Earnings per Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Summary of basic earnings per share

For the three months ended March 31, 2018 and 2017, the Company’s basic earnings per share was determined as follows:

	For the Three Months Ended March 31,
	2018		2017
	(in thousands, except share and per share amounts)
Net Income for Basic Earnings per Share Allocated to:
Class A Common Stock	$	3,523	$	2,334
Participating Shares of Restricted Class A Common Stock	—		2
Total Net Income for Basic Earnings per Share	$	3,523	$	2,336
Basic Weighted-Average Shares Outstanding	18,015,368		17,350,367
Add: Participating Shares of Restricted Class A Common Stock1	—		10,786
Total Basic Weighted-Average Shares Outstanding	18,015,368		17,361,153
Basic Earnings per Share	$	0.20	$	0.13

1 Certain unvested shares of Class A common stock granted to employees have nonforfeitable rights to dividends and therefore participate fully in the results of the Company from the date they are granted. They are included in the computation of basic earnings per share using the two-class method for participating securities.

Summary of diluted net income

For the three months ended March 31, 2018 and 2017, the Company’s diluted net income was determined as follows: 

	For the Three Months Ended March 31,
	2018		2017
	(in thousands)
Net Income Attributable to Non-Controlling Interests of Pzena Investment Management, LLC	$	14,113	$	10,120
Less: Assumed Corporate Income Taxes	3,410		3,752
Assumed After-Tax Income of Pzena Investment Management, LLC	10,703		6,368
Net Income of Pzena Investment Management, Inc.	3,523		2,336
Diluted Net Income	$	14,226	$	8,704

Summary of diluted earnings per share

For the three months ended March 31, 2018 and 2017, the Company’s diluted earnings per share were determined as follows:

	For the Three Months Ended March 31,
	2018		2017
	(in thousands, except share and per share amounts)
Diluted Net Income Allocated to:
Class A Common Stock	$	14,216	$	8,694
Participating Shares of Restricted Class A Common Stock	—		2
Participating Class B Units	10		8
Total Diluted Net Income Attributable to Shareholders	$	14,226	$	8,704
Total Basic Weighted-Average Shares Outstanding	18,015,368		17,361,153
Dilutive Effect of Class B Units	51,032,975		51,097,254
Dilutive Effect of Options 1	1,603,865		508,963
Dilutive Effect of Phantom Class B Units & Phantom Shares of Class A Common Stock	1,517,654		1,791,662
Dilutive Effect of Restricted Shares of Class A Common Stock 2	67,500		70,780
Dilutive Weighted-Average Shares Outstanding	72,237,362		70,829,812
Add: Participating Class B Units3	48,600		64,886
Total Dilutive Weighted-Average Shares Outstanding	72,285,962		70,894,698
Diluted Earnings per Share	$	0.20	$	0.12

1 Represents the dilutive effect of options to purchase operating company Class B units, Delayed Exchange Class B units, and Class A common stock.

2 Certain restricted shares of Class A common stock granted to employees are not entitled to dividend or dividend equivalent payments until they are vested and are therefore non-participating securities and are not included in the computation of basic earnings per share. They are included in the computation of diluted earnings per share when the effect is dilutive using the treasury stock method.

3 Unvested Class B Units granted to employees have nonforfeitable rights to dividend equivalent distributions and therefore participate fully in the results of the operating company's operations from the date they are granted. They are included in the computation of diluted earnings per share using the two-class method for participating securities.