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Earnings Per Common Share
 12 Months Ended
Dec. 31, 2016
Earnings Per Common Share  
Earnings Per Common Share

NOTE 19.    Earnings Per Common Share

The following table illustrates the computation of basic and diluted earnings per share (dollars in thousands, except per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

2016

 

2015

 

2014

 

Numerator

    

 

    

    

 

    

    

 

    

 

Income from continuing operations

 

$
374,171

 

$
152,668

 

$
271,315

 

Noncontrolling interests’ share in continuing operations

 

 
(12,179)

 

 
(12,817)

 

 
(13,181)

 

Income from continuing operations applicable to HCP, Inc.

 

 
361,992

 

 
139,851

 

 
258,134

 

Participating securities’ share in continuing operations

 

 
(1,198)

 

 
(1,317)

 

 
(2,437)

 

Income from continuing operations applicable to common shares

 

 
360,794

 

 
138,534

 

 
255,697

 

Discontinued operations

 

 
265,755

 

 
(699,086)

 

 
665,276

 

Noncontrolling interests’ share in discontinued operations

 

 

 —

 

 

 —

 

 
(1,177)

 

Net income (loss) applicable to common shares

 

$
626,549

 

$
(560,552)

 

$
919,796

 

Denominator

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 
467,195

 

 
462,795

 

 
458,425

 

Dilutive potential common shares

 

 
208

 

 

 —

 

 
371

 

Diluted weighted average common shares

 

 
467,403

 

 
462,795

 

 
458,796

 

Basic earnings per common share

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
0.77

 

$
0.30

 

$
0.56

 

Discontinued operations

 

 
0.57

 

 
(1.51)

 

 
1.45

 

Net income (loss) applicable to common shares

 

$
1.34

 

$
(1.21)

 

$
2.01

 

Diluted earnings per common share

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
0.77

 

$
0.30

 

$
0.56

 

Discontinued operations

 

 
0.57

 

 
(1.51)

 

 
1.44

 

Net income (loss) applicable to common shares

 

$
1.34

 

$
(1.21)

 

$
2.00

 

 

Restricted stock and certain performance restricted stock units are considered participating securities, because dividend payments are not forfeited even if the underlying share-based award does not vest, and require the use of the two-class method when computing basic and diluted earnings per share.

Options to purchase 1.1 million and 1.4 million shares of common stock that had exercise prices in excess of the average market price of the common stock during the years ended December 31, 2016 and 2014, respectively, were not included because they are anti-dilutive. Additionally, 7 million shares, issuable upon conversion of 4 million DownREIT units during the year ended December 31, 2016 were not included because they are anti-dilutive. For the year ended December 31, 2015, the Company generated a net loss. The weighted-average basic shares outstanding was used in calculating diluted loss per share from continuing operations, as using diluted shares would be anti-dilutive to loss per share.