The reconciliation of the basic and diluted EPS computations is shown in the following table:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Numerators (in thousands)
Earnings (loss) from continuing operations attributable to Forest City Enterprises, Inc.	$	686		$	236,320		$	(89,748	)	$	170,130
Preferred dividends	—			—			—			(185		)
Undistributed earnings allocated to participating securities	(17		)	(6,759		)	—			(5,021		)
Earnings (loss) from continuing operations attributable to common shareholders ‑ Basic	$	669		$	229,561		$	(89,748	)	$	164,924
Undistributed earnings allocated to participating securities	17			6,759			—			5,021
Interest on convertible debt	—			4,005			—			10,946
Earnings (loss) from continuing operations attributable to common shareholders ‑ Diluted	$	686		$	240,325		$	(89,748	)	$	180,891
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	686		$	241,856		$	(76,786	)	$	187,325
Preferred dividends	—			—			—			(185		)
Undistributed earnings allocated to participating securities	(17		)	(6,917		)	—			(5,530		)
Net earnings (loss) attributable to common shareholders ‑ Basic	$	669		$	234,939		$	(76,786	)	$	181,610
Undistributed earnings allocated to participating securities	17			6,917			—			5,530
Interest on convertible debt	—			4,005			—			10,946
Net earnings (loss) attributable to common shareholders ‑ Diluted	$	686		$	245,861		$	(76,786	)	$	198,086
Denominators
Weighted average shares outstanding ‑ Basic	198,893,584			197,442,451			198,328,900			190,919,579
Effect of stock options, restricted stock and performance shares	1,758,916			1,804,200			—			1,684,332
Effect of convertible debt	—			29,877,940			—			29,813,775
Effect of convertible Class A Common Units	2,973,190			3,646,755			—			3,646,755
Weighted average shares outstanding ‑ Diluted ⁽¹⁾	203,625,690			232,771,346			198,328,900			226,064,441
Earnings Per Share
Earnings (loss) from continuing operations attributable to common shareholders ‑ Basic	$	—		$	1.16		$	(0.45	)	$	0.86
Earnings (loss) from continuing operations attributable to common shareholders ‑ Diluted	$	—		$	1.03		$	(0.45	)	$	0.80
Net earnings (loss) attributable to common shareholders ‑ Basic	$	—		$	1.19		$	(0.39	)	$	0.95
Net earnings (loss) attributable to common shareholders ‑ Diluted	$	—		$	1.06		$	(0.39	)	$	0.88

(1)

Convertible securities of 32,138,215 for the three months ended September 30, 2014 were not included in the computation of diluted EPS because their effect is anti-dilutive under the if-converted method. Incremental shares from dilutive options, restricted stock, performance shares and convertible securities aggregating 37,238,228 for the nine months ended September 30, 2014 were not included in the computation of diluted EPS because their effect is anti-dilutive due to the loss from continuing operations. Weighted-average shares issuable upon the conversion of preferred stock of 185,199 for the nine months ended September 30, 2013 were not included in the computation of diluted EPS because their effect is anti-dilutive under the if-converted method. Weighted-average options, restricted stock and performance shares of 3,240,497 and 3,470,348 for the three and nine months ended September 30, 2014, respectively, and 3,455,487 and 3,514,529 for the three and nine months ended September 30, 2013, respectively, were not included in the computation of diluted EPS because their effect is anti-dilutive under the treasury stock method.