Net Income per Unit

3 Months Ended

Mar. 31, 2014

Net Income per Unit [Abstract]

Net Income per Unit

4. 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 March 31,
	2014		2013
	(in thousands, except per unit amounts)
Net income – basic	$	36,159	$	38,231
Additional allocation of equity in net income attributable to AllianceBernstein resulting from assumed dilutive effect of compensatory options		296		243
Net income – diluted	$	36,455	$	38,474
Weighted average units outstanding – basic		96,114		100,297
Dilutive effect of compensatory options		1,077		937
Weighted average units outstanding – diluted		97,191		101,234
Basic net income per unit	$	0.38	$	0.38
Diluted net income per unit	$	0.38	$	0.38

As of March 31, 2014 and 2013, we excluded 2,828,033 and 3,161,304 options, respectively, from the diluted net income per unit computation due to their anti-dilutive effect. Weighted average units outstanding do not include Holding’s proportional share (37.5% during the first quarter of 2013) of the unallocated Holding Units then held by AllianceBernstein in its consolidated rabbi trust.

As discussed in Note 3, on July 1, 2013, management retired all unallocated Holding Units in AllianceBernstein’s consolidated rabbi trust, and, since that time, has continued to retire units as AllianceBernstein has purchased Holding Units on the open market or from employees to allow them to fulfill statutory tax withholding requirements at the time of distribution of long-term incentive compensation awards.