Net Income Per Common Share

3 Months Ended

Mar. 31, 2016

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 March 31,
	2016		2015
Numerator:
Basic net income attributable to common stockholders	$	61,393	$	7,275
Effect of net income attributable to noncontrolling interests - unit holders	2,655		348
Diluted net income attributable to common stockholders	$	64,048	$	7,623
Denominator:
Basic weighted average shares outstanding	111,658		111,216
Effect of Operating Partnership units	4,833		5,114
Effect of RSUs	196		189
Effect of restricted shares	—		6
Effect of deferred incentive share units	—		6
Diluted adjusted weighted average shares outstanding	116,687		116,531

Basic net income per common share attributable to Parkway Properties, Inc.	$	0.55	$	0.07
Diluted net income per common share attributable to Parkway Properties, Inc.	$	0.55	$	0.07

The computation of diluted EPS for the three months ended March 31, 2016 and 2015 does not include the effect of employee stock options and LTIP units, as their inclusion would have been anti-dilutive. Terms and conditions of these awards are described in "Note 9 — Share-Based and Long-Term Compensation Plans."