Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Significant Accounting Policies [Abstract]

Summary of basic earnings per share

Basic earnings per share is computed by dividing the Company's net income attributable to its common stockholders by the weighted average number of shares outstanding during the reporting period.  For the three and six months ended June 30, 2012 and 2011, the Company's basic earnings per share was determined as follows:

	For the Three				For the Six
	Months Ended June 30,				Months Ended June 30,
	2012		2011		2012		2011
	(in thousands, except share and per share amounts)
Net Income for Basic Earnings per Share	$	614	$	859	$	1,621	$	2,516
Basic Weighted-Average Shares Outstanding		10,565,406		9,904,187		10,570,247		9,646,298
Basic Earnings per Share	$	0.06	$	0.09	$	0.15	$	0.26

Summary of diluted net income

For the three and six months ended June 30, 2012 and 2011, the Company's diluted net income was determined as follows:

	For the Three				For the Six
	Months Ended June 30,				Months Ended June 30,
	2012		2011		2012		2011
	(in thousands)
Net Income Attributable to Non-Controlling Interests of
Pzena Investment Management, LLC	$	6,508	$	9,740	$	14,717	$	19,030
Less: Assumed Corporate Income Taxes		2,789		4,177		6,306		8,156
Assumed After-Tax Income of Pzena Investment Management, LLC	$	3,719	$	5,563	$	8,411	$	10,874
Assumed After-Tax Income of Pzena Investment Management, LLC	$	3,719	$	5,563	$	8,411	$	10,874
Net Income of Pzena Investment Management, Inc		614		859		1,621		2,516
Diluted Net Income 1	$	4,333	$	6,422	$	10,032	$	13,390

(1) Since the assumed incremental income results in an increase per share income for the three months ended June 30, 2012, the assumed effects of the conversion of operating company Class B units.

Summary of diluted earnings per share

For the three and six months ended June 30, 2012 and 2011, the Company's diluted earnings per share were determined as follows:

	For the Three				For the Six
	Months Ended June 30,				Months Ended June 30,
	2012		2011		2012		2011
	(In thousands, except share and per share amounts)
Diluted Net Income Allocated to:
Class A Common Stock	$	614	$	859	$	9,994	$	13,390
Participating Class B Restricted Units		-		-		38		-
Total Diluted Net Income Attributable to Shareholders	$	614	$	859	$	10,032	$	13,390
Basic Weighted-Average Shares Outstanding		10,565,406		9,904,187		10,570,247		9,646,298
Dilutive Effect of Operating Company B Units		-		-		54,010,518		54,742,805
Dilutive Effect of Options		-		-		463,088		667,194
Dilutive Effect of Phantom Units		-		-		105,987		14,415
Dilutive Weighted-Average Shares Outstanding		10,565,406		9,904,187		65,149,840		65,070,712
Add: Participating Class B Restricted Units		-		-		245,487		-
Total Dilutive Weighted-Average Shares Outstanding		10,565,406		9,904,187		65,395,327		65,070,712
Diluted Earnings per Share	$	0.06	$	0.09	$	0.15	$	0.21

Summary of antidilutive financial instruments

For the three and six months ended June 30, 2012 and 2011, the following operating company membership units, participating restricted Class B units, options to purchase operating company membership units, options to purchase shares of Class A common stock and operating company phantom units were excluded from the calculation of diluted net income per share, as their inclusion would have had an antidilutive effect for the respective periods:

	For the Three				For the Six
	Months Ended June 30,				Months Ended June 30,
	2012		2011		2012		2011
Operating Company Units		54,043,981		54,484,796		-		-
Options to Purchase Operating Company Units		3,926,432		3,648,117		3,463,344		989,476
Options to Purchase Shares of Class A Common Stock		971,750		961,750		971,750		-
Phantom Operating Company Units		294,339		152,701		188,352		30,000
Participating Class B Restricted Units		245,487		-		-		-
Total		59,481,989		59,247,364		4,623,446		1,019,476

Summary of fair value assets

The following table presents these instruments' fair value at June 30, 2012:

	Leve1 1		Level 2		Level 3
	(in thousands)
Assets:
Equity Securities	$	1,899	$	-	$	-
Investments in Mutual Funds		2,700		-		-
Total Fair Value	$	4,599	$	-	$	-

The following table presents these instruments' fair value at December 31, 2011:

	Leve1 1		Level 2		Level 3
	(in thousands)
Assets:
Equity Securities	$	2,285	$	-	$	-
Investments in Mutual Funds		2,634		-		-
Total Fair Value	$	4,919	$	-	$	-