EARNINGS PER COMMON UNIT

6 Months Ended

Jun. 30, 2016

EARNINGS PER COMMON UNIT

EARNINGS PER COMMON UNIT

12. EARNINGS PER COMMON UNIT

Basic earnings per common unit is computed by dividing income available to common unitholders by the weighted‑average number of common units outstanding during the period. Diluted earnings per common unit is computed using the more dilutive method of either the two-class method or the treasury stock method.

For the three months ended June 30, 2016 and 2015, and the six months ended June 30, 2016, the treasury stock method was the more dilutive method for the unvested restricted units and no participating securities had rights to undistributed earnings. For the six months ended June 30, 2015, the two-class method was the more dilutive method for the unvested restricted units. The computation of diluted earnings per common unit for the three and six months ended June 30, 2016 and 2015 excludes the following options, restricted units and AOG Units, as their effect would have been anti-dilutive:

	For the three months ended				For the six months ended
	June 30,				June 30,
	2016		2015		2016		2015
Options		23,363,784		25,013,577		23,429,835		25,018,280
Restricted units		64,516		166		94,363		381
AOG units		132,350,586		132,436,444		132,366,701		132,427,727

The following table presents the computation of basic and diluted earnings per common unit:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Net income attributable to Ares Management, L.P.	$	37,574	$	12,086	$	34,484	$	30,542
Earnings distributed to participating securities (restricted units)		(180)		(99)		(408)		(409)
Preferred stock dividends		(4)		(4)		(8)		(7)
Net income available to common unitholders	$	37,390	$	11,983	$	34,068	$	30,126
Basic weighted-average common units		80,715,723		80,671,316		80,699,387		80,669,527
Basic earnings per common unit	$	0.46	$	0.15	$	0.42	$	0.37
Net income attributable to Ares Management, L.P.	$	37,574	$	12,086	$	34,484	$	30,542
Earnings distributed to participating securities (restricted units)		—		—		—		(409)
Preferred stock dividends		(4)		(4)		(8)		(7)
Net income available to common unitholders	$	37,570	$	12,082	$	34,476	$	30,126
Effect of dilutive units:
Restricted units		1,616,470		1,049,603		1,053,081		—
Diluted weighted-average common units		82,332,193		81,720,919		81,752,468		80,669,527
Diluted earnings per common unit	$	0.46	$	0.15	$	0.42	$	0.37