Summary of Significant Accounting Policies

We have not made any material changes during the period covered by this report to our significant accounting policies included in our 2012 Annual Report on Form 10-K.

Earnings Per Share (EPS)

We calculate basic EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. We calculate diluted EPS by dividing the net income attributable to common stockholders and holders of equity in our consolidated operating partnership for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method.



	Three Months Ended March 31,
	2013		2012
Numerator (in thousands):
Net income attributable to common stockholders	$	12,082	$	5,386
Add back: Net income attributable to noncontrolling interests in our Operating Partnership	2,416		1,210
Numerator for diluted net income attributable to all equity holders	$	14,498	$	6,596
Denominator (in thousands):
Weighted average shares of common stock outstanding - basic	142,440		138,399
Effect of dilutive securities ⁽¹⁾ :
Operating partnership units and vested long term incentive plan (LTIP) units	28,483		31,101
Stock options	3,148		1,861
Unvested LTIP units	508		455
Weighted average shares of common stock and common stock equivalents outstanding - diluted	174,579		171,816
Basic earnings per share:
Net income attributable to common stockholders per share	$	0.08	$	0.04
Diluted earnings per share:
Net income attributable to common stockholders per share	$	0.08	$	0.04


(1)	Diluted shares represent ownership in our company through shares of common stock, units in our operating partnership and other convertible equity instruments. Basic and diluted shares are calculated in accordance with GAAP, and include common stock plus dilutive equity instruments, as appropriate.

Income Taxes

We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. Provided we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings we derive through our taxable REIT subsidiaries (TRS).

Recently Issued Accounting Literature

Changes to GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standard Updates (ASUs). We consider the applicability and impact of all ASUs.

In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities (Topic 210). The amendments in this ASU affect all entities that have financial instruments and derivative instruments that are offset in the financial statements because they are subject to enforceable master netting arrangements or similar agreements. The amendments in this ASU require disclosure of information about the effects of offsetting and related arrangements, and will be effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods, which for us means the first quarter of 2013. The ASU will require retrospective disclosures for all comparative periods presented. We adopted ASU 2011-11 during the first quarter of 2013, and it did not have a material effect on our financial position or results of operations, as it only affects disclosure.

In July 2012, the FASB issued ASU No. 2012-02, Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The amendments in this ASU will allow an entity to first assess a number of events and circumstances as qualitative factors to determine whether or not it is necessary to perform a quantitative impairment test. This ASU is effective for fiscal years, and interim periods within those years, beginning after September 15, 2012, which for us means the first quarter of 2013. We adopted ASU 2012-02 during the first quarter of 2013, and it did not have a material effect on our financial position or results of operations.

In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (Topic 210). The objective of this Update is to clarify the scope of ASU No. 2011-11 regarding embedded derivatives, repurchase agreements and securities lending transactions. This ASU will be effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods, which for us means the first quarter of 2013, and will require retrospective disclosures for all comparative periods presented. We adopted ASU 2013-01 during the first quarter of 2013, and it did not have a material effect on our financial position or results of operations, as it only affects disclosure.

In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Topic 220). The amendments in this Update supersede and replace the presentation requirements for reclassifications out of accumulated other comprehensive income for all public and private organizations. The amendments would require an entity to provide additional information about the changes in and the reclassifications out of accumulated other comprehensive income. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012, which for us means the first quarter of 2013. We adopted ASU 2013-02 during the first quarter of 2013, and it did not have a material effect on our financial position or results of operations, as it only affects disclosure.

In February 2013, the FASB issued ASU No. 2013-04, Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date (Topic 405): The amendments in this Update provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this Update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, which for us means the first quarter of 2014. We do not expect this ASU to have a material impact on our financial position or results of operations as we do not have any obligations within the scope of this ASU.

The FASB has not issued any other ASUs during 2013 that we expect to be applicable and have a material impact on our financial position or results of operations.