Net Income Per Unit

9 Months Ended

Sep. 30, 2011

3.	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,
	2011		2010		2011		2010
	(in thousands, except per unit amounts)

Net income – basic	$	27,003	$	12,215	$	106,195	$	91,233
Additional allocation of equity in net income attributable to AllianceBernstein resulting from assumed dilutive effect of compensatory options		-		169		240		1,228
Net income – diluted	$	27,003	$	12,384	$	106,435	$	92,461

Weighted average units outstanding – basic		103,156		100,893		103,915		101,236
Dilutive effect of compensatory options		-		1,444		316		1,776
Weighted average units outstanding – diluted		103,156		102,337		104,231		103,012

Basic net income per unit	$	0.26	$	0.12	$	1.02	$	0.90
Diluted net income per unit	$	0.26	$	0.12	$	1.02	$	0.90

For the three months and nine months ended September 30, 2011, we excluded 9,590,691 and 4,307,713, respectively, out-of-the-money options (i.e., options with an exercise price greater than the weighted average closing price of a unit for the relevant period), from the diluted net income per unit computation due to their anti-dilutive effect. For the three months and nine months ended September 30, 2010, we excluded 5,279,772 and 4,918,021, respectively, out-of-the-money options from the diluted net income per unit computation due to their anti-dilutive effect.