Net Income (Loss) Per Common Share

9 Months Ended

Sep. 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 September 30,					Nine Months Ended September 30,
	2015		2014			2015		2014
Numerator:
Basic net income (loss) attributable to common stockholders	$	37,251	$	(485	)	$	58,658	$	515
Effect of net income (loss) attributable to noncontrolling interests - unit holders	1,617		—			2,572		(58		)
Diluted net income (loss) attributable to common stockholders	$	38,868	$	(485	)	$	61,230	$	457
Denominator:
Basic weighted average shares outstanding	111,583		100,016			111,449		98,825
Effect of Operating Partnership units	4,833		—			4,926		5,200
Effect of RSUs	216		—			201		168
Effect of restricted shares	5		—			5		13
Effect of deferred incentive share units	1		—			3		11
Effect of LTIP units	85		—			83		—
Diluted adjusted weighted average shares outstanding	116,723		100,016			116,667		104,217

Basic net income (loss) per share attributable to Parkway Properties, Inc.	$	0.33	$	—		$	0.53	$	0.01
Diluted net income (loss) per share attributable to Parkway Properties, Inc.	$	0.33	$	—		$	0.52	$	—

The computation of diluted EPS for the three and nine months ended September 30, 2015 and 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 September 30, 2014 does not include the effect of net loss attributable to unit holders in the numerator and Operating Partnership units, RSUs, restricted shares, deferred incentive share units and LTIP units in the denominator, as their inclusion would have been anti-dilutive. The computation of diluted EPS for the nine months ended September 30, 2014 does not include the effect of 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."