Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 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, time-vesting and performance-vesting 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,
	2016			2015		2016		2015
Numerator:
Basic net income (loss) attributable to common stockholders	$	(2,159	)	$	14,132	$	59,234	$	21,407
Effect of net income (loss) attributable to noncontrolling interests - unit holders	(89		)	607		2,566		955
Diluted net income (loss) attributable to common stockholders	$	(2,248	)	$	14,739	$	61,800	$	22,362
Denominator:
Basic weighted average shares outstanding	111,725			111,543		111,692		111,381
Effect of Operating Partnership units	—			4,833		4,830		4,973
Effect of time-vesting RSUs	—			198		230		194
Effect of performance-vesting RSUs	—			—		90		—
Effect of restricted shares	—			5		—		5
Effect of deferred incentive share units	—			4		—		5
Effect of LTIP units	—			83		115		80
Diluted adjusted weighted average shares outstanding	111,725			116,666		116,957		116,638

Basic net income (loss) per common share attributable to Parkway Properties, Inc.	$	(0.02	)	$	0.13	$	0.53	$	0.19
Diluted net income (loss) per common share attributable to Parkway Properties, Inc.	$	(0.02	)	$	0.13	$	0.53	$	0.19

The computation of diluted EPS for the three months ended June 30, 2016 does not include the effect of Operating Partnership units, employee stock options, RSUs, restricted shares 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."