Net Income per Unit

9 Months Ended

Sep. 30, 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 September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
	(in thousands, except per unit amounts)
Net income – basic	$	44,134	$	29,523	$	123,147	$	108,030
Additional allocation of equity in net income attributable to AllianceBernstein resulting from assumed dilutive effect of compensatory options		409		183		1,085		771
Net income – diluted	$	44,543	$	29,706	$	124,232	$	108,801
Weighted average units outstanding – basic		97,070		92,258		96,549		97,866
Dilutive effect of compensatory options		1,249		756		1,174		994
Weighted average units outstanding – diluted		98,319		93,014		97,723		98,860
Basic net income per unit	$	0.45	$	0.32	$	1.28	$	1.10
Diluted net income per unit	$	0.45	$	0.32	$	1.27	$	1.10

For the three months and nine months ended September 30, 2014, we excluded 2,774,117 and 2,806,033 options, respectively, from the diluted net income per unit computation due to their anti-dilutive effect. For the three months and nine months ended September 30, 2013, we excluded 3,045,173 and 2,974,935 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 (34.5% during the third quarter of 2013 and 36.7% during the first nine months 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, if such units are not required to fund new employee awards in the near future.