Earnings Per Share

3 Months Ended

Apr. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

M. Earnings Per Share

The Company’s restricted stock is considered a participating security pursuant to the two-class method for computing basic earnings per share (“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 reconciliation of the amounts used in the basic and diluted EPS computations is shown in the following table.

	Three Months Ended April 30,
	2012			2011
Numerators (in thousands)
Earnings from continuing operations attributable to Forest City Enterprises, Inc.	$	18,314		$	41,355
Dividends on preferred stock		(3,850	)		(3,850	)
Undistributed earnings allocated to participating securities		(468	)		(1,165	)
Earnings from continuing operations attributable to Forest City Enterprises, Inc. common shareholders—Basic		13,996			36,340
Undistributed earnings allocated to participating securities		468			1,165
Interest on convertible debt		1,110			1,798
Preferred distribution on Class A Common Units		—			358
Earnings from continuing operations attributable to Forest City Enterprises, Inc. common shareholders—Diluted	$	15,574		$	39,661
Net earnings attributable to Forest City Enterprises, Inc.	$	22,752		$	46,343
Dividends on preferred stock		(3,850	)		(3,850	)
Undistributed earnings allocated to participating securities		(611	)		(1,320	)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders—Basic		18,291			41,173
Undistributed earnings allocated to participating securities		611			1,320
Interest on convertible debt		1,110			1,798
Preferred distribution on Class A Common Units		—			358
Net earnings attributable to Forest City Enterprises, Inc. common shareholders—Diluted	$	20,012		$	44,649
Denominators
Weighted average shares outstanding—Basic		169,206,594			165,498,904
Effect of stock options and restricted stock		937,272			1,054,102
Effect of convertible debt		13,755,158			20,225,204
Effect of convertible Class A Common Units		3,646,755			3,646,755
Weighted average shares outstanding—Diluted (1)		187,545,779			190,424,965
Earnings Per Share
Earnings from continuing operations attributable to Forest City Enterprises, Inc. common shareholders—Basic	$	0.08		$	0.22
Earnings from continuing operations attributable to Forest City Enterprises, Inc. common shareholders—Diluted	$	0.08		$	0.21
Net earnings attributable to Forest City Enterprises, Inc. common shareholders—Basic	$	0.11		$	0.25
Net earnings attributable to Forest City Enterprises, Inc. common shareholders—Diluted	$	0.11		$	0.23

(1) Weighted-average options, restricted stock and performance shares of 4,485,328 and 3,443,125 for the three months ended April 30, 2012 and 2011, respectively, were not included in the computation of diluted EPS because their effect is anti-dilutive under the treasury stock method. Weighted-average shares issuable upon the conversion of the 2018 and 2016 Senior Notes of 19,744,345, for the three months ended April 30, 2012 were not included in the computation of diluted EPS because their effect is anti-dilutive under the if-converted method. Weighted-average shares issuable upon conversion of preferred stock of 14,550,257 for the three months ended April 30, 2012 and 2011 were not included in the computation of diluted EPS because their effect is anti-dilutive under the if-converted method.