
10.	Earnings Per Share and Earnings Per Unit

Equity Residential

The following tables set forth the computation of net income per share – basic and net income per share – diluted for the Company (amounts in thousands except per share amounts):



	Year Ended December 31,
	2013			2012			2011
Numerator for net income per share – basic:
(Loss) income from continuing operations	$	(168,174	)	$	160,298		$	(72,941	)
Allocation to Noncontrolling Interests – Operating Partnership, net	6,834			(6,417		)	3,880
Net loss (income) attributable to Noncontrolling Interests – Partially Owned Properties	538			(844		)	(832		)
Preferred distributions	(4,145		)	(10,355		)	(13,865		)
Premium on redemption of Preferred Shares	—			(5,152		)	—
(Loss) income from continuing operations available to Common Shares, net of Noncontrolling Interests	(164,947		)	137,530			(83,758		)
Discontinued operations, net of Noncontrolling Interests	1,991,415			688,682			963,478
Numerator for net income per share – basic	$	1,826,468		$	826,212		$	879,720
Numerator for net income per share – diluted (1):
Income from continuing operations				$	160,298
Net (income) attributable to Noncontrolling Interests – Partially Owned Properties				(844		)
Preferred distributions				(10,355		)
Premium on redemption of Preferred Shares				(5,152		)
Income from continuing operations available to Common Shares				143,947
Discontinued operations, net				720,906
Numerator for net income per share – diluted (1)	$	1,826,468		$	864,853		$	879,720
Denominator for net income per share – basic and diluted (1):
Denominator for net income per share – basic	354,305			302,701			294,856
Effect of dilutive securities:
OP Units				13,853
Long-term compensation shares/units				3,212
Denominator for net income per share – diluted (1)	354,305			319,766			294,856
Net income per share – basic	$	5.16		$	2.73		$	2.98
Net income per share – diluted	$	5.16		$	2.70		$	2.98
Net income per share – basic:
(Loss) income from continuing operations available to Common Shares, net of Noncontrolling Interests	$	(0.466	)	$	0.454		$	(0.284	)
Discontinued operations, net of Noncontrolling Interests	5.621			2.275			3.268
Net income per share – basic	$	5.155		$	2.729		$	2.984
Net income per share – diluted (1):
(Loss) income from continuing operations available to Common Shares	$	(0.466	)	$	0.450		$	(0.284	)
Discontinued operations, net	5.621			2.255			3.268
Net income per share – diluted	$	5.155		$	2.705		$	2.984
Distributions declared per Common Share outstanding	$	1.85		$	1.78		$	1.58


(1)	Potential common shares issuable from the assumed conversion of OP Units and the exercise/vesting of long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per share calculation as the Company had a loss from continuing operations for the years ended December 31, 2013 and 2011.

For additional disclosures regarding the employee share options and restricted shares, see Notes 2 and 12.

ERP Operating Limited Partnership

The following tables set forth the computation of net income per Unit – basic and net income per Unit – diluted for the Operating Partnership (amounts in thousands except per Unit amounts):



	Year Ended December 31,
	2013			2012			2011
Numerator for net income per Unit – basic and diluted (1):
(Loss) income from continuing operations	$	(168,174	)	$	160,298		$	(72,941	)
Net loss (income) attributable to Noncontrolling Interests – Partially Owned Properties	538			(844		)	(832		)
Allocation to Preference Units	(4,145		)	(10,355		)	(13,865		)
Allocation to premium on redemption of Preference Units	—			(5,152		)	—
(Loss) income from continuing operations available to Units	(171,781		)	143,947			(87,638		)
Discontinued operations, net	2,073,527			720,906			1,008,138
Numerator for net income per Unit – basic and diluted (1)	$	1,901,746		$	864,853		$	920,500
Denominator for net income per Unit – basic and diluted (1):
Denominator for net income per Unit – basic	368,038			316,554			308,062
Effect of dilutive securities:
Dilution for Units issuable upon assumed exercise/vesting of the Company's long-term compensation shares/units				3,212
Denominator for net income per Unit – diluted (1)	368,038			319,766			308,062
Net income per Unit – basic	$	5.16		$	2.73		$	2.98
Net income per Unit – diluted	$	5.16		$	2.70		$	2.98
Net income per Unit – basic:
(Loss) income from continuing operations available to Units	$	(0.466	)	$	0.454		$	(0.284	)
Discontinued operations, net	5.621			2.275			3.268
Net income per Unit – basic	$	5.155		$	2.729		$	2.984
Net income per Unit – diluted (1):
(Loss) income from continuing operations available to Units	$	(0.466	)	$	0.450		$	(0.284	)
Discontinued operations, net	5.621			2.255			3.268
Net income per Unit – diluted	$	5.155		$	2.705		$	2.984
Distributions declared per Unit outstanding	$	1.85		$	1.78		$	1.58


(1)	Potential Units issuable from the assumed exercise/vesting of the Company's long-term compensation shares/units are automatically anti-dilutive and therefore excluded from the diluted earnings per Unit calculation as the Operating Partnership had a loss from continuing operations for the years ended December 31, 2013 and 2011.

For additional disclosures regarding the employee share options and restricted shares, see Notes 2 and 12.