EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2018

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

For the three months ended March 31, 2018 and 2017, the two-class method was the more dilutive method for the unvested restricted units. No participating securities had rights to undistributed earnings during any period presented.

The computation of diluted earnings per common share for the three months ended March 31, 2018 and 2017 excludes the following options, restricted units and AOG Units, as their effect would have been anti-dilutive:



	For the Three Months Ended March 31,
	2018	2017
Options	17,411,780	21,334,689
Restricted units	16,352,546	15,070,871
AOG Units	—	130,403,174

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



	For the Three Months Ended March 31,
	2018			2017
Net income (loss) attributable to Ares Management, L.P. common shareholders	$	35,523		$	(46,559	)
Earnings distributed to participating securities (restricted units)	(1,899		)	(825		)
Net income (loss) available to common shareholders	$	33,624		$	(47,384	)
Basic weighted-average common shares	85,617,932			81,106,734
Basic earnings (loss) per common share	$	0.39		$	(0.58	)
Net income (loss) attributable to Ares Management, L.P. common shareholders	$	35,523		$	(46,559	)
Earnings distributed to participating securities (restricted units)	(1,899		)	(825		)
Incremental net income from assumed exchange of AOG Units	26,606			—
Net income (loss) available to common shareholders	$	60,230		$	(47,384	)
Effect of dilutive shares:
AOG Units	128,234,996			—
Diluted weighted-average common shares	213,852,928			81,106,734
Diluted earnings (loss) per common share	$	0.28		$	(0.58	)