Net Income Per Unit

12 Months Ended

Dec. 31, 2011

Net (loss) income per AllianceBernstein Unit:

Net Income Per Unit

4. Net Income Per Unit

Basic net (loss) income per unit is derived by reducing net (loss) income for the 1% general partnership interest and dividing the remaining 99% by the basic weighted average number of units outstanding for each year. Diluted net (loss) income per unit is derived by reducing net (loss) income for the 1% general partnership interest and dividing the remaining 99% by the total of the basic weighted average number of units outstanding and the dilutive unit equivalents resulting from outstanding compensatory options to buy Holding Units as follows:

	Years Ended December 31,
	2011			2010		2009
	(in thousands, except per unit amounts)
Net (loss) income attributable to AllianceBernstein Unitholders	$	(174,768	)	$	442,419	$	556,127
Weighted average units outstanding-basic		278,018			275,415		266,300
Dilutive effect of compensatory options to buy Holding Units		-			1,639		244
Weighted average units outstanding-diluted		278,018			277,054		266,544
Basic net (loss) income per AllianceBernstein Unit	$	(0.62	)	$	1.59	$	2.07
Diluted net (loss) income per AllianceBernstein Unit	$	(0.62	)	$	1.58	$	2.07

For the years ended December 31, 2011, 2010 and 2009, we excluded 3,813,567, 4,783,472 and 5,752,877 options, respectively, from the diluted net (loss) income per unit computation due to their anti-dilutive effect.

The 2011 net (loss) income per unit includes the one-time, non-cash deferred compensation charge of $587.1 million taken in the fourth quarter. See further discussion above in Note 2, Deferred Compensation Plans.