XML 64 R45.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Share Incentive Plans (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] |
Summary of Terms of Awards Generally Granted to Employees | The following table summarizes the terms of Awards generally granted to employees:
|  | Options |  | Restricted Shares |  | Restricted Units
Overview |  | Options exercised after vesting result in issuance of new Common Shares. |  | Restricted shareholders generally have the same voting rights and receive quarterly dividend payments on their shares at the same rate and on the same date as any other Common Share holder (1). |  | When certain conditions are met, restricted units convert into an equal number of OP Units, which the holder may exchange for Common Shares on a one-for-one basis or at the option of the Company the cash value of such shares. Restricted unitholders receive quarterly distribution payments on their restricted units at the same rate and on the same date as any other OP Unit holder (1).
Grant/Exercise Price |  | Granted at the fair market value of Common Shares as of the grant date. |  | Granted at the fair market value of Common Shares as of the grant date. |  | Granted at varying discount rates to the fair market value of Common Shares as of the grant date (2).
Vesting Period |  | In three equal installments over a three-year period from the grant date. |  | Three years from the grant date. |  | Three years from the grant date.
Expiration |  | Ten years from the grant date. |  | Not applicable. |  | Ten years from the grant date (2).
Upon Employee Termination |  | Unvested options are canceled. |  | Unvested restricted shares are canceled. |  | Unvested restricted units are canceled.
(1) | Dividends/distributions paid on unvested restricted shares and units are included as a component of retained earnings and Noncontrolling Interest – Operating Partnership/Limited Partners Capital, respectively, and have not been considered in reducing net income available to Common Shares/Units in a manner similar to the Company’s preferred share/preference unit dividends for the earnings per share/Unit calculation.
(2) | A restricted unit will automatically convert to an OP Unit when the capital account of each restricted unit increases (“books-up”) to a specified target. The probability of a book-up occurring within the ten-year contractual life along with the liquidity risk associated with various hold period restrictions are both reflected in the discount. If the capital target is not attained within ten years following the date of issuance, the restricted unit will automatically be canceled and no compensation will be payable to the holder of such canceled restricted unit. If the capital target is attained and the restricted unit is converted to an OP Unit, it will not expire.
Summary of Valuation Method of Share Options | The fair value of the Option grants is recognized over the requisite service/vesting period of the Options. The fair value for the Company’s Options was estimated at the time the Options were granted using the Black-Scholes option pricing model with the primary grant in each year having the following weighted average assumptions:
|  | 2021 |  |  | 2020 |  |  | 2019 |
Expected volatility (1) |  |  | 21.3 | % |  |  | 15.2 | % |  |  | 16.3 | %
Expected life (2) |  | 5 years |  |  | 5 years |  |  | 5 years |
Expected dividend yield (3) |  |  | 3.23 | % |  |  | 3.04 | % |  |  | 3.10 | %
Risk-free interest rate (4) |  |  | 0.50 | % |  |  | 1.32 | % |  |  | 2.43 | %
Exercise price per share (5) |  | $ | 67.48 |  |  | $ | 83.08 |  |  | $ | 72.02 |
Option valuation per share |  | $ | 7.96 |  |  | $ | 7.23 |  |  | $ | 8.06 |
(1) | Expected volatility – Estimated based on the historical five-year volatility (the period matching the expected life) of EQR’s share price measured on a monthly basis.
(2) | Expected life – Approximates the actual weighted average life of all Options granted since the Company went public in 1993.
(3) | Expected dividend yield – Calculated by averaging the historical annual yield on EQR shares for a period matching the expected life of each grant, with the annual yield calculated by dividing actual regular dividends (excluding any special dividends) by the average price of EQR’s shares in a given year.
(4) | Risk-free interest rate – The most current U.S. Treasury rate available at the grant date for a period matching the expected life of each grant.
(5) | Exercise price per share – The closing share price of the Common Shares on the grant date.
Summary of Terms of Each Retirement Eligibility Category | The following table summarizes the terms of each retirement eligibility category.
|  | Age 62 for Employees |  | Rule of 70 for Employees |  | Age 72 for Trustees
Eligibility |  | For employees hired prior to January 1, 2009 and who were age 59 or older as of February 1, 2019. |  | All employees (1). |  | All non-employee Trustees.
Effect on unvested restricted shares, restricted units and Options |  | Awards immediately vest and Options continue to be exercisable for the balance of the applicable ten-year option period. |  | Awards continue to vest per the original vesting schedule, subject to certain conditions, and Options continue to be exercisable for the balance of the applicable ten-year option period. |  | Awards immediately vest and Options continue to be exercisable for the balance of the applicable ten-year option period.
Effect on LTI Plan |  | Awards are prorated in proportion to the number of days worked in the first year of the three-year performance period and the individual does not receive any payout of shares or units until the final payout is determined at the end of the three-year performance period.
(1) | The Rule of 70 is met when an employee’s years of service with the Company (which must be at least 15 years) plus his or her age (which must be at least 55 years) on the date of termination equals or exceeds 70 years. In addition, the employee must give the Company at least six months’ advance written notice of his or her intention to retire along with agreeing to certain other conditions.
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan | The following tables summarize compensation information regarding the restricted shares, restricted units, Options and Employee Share Purchase Plan (“ESPP”) for the three years ended December 31, 2021, 2020 and 2019.
|  | Year Ended December 31, 2021 |
|  | Compensation Expense |  |  | Compensation Capitalized |  |  | Restricted Units/Options In-Lieu of Bonus (1) |  |  | Compensation Equity |  |  | Dividends Incurred |
Restricted shares (2) |  | $ | 7,258 |  |  | $ | 1,131 |  |  | $ | — |  |  | $ | 8,389 |  |  | $ | 761 |
Restricted units (2) |  |  | 16,689 |  |  |  | 70 |  |  |  | 1,038 |  |  |  | 17,797 |  |  |  | 1,254 |
Options |  |  | 2,980 |  |  |  | 121 |  |  |  | — |  |  |  | 3,101 |  |  |  | — |
ESPP discount |  |  | 883 |  |  |  | 108 |  |  |  | — |  |  |  | 991 |  |  |  | — |
Total |  | $ | 27,810 |  |  | $ | 1,430 |  |  | $ | 1,038 |  |  | $ | 30,278 |  |  | $ | 2,015 |
|  | Year Ended December 31, 2020 |
|  | Compensation Expense |  |  | Compensation Capitalized |  |  | Restricted Units/Options In-Lieu of Bonus (1) |  |  | Compensation Equity |  |  | Dividends Incurred |
Restricted shares (2) |  | $ | 10,053 |  |  | $ | 1,172 |  |  | $ | — |  |  | $ | 11,225 |  |  | $ | 1,172 |
Restricted units (2) |  |  | 10,103 |  |  |  | 80 |  |  |  | 1,743 |  |  |  | 11,926 |  |  |  | 1,855 |
Options |  |  | 2,156 |  |  |  | 193 |  |  |  | — |  |  |  | 2,349 |  |  |  | — |
ESPP discount |  |  | 862 |  |  |  | 82 |  |  |  | — |  |  |  | 944 |  |  |  | — |
Total |  | $ | 23,174 |  |  | $ | 1,527 |  |  | $ | 1,743 |  |  | $ | 26,444 |  |  | $ | 3,027 |
|  | Year Ended December 31, 2019 |
|  | Compensation Expense |  |  | Compensation Capitalized |  |  | Restricted Units/Options In-Lieu of Bonus (1) |  |  | Compensation Equity |  |  | Dividends Incurred |
Restricted shares (2) |  | $ | 11,522 |  |  | $ | 916 |  |  | $ | — |  |  | $ | 12,438 |  |  | $ | 979 |
Restricted units (2) |  |  | 9,905 |  |  |  | 240 |  |  |  | 3,265 |  |  |  | 13,410 |  |  |  | 825 |
Options |  |  | 2,420 |  |  |  | 254 |  |  |  | 1 |  |  |  | 2,675 |  |  |  | — |
ESPP discount |  |  | 602 |  |  |  | 40 |  |  |  | — |  |  |  | 642 |  |  |  | — |
Total |  | $ | 24,449 |  |  | $ | 1,450 |  |  | $ | 3,266 |  |  | $ | 29,165 |  |  | $ | 1,804 |
(1) | The Company allows eligible officers the ability to receive immediately vested restricted units (subject to the book-up provisions described above and a two-year hold restriction) or immediately vested Options in-lieu of any percentage of their annual cash bonus.
(2) | Includes LTI plan awards granted under the executive compensation program.
Award Activity of the Share Incentive Plans | The table below summarizes the Award activity of the Share Incentive Plans for the three years ended December 31, 2021, 2020 and 2019:
|  | Common Shares Subject to Options |  |  | Weighted Average Exercise Price per Option |  |  | Restricted Shares |  |  | Weighted Average Fair Value per Restricted Share |  |  | Restricted Units |  |  | Weighted Average Fair Value per Restricted Unit |
Balance at December 31, 2018 |  |  | 7,112,235 |  |  | $ | 52.35 |  |  |  | 299,425 |  |  | $ | 66.52 |  |  |  | 1,139,848 |  |  | $ | 71.07 |
Awards granted (1) |  |  | 234,147 |  |  | $ | 72.10 |  |  |  | 163,799 |  |  | $ | 73.96 |  |  |  | 141,772 |  |  | $ | 67.22 |
Awards exercised/vested |  |  | (1,745,050 | ) |  | $ | 44.72 |  |  |  | (151,321 | ) |  | $ | 75.41 |  |  |  | (422,784 | ) |  | $ | 70.77 |
Awards forfeited |  |  | (30,489 | ) |  | $ | 61.92 |  |  |  | (5,197 | ) |  | $ | 65.35 |  |  |  | (552 | ) |  | $ | 69.43 |
Awards expired |  |  | (3,299 | ) |  | $ | 40.39 |  |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Balance at December 31, 2019 |  |  | 5,567,544 |  |  | $ | 55.52 |  |  |  | 306,706 |  |  | $ | 66.15 |  |  |  | 858,284 |  |  | $ | 64.95 |
Awards granted (1) |  |  | 317,731 |  |  | $ | 76.26 |  |  |  | 179,911 |  |  | $ | 77.44 |  |  |  | 249,263 |  |  | $ | 72.00 |
Awards exercised/vested |  |  | (239,695 | ) |  | $ | 50.31 |  |  |  | (131,792 | ) |  | $ | 66.32 |  |  |  | (227,747 | ) |  | $ | 68.47 |
Awards forfeited |  |  | (1,344 | ) |  | $ | 72.69 |  |  |  | (1,191 | ) |  | $ | 73.45 |  |  |  | — |  |  | $ | — |
Awards expired |  |  | (1,484 | ) |  | $ | 47.18 |  |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Balance at December 31, 2020 |  |  | 5,642,752 |  |  | $ | 56.91 |  |  |  | 353,634 |  |  | $ | 71.81 |  |  |  | 879,800 |  |  | $ | 66.78 |
Awards granted (1) |  |  | 489,853 |  |  | $ | 67.58 |  |  |  | 96,224 |  |  | $ | 70.46 |  |  |  | 190,742 |  |  | $ | 60.71 |
Awards exercised/vested |  |  | (1,710,692 | ) |  | $ | 50.09 |  |  |  | (133,351 | ) |  | $ | 62.89 |  |  |  | (181,531 | ) |  | $ | 62.01 |
Awards forfeited |  |  | (23,317 | ) |  | $ | 73.33 |  |  |  | (6,631 | ) |  | $ | 74.31 |  |  |  | (35,580 | ) |  | $ | 59.82 |
Awards expired |  |  | (10,763 | ) |  | $ | 68.00 |  |  |  | — |  |  | $ | — |  |  |  | — |  |  | $ | — |
Balance at December 31, 2021 |  |  | 4,387,833 |  |  | $ | 60.65 |  |  |  | 309,876 |  |  | $ | 75.17 |  |  |  | 853,431 |  |  | $ | 66.11 |
(1) | Includes LTI plan awards granted under the executive compensation program.
|  | Amounts in thousands except per share amounts |
|  | Year Ended December 31, |
|  | 2021 |  |  | 2020 |  |  | 2019 |
Weighted average grant date fair value per share for Options granted |  | $ | 7.98 |  |  | $ | 6.74 |  |  | $ | 8.05 |
Aggregate intrinsic value of Options exercised (1) |  | $ | 47,413 |  |  | $ | 7,569 |  |  | $ | 58,066 |
Fair value of restricted shares vested |  | $ | 9,222 |  |  | $ | 10,559 |  |  | $ | 11,133 |
Fair value of restricted units vested |  | $ | 12,468 |  |  | $ | 18,711 |  |  | $ | 29,149 |
(1) | These values were calculated as the difference between the strike price of the underlying awards and the per share price at which each respective award was exercised.
Information Regarding Options Outstanding and Exercisable | The following table summarizes information regarding Options outstanding and exercisable at December 31, 2021 (aggregate intrinsic value is in thousands):
|  | Options |  |  | Weighted Average Remaining Contractual Life in Years |  |  | Weighted Average Exercise Price |  |  | Aggregate Intrinsic Value (1) |
Options Outstanding |  |  | 4,387,833 |  |  |  | 5.37 |  |  | $ | 60.65 |  |  | $ | 130,999 |
Options Exercisable |  |  | 3,710,888 |  |  |  | 4.76 |  |  | $ | 58.70 |  |  | $ | 118,015 |
Vested and expected to vest |  |  | 666,334 |  |  |  | 8.71 |  |  | $ | 71.33 |  |  | $ | 12,775 |
(1) | The aggregate intrinsic values were calculated as the excess, if any, between the Company’s closing share price of $90.50 per share on December 31, 2021 and the strike price of the underlying awards.
LTI Awards [Member] |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] |
Summary of Weighted Average Fair Value for Each Restricted Share/Unit | The grant date fair value of the TSR portion of the LTI awards is estimated using a multifactor Monte Carlo model to determine share prices for an absolute award for which the payout of the award only depends on EQR’s TSR and a set of relative awards for which the payout of the award depends on the spread of EQR’s TSR to the TSR of two indices: (a) the FTSE Nareit Apartment Index; and (b) the FTSE Nareit Equity Index. The grant date fair value of the Normalized FFO portion of the LTI awards is estimated using the closing price of EQR Common Shares on the grant date for the restricted shares and a discounted closing price of EQR Common Shares on the grant date for the restricted units to reflect the “book-up” and liquidity risk inherent in the units. The individual prices determined above are then weighted to arrive at the final values for each restricted share/unit as follows:
|  | 2021 |  |  | 2020 |  |  | 2019 |
Weighted average fair value per restricted share |  | $ | 61.73 |  |  | $ | 75.89 |  |  | $ | 65.36 |
Weighted average fair value per restricted unit |  | $ | 59.82 |  |  | $ | 72.69 |  |  | $ | 63.12 |

X
- Definition Schedule of general terms of awards. + References No definition available. + Details
Name: | eqr_ScheduleOfGeneralTermsOfAwardsTableTextBlock
Namespace Prefix: | eqr_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary of terms of each retirement eligibility category. + References No definition available. + Details
Name: | eqr_SummaryOfTermsOfEachRetirementEligibilityCategoryTableTextBlock
Namespace Prefix: | eqr_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5047-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of cost recognized for award under share-based payment arrangement by plan. Includes, but is not limited to, related tax benefit. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(1) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfCompensationCostForShareBasedPaymentArrangementsAllocationOfShareBasedCompensationCostsByPlanTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table. + References No definition available. + Details
Name: | us-gaap_ShareBasedCompensationArrangementByShareBasedPaymentAwardLineItems
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_PlanNameAxis=eqr_LongTermIncentiveAwardsMember
Namespace Prefix: |
Data Type: | na
Balance Type: |
Period Type: |