EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2019

Basic earnings per share of Class A common stock is computed by using the two-class method. Diluted earnings per share of Class A common stock is computed using the more dilutive method of either the two-class method or the treasury stock method.

The treasury stock method is used to determine potentially dilutive securities resulting from options and unvested restricted units granted under the Equity Incentive Plan. The two-class method is an earnings allocation method under which earnings per share is calculated for shares of Class A common stock and participating securities considering both dividends declared (or accumulated) and participation rights in undistributed earnings as if all such earnings had been distributed during the period. Because the holders of unvested restricted units have the right to participate in dividends when declared, the unvested restricted units are considered participating securities to the extent they are expected to vest.

For the year ended December 31, 2019, the treasury stock method was the more dilutive method. For the years ended December 31, 2018 and December 31, 2017, the two-class method was the more dilutive method. No participating securities had rights to undistributed earnings during any period presented.

The computation of diluted earnings per share for the years ended December 31, 2019, 2018 and 2017 excludes the following options, restricted units and AOG Units, as their effect would have been anti-dilutive:


	For the Year Ended December 31,
	2019	2018	2017
Options	—	19,194,615	21,001,916
Restricted units	82	15,970,004	14,105,481
AOG Units	116,802,160	121,296,583	130,244,013

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


	For the Year Ended December 31,
	2019		2018		2017
Net income attributable to Ares Management Corporation Class A common stockholders	$	127,184	$	35,320	$	54,478
Distributions on unvested restricted units	(7,670)		(6,948)		(3,588)
Net income available to Class A common stockholders	$	119,514	$	28,372	$	50,890
Basic weighted-average shares of Class A common stock	107,914,953		96,023,147		81,838,007
Basic earnings per share of Class A common stock	$	1.11	$	0.30	$	0.62
Net income attributable to Ares Management Corporation Class A common stockholders	$	127,184	$	35,320	$	54,478
Distributions on unvested restricted units	—		(6,948)		(3,588)
Net income available to Class A common stockholders	$	127,184	$	28,372	$	50,890
Effect of dilutive shares:
Restricted units	7,838,200		—		—
Options	4,124,276		—		—

Diluted weighted-average shares of Class A common stock	119,877,429		96,023,147		81,838,007
Diluted earnings per share of Class A common stock	$	1.06	$	0.30	$	0.62

Dividend declared and paid per Class A common stock	$	1.28	$	1.33	$	1.13