NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5. DISCONTINUED OPERATIONS 4. PER SHARE DATA Basic earnings per share is computed using income from continuing operations and the weighted average number  of common shares outstanding. Diluted earnings per share reflects common shares issuable from the assumed  conversion of common share options and awards granted and units convertible into common shares. Only those items  that have a dilutive impact on our basic earnings per share are included in diluted earnings per share. For the years  ended December 31, 2004 and 2003, 1.9 million units convertible into common shares were excluded from the diluted  earnings per share calculated as they were not dilutive. The following table presents information necessary to calculate basic and diluted earnings per share for the periods  indicated: The components of net income that are presented as income from discontinued operations include net operating  income, depreciation and property specific interest expense, if any. In addition, the net gain or loss on the disposal of  communities is presented in discontinued operations when recognized. Communities sold or held for sale which were  owned through our operating partnership have been allocated their portion of income related to common unitholders.  During 2004, we sold one operating property, with 552 apartment homes, located in Orlando, Florida, and designated  two additional operating properties, one of which is located in Tampa, Florida, and the other in Las Vegas, Nevada,  totaling 886 apartment homes, as held for sale. Subsequent to December 31, 2004, the operating property located in Las  Vegas was sold, and we expect the operating property located in Tampa will be sold during the second quarter of 2005. transforming camden 79 year ended december 31, in thousands, except per share amounts 2004 2003 2002 BASIC EARNINGS PER SHARE CALCULATION Income from continuing operations $ 30,556 $  26,841 $ 41,004 Income from discontinued operations, including gain on sale 10,785 2,589 33,608 Net income $ 41,341 $ 29,430 $ 74,612 Income from continuing operations – per share $ 0.74 $  0.68 $ 1.01 Income from discontinued operations - per share 0.26 0.07 0.83 Net income – per share $ 1.00 $ 0.75 $ 1.84 Weighted average number of common shares outstanding 41,430 39,355 40,441 DILUTED EARNINGS PER SHARE CALCULATION Income from continuing operations $ 30,556 $  26,841 $ 41,004 Income allocated to common units 41 35 1,656 Income from continuing operations, as adjusted 30,597 26,876 42,660 Income from discontinued operations, including gain on sale 10,785 2,589 33,759 Net income, as adjusted $ 41,382 $ 29,465 $ 76,419 Income from continuing operations, as adjusted – per share $ 0.72 $ 0.65 $ 0.97 Income from discontinued operations – per share 0.26 0.06 0.76 Net income, as adjusted – per share $ 0.98 $ 0.71 $  1.73 Weighted average common shares outstanding 41,430 39,355 40,441 Incremental shares issuable from assumed conversion of: Common share options and awards granted 434 1,433 1,313 Common units 562 566 2,462 Weighted average common shares outstanding, as adjusted 42,426 41,354 44,216