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Earnings Per Common Share
 9 Months Ended
Sep. 30, 2014
Earnings Per Common Share  
Earnings Per Common Share

(15) 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 September 30,

 

Nine Months Ended September 30,

 

 

 

2014

 

2013

    

2014

    

2013

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
251,059 

 

$
227,033 

 

$
707,215 

 

$
672,483 

 

Noncontrolling interests’ share in continuing operations

 

 
(3,405)

 

 
(3,055)

 

 
(10,134)

 

 
(9,442)

 

Income from continuing operations applicable to HCP, Inc.

 

 
247,654 

 

 
223,978 

 

 
697,081 

 

 
663,041 

 

Participating securities’ share in continuing operations

 

 
(446)

 

 
(474)

 

 
(1,999)

 

 
(1,330)

 

Income from continuing operations applicable to common shares

 

 
247,208 

 

 
223,504 

 

 
695,082 

 

 
661,711 

 

Discontinued operations

 

 

 —

 

 
9,825 

 

 
29,746 

 

 
14,884 

 

Noncontrolling interests’ share in discontinued operations

 

 

 —

 

 
(47)

 

 
(1,177)

 

 
(183)

 

Net income applicable to common shares

 

$
247,208 

 

$
233,282 

 

$
723,651 

 

$
676,412 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares

 

 
458,799 

 

 
455,345 

 

 
458,119 

 

 
454,553 

 

Dilutive potential common shares

 

 
342 

 

 
733 

 

 
354 

 

 
835 

 

Diluted weighted average common shares

 

 
459,141 

 

 
456,078 

 

 
458,473 

 

 
455,388 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
0.54 

 

$
0.49 

 

$
1.52 

 

$
1.46 

 

Discontinued operations

 

 

 —

 

 
0.02 

 

 
0.06 

 

 
0.03 

 

Net income applicable to common shares

 

$
0.54 

 

$
0.51 

 

$
1.58 

 

$
1.49 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$
0.54 

 

$
0.49 

 

$
1.52 

 

$
1.46 

 

Discontinued operations

 

 

 —

 

 
0.02 

 

 
0.06 

 

 
0.03 

 

Net income applicable to common shares

 

$
0.54 

 

$
0.51 

 

$
1.58 

 

$
1.49 

 

 

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 requires the use of the two-class method when computing basic and diluted earnings per share. Options to purchase approximately 1.1 million and 0.9 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 three months ended September 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 0.1 million and 7,500 shares of common stock during the three months ended September 30, 2014 and 2013, respectively, were not included because they are anti-dilutive. Additionally, 6 million shares issuable upon conversion of 4 million DownREIT units during the three months ended September 30, 2014 and 2013 were not included because they are anti-dilutive.