Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2015

Basic earnings per share ("EPS") is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. In arriving at net income attributable to common stockholders, preferred stock dividends, if any, are deducted. Diluted EPS reflects the potential dilution that could occur if share equivalents such as Operating Partnership units, employee stock options, restricted share units ("RSUs"), restricted shares, deferred incentive share units and profits interest units ("LTIP units") were exercised or converted into common stock that then shared in the earnings of the Company.

The computation of diluted EPS is as follows (in thousands, except per share data):



	Three Months Ended June 30,					Six Months Ended June 30,
	2015		2014			2015		2014
Numerator:
Basic net income (loss) attributable to common stockholders	$	14,132	$	(9,845	)	$	21,407	$	1,000
Effect of net income (loss) attributable to noncontrolling interests - unit holders	607		(571		)	955		(7		)
Diluted net income (loss) attributable to common stockholders	$	14,739	$	(10,416	)	$	22,362	$	993
Denominator:
Basic weighted average shares outstanding	111,543		99,092			111,381		98,219
Effect of Operating Partnership units	4,833		—			4,973		5,200
Effect of RSUs	198		—			194		138
Effect of restricted shares	5		—			5		13
Effect of deferred incentive share units	4		—			5		10
Effect of LTIP units	83		—			80		39
Diluted adjusted weighted average shares outstanding	116,666		99,092			116,638		103,619

Basic and diluted net income (loss) per share attributable to Parkway Properties, Inc.	$	0.13	$	(0.10	)	$	0.19	$	0.01

The computation of diluted EPS for the three and six months ended June 30, 2015, and six months ended June 30, 2014, does not include the effect of employee stock options as their inclusion would have been anti-dilutive. The computation of diluted EPS for the three months ended June 30, 2014 does not include the effect of Operating Partnership units, employee stock options, RSUs, restricted shares, deferred incentive share units and LTIP units, as their inclusion would have been anti-dilutive. Terms and conditions of these awards are described in "Note 11 – Share-Based and Long-Term Compensation Plans."