Net Income per Unit

Basic net income per unit is derived by dividing net income by the basic weighted average number of units outstanding for each period. Diluted net income per unit is derived by adjusting net income for the assumed dilutive effect of compensatory options (“Net income – diluted”) and dividing by the diluted weighted average number of units outstanding for each period.



		Three Months Ended September 30,				Nine Months Ended September 30,
		2017		2016		2017		2016
	(in thousands, except per unit amounts)

Net income – basic		$	43,178	$	50,258	$	128,829	$	143,922
Additional allocation of equity in net income attributable to AB resulting from assumed dilutive effect of compensatory options		136		221		450		581
Net income – diluted		$	43,314	$	50,479	$	129,279	$	144,503

Weighted average units outstanding – basic		93,374		95,890		95,218		97,643
Dilutive effect of compensatory options		400		590		455		554
Weighted average units outstanding – diluted		93,774		96,480		95,673		98,197

Basic net income per unit		$	0.46	$	0.52	$	1.35	$	1.47
Diluted net income per unit		$	0.46	$	0.52	$	1.35	$	1.47

For the three and nine months ended September 30, 2017, we excluded 2,427,527 options from the diluted net income computation due to their anti-dilutive effect. For the three and nine months ended September 30, 2016, we excluded 2,873,106 options from the diluted net income computation due to their anti-dilutive effect.