$	(2,297	)	$	6,314
Denominator:
Class A:
Weighted-average number of common shares outstanding - basic and diluted	250,494			250,323
Class B:
Weighted-average number of common shares outstanding - basic	204,310			204,007
Dilutive securities	—			372
Weighted-average number of common shares outstanding - diluted	204,310			204,379
Net (loss) income per common share - Class A - basic	$	(0.01	)	$	0.03
Net (loss) income per common share - Class A - diluted	$	(0.01	)	$	0.03
Net (loss) income per common share - Class B - basic	$	(0.01	)	$	0.03
Net (loss) income per common share - Class B - diluted	$	(0.01	)	$	0.03
Anti-dilutive securities excluded from net (loss) income per common share - Class B - diluted	60			—