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Earnings Per Common Share
 6 Months Ended
Jun. 30, 2014
Earnings Per Common Share  
Earnings Per Common Share

(14) Earnings Per Common Share

 

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

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Numerator

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

222,279

 

$

213,897

 

$

456,156

 

$

445,450

 

Noncontrolling interests’ share in continuing operations

 

(3,394

)

(3,245

)

(6,729

)

(6,379

)

Income from continuing operations applicable to HCP, Inc.

 

218,885

 

210,652

 

449,427

 

439,071

 

Participating securities’ share in continuing operations

 

(489

)

(378

)

(1,552

)

(856

)

Income from continuing operations applicable to common shares

 

218,396

 

210,274

 

447,875

 

438,215

 

Discontinued operations

 

—

 

2,828

 

29,746

 

5,059

 

Noncontrolling interests’ share in discontinued operations

 

—

 

(79

)

(1,177

)

(144

)

Net income applicable to common shares

 

$

218,396

 

$

213,023

 

$

476,444

 

$

443,130

 

 

 

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

458,247

 

454,618

 

457,773

 

454,137

 

Dilutive potential common shares

 

341

 

813

 

361

 

887

 

Diluted weighted average common shares

 

458,588

 

455,431

 

458,134

 

455,024

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.48

 

$

0.46

 

$

0.98

 

$

0.96

 

Discontinued operations

 

—

 

0.01

 

0.06

 

0.02

 

Net income applicable to common shares

 

$

0.48

 

$

0.47

 

$

1.04

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

0.48

 

$

0.46

 

$

0.98

 

$

0.96

 

Discontinued operations

 

—

 

0.01

 

0.06

 

0.01

 

Net income applicable to common shares

 

$

0.48

 

$

0.47

 

$

1.04

 

$

0.97

 

 

Restricted stock and certain of the Company’s performance restricted stock units are considered participating securities, because dividend payments are not forfeited even if the underlying award does not vest, which require the use of the two-class method when computing basic and diluted earnings per share. Options to purchase approximately 1.4 million and 0.5 million shares of common stock that had an exercise price (including deferred compensation expense) in excess of the average closing market price of the Company’s common stock during the six months ended June 30, 2014 and 2013, respectively, were not included in the Company’s earnings per share calculations because they are anti-dilutive. Restricted stock and performance restricted stock units representing 0.8 million and 0.4 million shares of common stock during the six months ended June 30, 2014 and 2013, respectively, were not included because they are anti-dilutive. Additionally, 6.1 million shares issuable upon conversion of 4.0 million DownREIT units during the six months ended June 30, 2014 were not included because they are anti-dilutive. During the six months ended June 30, 2013, 6.0 million shares issuable upon conversion of 3.9 million DownREIT units were not included because they are anti-dilutive.