14.	EARNINGS PER SHARE

The following table calculates the Company’s earnings per share (“EPS”) and provides a reconciliation of net income (loss) from continuing operations and the number of common shares used in the computations of “basic” EPS, which utilizes the weighted-average number of common shares outstanding without regard to dilutive potential common shares, and “diluted” EPS, which includes all such shares (in thousands, except per share amounts):

	Three-Month Periods Ended June 30,						Six-Month Periods Ended June 30,
	2014			2013			2014			2013
Basic Earnings:
Continuing Operations:
Income from continuing operations	$	68,780		$	3		$	40,854		$	11,484
Plus: Income (loss) on disposition of real estate		1,472			(1,525	)		383			(1,582	)
Plus: Loss attributable to non-controlling interests		(347	)		(153	)		(501	)		(308	)
Write-off of preferred share original issuance costs		(1,943	)		(5,246	)		(1,943	)		(5,246	)
Preferred dividends		(6,259	)		(7,475	)		(12,867	)		(14,505	)
Less: Earnings attributable to unvested shares and operating partnership units		(464	)		(359	)		(777	)		(722	)
Basic—Income (loss) from continuing operations		61,239			(14,755	)		25,149			(10,879	)
Discontinued Operations:
Basic—Income (loss) from discontinued operations		6,643			(21,596	)		17,280			(26,526	)
Plus: (Loss) income attributable to non-controlling interests		(531	)		(42	)		1,361			(78	)
Basic—Net income (loss) attributable to DDR common shareholders after allocation to participating securities	$	67,351		$	(36,393	)	$	43,790		$	(37,483	)
Diluted Earnings:
Continuing Operations:
Basic—Income (loss) from continuing operations	$	61,703		$	(14,396	)	$	25,926		$	(10,157	)
Less: Earnings attributable to unvested shares and operating partnership units		(464	)		(359	)		(777	)		(722	)
Diluted—Income (loss) from continuing operations		61,239			(14,755	)		25,149			(10,879	)
Discontinued Operations:
Basic—Income (loss) from discontinued operations		6,112			(21,638	)		18,641			(26,604	)
Diluted—Net income (loss) attributable to DDR common shareholders after allocation to participating securities	$	67,351		$	(36,393	)	$	43,790		$	(37,483	)
Number of Shares:
Basic—Average shares outstanding		357,812			316,967			357,717			315,110
Effect of dilutive securities:
Stock options		483			—			459			—
Diluted—Average shares outstanding		358,295			316,967			358,176			315,110
Basic Earnings Per Share:
Income (loss) from continuing operations attributable to DDR common shareholders	$	0.17		$	(0.04	)	$	0.07		$	(0.04	)
Income (loss) from discontinued operations attributable to DDR common shareholders		0.02			(0.07	)		0.05			(0.08	)
Net income (loss) attributable to DDR common shareholders	$	0.19		$	(0.11	)	$	0.12		$	(0.12	)
Diluted Earnings Per Share:
Income (loss) from continuing operations attributable to DDR common shareholders	$	0.17		$	(0.04	)	$	0.07		$	(0.04	)
Income (loss) from discontinued operations attributable to DDR common shareholders		0.02			(0.07	)		0.05			(0.08	)
Net income (loss) attributable to DDR common shareholders	$	0.19		$	(0.11	)	$	0.12		$	(0.12	)

The following potentially dilutive securities are considered in the calculation of EPS as described below:

Potentially Dilutive Securities:

—

The Company’s senior convertible notes due 2040, which are convertible into common shares of the Company with a conversion price of $15.08 at June 30, 2014, were not included in the computation of diluted EPS for all periods presented because the Company’s common share price did not exceed 125% of the conversion price in these periods and would therefore be anti-dilutive.

—	Shares subject to issuance under the Company’s 2013 Value Sharing Equity Program were not considered in the computation of diluted EPS for the three- and six-month periods ended June 30, 2014, because the calculation was anti-dilutive.

—

At June 30, 2014 and 2013, the Company had 1,441,890 and 398,701 OP Units, respectively, outstanding. The exchange into common shares associated with the OP Units was not included in the computation of diluted shares outstanding for all periods presented because the effect of assuming conversion was anti-dilutive.