Earnings Per Share

EPS is calculated using the two-class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity's capital structure includes either two or more classes of common stock or common stock and participating securities. HPU holders are current and former Company employees who purchased high performance common stock units under the Company's High Performance Unit (HPU) Program. These HPU units are treated as a separate class of common stock.

The following table presents a reconciliation of income (loss) from continuing operations used in the basic and diluted earnings per share calculations ($ in thousands, except for per share data):



	For the Years Ended December 31,
	2014			2013			2012
Income (loss) from continuing operations	$	(74,178	)	$	(220,768	)	$	(314,678	)
Net (income) loss attributable to noncontrolling interests	704			(718		)	1,500
Income from sales of real estate	89,943			86,658			63,472
Preferred dividends	(51,320		)	(49,020		)	(42,320		)
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders, HPU holders and Participating Security Holders	$	(34,851	)	$	(183,848	)	$	(292,026	)



	For the Years Ended December 31,
	2014			2013			2012
Earnings allocable to common shares:
Numerator for basic and diluted earnings per share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(33,722	)	$	(177,907	)	$	(282,452	)
Income (loss) from discontinued operations	—			623			(16,908		)
Gain from discontinued operations	—			21,515			26,363
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(33,722	)	$	(155,769	)	$	(272,997	)
Denominator for basic and diluted earnings per share:
Weighted average common shares outstanding for basic and diluted earnings per common share	85,031			84,990			83,742
Basic and diluted earnings per common share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to common shareholders	$	(0.40	)	$	(2.09	)	$	(3.37	)
Income (loss) from discontinued operations	—			0.01			(0.20		)
Gain from discontinued operations	—			0.25			0.31
Net income (loss) attributable to iStar Financial Inc. and allocable to common shareholders	$	(0.40	)	$	(1.83	)	$	(3.26	)



	For the Years Ended December 31,
	2014			2013			2012
Earnings allocable to High Performance Units:
Numerator for basic and diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(1,129	)	$	(5,941	)	$	(9,574	)
Income (loss) from discontinued operations	—			21			(573		)
Gain from discontinued operations	—			718			894
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(1,129	)	$	(5,202	)	$	(9,253	)
Denominator for basic and diluted earnings per HPU share:
Weighted average High Performance Units outstanding for basic and diluted earnings per share	15			15			15
Basic and diluted earnings per HPU share:
Income (loss) from continuing operations attributable to iStar Financial Inc. and allocable to HPU holders	$	(75.27	)	$	(396.07	)	$	(638.27	)
Income (loss) from discontinued operations	—			1.40			(38.20		)
Gain from discontinued operations	—			47.87			59.60
Net income (loss) attributable to iStar Financial Inc. and allocable to HPU holders	$	(75.27	)	$	(346.80	)	$	(616.87	)

For the years ended December 31, 2014, 2013 and 2012, the following shares were not included in the diluted EPS calculation because they were anti-dilutive (in thousands):



	For the Years Ended December 31,
	2014(1)	2013(1)	2012(1)
Joint venture shares	298	298	298
3.00% convertible senior unsecured notes	16,992	16,992	—
Series J convertible perpetual preferred stock	15,635	15,635	—
1.50% convertible senior unsecured notes	11,567	11,567	—

Explanatory Note:

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(1)	For the years ended December 31, 2014, 2013 and 2012, the effect of the Company's unvested Units, performance-based Units and CSEs were anti-dilutive.