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Earnings Per Share
 12 Months Ended
Jan. 31, 2012
Earnings Per Share [Abstract]  
Earnings Per Share

R. Earnings Per Share

The Company’s restricted stock is considered a participating security pursuant to the two-class method for computing basic EPS. The Class A Common Units, which are reflected as noncontrolling interests in the Consolidated Balance Sheets, are considered convertible participating securities as they are entitled to participate in any dividends paid to the Company’s common shareholders. The Class A Common Units are included in the computation of basic EPS using the two-class method and are included in the computation of diluted EPS using the if-converted method. The Class A common stock issuable in connection with a put or conversion of the 2014 Senior Notes, 2016 Senior Notes, 2018 Senior Notes and Series A preferred stock are included in the computation of diluted EPS using the if-converted method. The loss from continuing operations attributable to the Company and the net loss attributable to the Company for the years ended January 31, 2012 and 2010 were allocated solely to holders of common stock as the participating security holders do not share in the losses.

 

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

 

                         
    Years Ended January 31,  
    2012     2011     2010  

Numerators (in thousands)

                        

Earnings (loss) from continuing operations attributable to Forest City Enterprises, Inc.

   $ (109,818 )    $ 79,940     $ (14,208 ) 

Dividends on preferred stock

     (15,400 )      (11,807 )      -  

Undistributed earnings allocated to participating securities

     -       (2,183 )      -  
       

Earnings (loss) from continuing operations attributable to Forest City Enterprises, Inc.
common shareholders - Basic

    (125,218 )      65,950       (14,208 ) 

Undistributed earnings allocated to participating securities

     -       2,183       -  

Interest on convertible debt

     -       4,438       -  

Preferred distribution on Class A Common Units

     -       1,433       -  
       

Earnings (loss) from continuing operations attributable to Forest City Enterprises, Inc.
common shareholders - Diluted

  $ (125,218 )    $ 74,004     $ (14,208 ) 
Net earnings (loss) attributable to Forest City Enterprises, Inc.   $ (86,486 )    $ 58,048     $ (26,978 ) 
Dividends on preferred stock     (15,400 )      (11,807 )      -  
Undistributed earnings allocated to participating securities     -       (1,501 )      -  
       

Net earnings (loss) attributable to Forest City Enterprises, Inc.
common shareholders - Basic

     (101,886 )      44,740       (26,978 ) 
Undistributed earnings allocated to participating securities     -       1,501       -  
Interest on convertible debt     -       4,438       -  
Preferred distribution on Class A Common Units     -       1,433       -  
       

Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders -
Diluted

  $ (101,886 )    $ 52,112     $ (26,978 ) 
       

Denominators

                        

Weighted average shares outstanding - Basic

    168,170,650       155,485,243       139,825,349  

Effect of stock options and restricted stock

    -       550,730       -  

Effect of convertible debt

     -       13,755,158       -  

Effect of convertible Class A Common Units

     -       3,646,755       -  

Weighted average shares outstanding - Diluted (1)

    168,170,650       173,437,886       139,825,349  
       

Earnings Per Share

                        

Earnings (loss) from continuing operations attributable to Forest City Enterprises, Inc.
common shareholders - Basic

   $ (0.74 )    $ 0.42     $ (0.10 ) 

Earnings (loss) from continuing operations attributable to Forest City Enterprises, Inc.
common shareholders - Diluted

   $ (0.74 )    $ 0.43     $ (0.10 ) 

Net earnings (loss) attributable to Forest City Enterprises, Inc.
common shareholders - Basic

   $ (0.61 )    $ 0.29     $ (0.19 ) 

Net earnings (loss) attributable to Forest City Enterprises, Inc.
common shareholders - Diluted (2)

   $ (0.61 )    $ 0.30     $ (0.19 ) 

 

(1)    a)

Incremental shares from dilutive options, restricted stock and convertible securities aggregating 45,856,959 and 12,065,194 for the years ended January 31, 2012 and 2010, respectively, were not included in the computation of diluted EPS because their effect is anti-dilutive due to the loss from continuing operations.

 

  b)

Weighted-average options and restricted stock of 4,222,955, 4,447,652 and 4,520,436 for the years ended January 31, 2012, 2011 and 2010, respectively, were not included in the computation of diluted EPS because their effect is anti-dilutive. Weighted-average shares issuable upon the conversion of preferred stock and 2016 Senior Notes of 13,115,165 and 14,356,215, respectively, for the year ended January 31, 2011, were not included in the computation of diluted EPS because their effect is anti-dilutive under the if-converted method.

 

  c)

Weighted-average performance shares for the years ended January 31, 2012, 2011 and 2010 were not included in the computation of diluted EPS because the performance criteria were not satisfied as of the end of the respective periods.

 

(2)

The accounting guidance on earnings per share requires that the number of diluted common shares used in computing the diluted per-share amount for earnings from continuing operations also be used in computing the diluted per-share amount for net earnings (loss) even if those amounts are anti-dilutive to the diluted per-share amount for net earnings (loss). Certain dilutive common shares had such an effect for the year ended January 31, 2011.