Earnings Per Common Unit

Basic and diluted net income per common unit are calculated as follows:



	Year Ended December 31, 2015						Year Ended December 31, 2014						Year Ended December 31, 2013
	Basic			Diluted			Basic			Diluted			Basic			Diluted
Net income (loss) attributable to The Carlyle Group L.P.	$	(18,400,000	)	$	(18,400,000	)	$	85,800,000		$	85,800,000		$	104,100,000		$	104,100,000
Dilution of earnings due to participating securities with distribution rights	167,000			(1,743,000		)	(1,284,100		)	(1,303,600		)	(645,500		)	(880,000		)
Incremental net income (loss) from assumed exchange of Carlyle Holdings partnership units	—			(69,300,000		)	—			—			—			465,880,000
Net income attributable to common units	$	(18,233,000	)	$	(89,443,000	)	$	84,515,900		$	84,496,400		$	103,454,500		$	569,100,000
Weighted-average common units outstanding	74,523,935			298,739,382			62,788,634			68,461,157			46,135,229			278,250,489
Net income per common unit	$	(0.24	)	$	(0.30	)	$	1.35		$	1.23		$	2.24		$	2.05

The weighted-average common units outstanding, basic and diluted, are calculated as follows:



	Year Ended December 31, 2015		Year Ended December 31, 2014		Year Ended December 31, 2013
	Basic	Diluted	Basic	Diluted	Basic	Diluted
The Carlyle Group L.P. weighted-average common units outstanding	74,523,935	74,523,935	62,788,634	62,788,634	46,135,229	46,135,229
Unvested deferred restricted common units	—	—	—	5,258,516	—	4,057,793
Contingently issuable Carlyle Holdings partnership units and common units	—	—	—	414,007	—	465,909
Weighted-average vested Carlyle Holdings partnership units	—	216,943,053	—	—	—	211,225,760
Unvested Carlyle Holdings partnership units	—	7,272,394	—	—	—	16,365,798
Weighted-average common units outstanding	74,523,935	298,739,382	62,788,634	68,461,157	46,135,229	278,250,489

The Carlyle Group L.P. weighted-average common units outstanding includes vested deferred restricted common units and common units associated with acquisitions that have been earned for which issuance of the related common units is deferred until future periods.

The Partnership applies the treasury stock method to determine the dilutive weighted-average common units represented by the unvested deferred restricted common units. Also included in the determination of dilutive weighted-average common units are contingently issuable Carlyle Holdings partnership units and common units associated with the Claren Road, Carlyle Commodity Management, Metropolitan and DGAM acquisitions. For purposes of determining the dilutive weighted-average common units, it is assumed that December 31, 2015, 2014 and 2013 represent the end of the contingency period, the “if-converted” method is applied to any Carlyle Holdings partnership units issuable therefrom, and the treasury stock method is applied.

The Partnership applies the “if-converted” method to the vested Carlyle Holdings partnership units to determine the dilutive weighted-average common units outstanding. The Partnership applies the treasury stock method to the unvested Carlyle Holdings partnership units and the “if-converted” method on the resulting number of additional Carlyle Holdings partnership units to determine the dilutive weighted-average common units represented by the unvested Carlyle Holdings partnership units.

In computing the dilutive effect that the exchange of Carlyle Holdings partnership units would have on earnings per common unit, the Partnership considered that net income available to holders of common units would increase due to the elimination of non-controlling interests in Carlyle Holdings (including any tax impact). Based on these calculations, the 216,943,053 of vested Carlyle Holdings partnership units and 7,272,394 of unvested Carlyle Holdings partnership units for the year ended December 31, 2015 were dilutive. As a result, the net loss of non-controlling interests in Carlyle Holdings associated with this assumed exchange of $69.3 million for the year ended December 31, 2015 has been included in net income (loss) attributable to The Carlyle Group L.P. for purposes of the dilutive earnings per common unit calculation. However, for the year ended December 31, 2015, 3,978,436 of unvested deferred restricted common units were antidilutive, and therefore have been excluded.

For the year ended December 31, 2014, the 229,187,953 of vested and unvested Carlyle Holdings partnership units were antidilutive, and therefore have been excluded.

For the year ended December 31, 2013, the 211,225,760 and 16,365,798 of vested and unvested Carlyle Holdings partnership units were dilutive. As a result, the net income of non-controlling interests in Carlyle Holdings associated with this assumed exchange of $465.9 million for the year ended December 31, 2013 has been included in net income attributable to The Carlyle Group L.P. for purposes of the dilutive earnings per common unit calculation.

On August 1, 2013, as part of acquiring the remaining 40% equity interests in AlpInvest, the Partnership issued 914,087 common units that are subject to vesting conditions. As of December 31, 2015, 766,991 common units remain unvested. The common units participate immediately in any Partnership distributions. Under ASC 260, these common units are considered participating securities and are required to be included in the computation of earnings per common unit pursuant to the two-class method.