Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2016

Net Income (Loss) 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 June 30,					Six Months Ended June 30,
(in thousands, except per share data)	2016		2015			2016		2015
Numerator:
Net income available to common shareholders - basic	$	60,729	$	57,983		$	77,775	$	79,531
Less amounts available to noncontrolling interests assuming conversion	—		(6		)	—		(12		)
Net income available to common shareholders - diluted	$	60,729	$	57,977		$	77,775	$	79,519
Denominator:
Weighted-average number of common shares outstanding - basic	201,600		204,227			202,955		204,117
Dilutive securities	89		326			74		348
Weighted-average number of common shares outstanding - diluted	201,689		204,553			203,029		204,465
Net income per common share - basic	$	0.30	$	0.28		$	0.38	$	0.39
Net income per share common share - diluted	$	0.30	$	0.28		$	0.38	$	0.39

ESH REIT

Net Income (Loss) Per Share

NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) 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 income (loss) per share is computed by dividing net income (loss) 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 income (loss) per share, including a reconciliation of the numerators and denominators, are as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except per share data)	2016			2015			2016			2015
Numerator:
Net income (loss) attributable to common shareholders	$	1,471		$	15,188		$	(3,659	)	$	29,234
Less preferred dividends	(4		)	(4		)	(8		)	(8		)
Net income (loss) available to common shareholders	$	1,467		$	15,184		$	(3,667	)	$	29,226
Class A:
Net income (loss) available to common shareholders - basic	$	814		$	8,364		$	(2,023	)	$	16,100
Less amounts available to Class B shareholders assuming conversion	—			(6		)	—			(12		)
Net income (loss) available to common shareholders - diluted	$	814		$	8,358		$	(2,023	)	$	16,088
Class B:
Net income (loss) available to common shareholders - basic	$	653		$	6,820		$	(1,644	)	$	13,126
Amounts available to Class B shareholders assuming conversion	—			6			—			12
Net income (loss) available to common shareholders - diluted	$	653		$	6,826		$	(1,644	)	$	13,138
Denominator:
Class A:
Weighted-average number of common shares outstanding - basic and diluted	250,494			250,494			250,494			250,408
Class B:
Weighted-average number of common shares outstanding - basic	201,600			204,227			202,955			204,117
Dilutive securities	89			326			—			348
Weighted-average number of common shares outstanding - diluted	201,689			204,553			202,955			204,465
Net income (loss) per common share - Class A - basic	$	—		$	0.03		$	(0.01	)	$	0.06
Net income (loss) per common share - Class A - diluted	$	—		$	0.03		$	(0.01	)	$	0.06
Net income (loss) per common share - Class B - basic	$	—		$	0.03		$	(0.01	)	$	0.06
Net income (loss) per common share - Class B - diluted	$	—		$	0.03		$	(0.01	)	$	0.06
Anti-dilutive securities excluded from net income (loss) per common share - Class B - diluted	—			—			74			—