EARNINGS PER UNIT

6 Months Ended

Jun. 30, 2017

The computation of net income per Class A unit is set forth below:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Net income per Class A unit (basic and diluted):	(in thousands, except per unit amounts)
Net income per Class A unit (basic and diluted):
Net income attributable to Oaktree Capital Group, LLC	$	117,324	$	49,047	$	172,239	$	77,125
Weighted average number of Class A units outstanding (basic and diluted)	64,193		62,617		63,611		62,256
Basic and diluted net income per Class A unit	$	1.83	$	0.78	$	2.71	$	1.24

OCGH units may be exchanged on a one-for-one basis into Class A units, subject to certain restrictions. As of June 30, 2017, there were 92,043,490 OCGH units outstanding, which are vested or will vest through February 15, 2027, that ultimately may be exchanged into 92,043,490 Class A units. The exchange of these units would proportionally increase the Company’s interest in the Oaktree Operating Group. However, as the restrictions set forth in the exchange agreement were in place at the end of each respective reporting period, those units were not included in the computation of diluted earnings per unit for the three and six months ended June 30, 2017 and 2016.

A deferred equity unit represents a special unit award that, when vested, will be settled with an unvested OCGH unit on a one-for-one basis. The number of deferred equity units that will vest is based on the achievement of certain performance targets through June 2021. Once a performance target has been met, the applicable number of OCGH units will be issued and begin to vest over 4.0 years. The holder of a deferred equity unit is not entitled to any distributions until the issuance of an OCGH unit in settlement of a deferred equity unit. As of June 30, 2017, no OCGH units were considered issuable under the terms of the arrangement; consequently, no contingently issuable units were included in the computation of diluted earnings per unit for the three and six months ended June 30, 2017. Please see note 13 for more information.

In connection with the 2014 Highstar acquisition, the Company has a contingent consideration liability that is payable in a combination of cash and fully-vested OCGH units. The amount of contingent consideration, if any, is based on the achievement of certain performance targets over a period of up to seven years from the acquisition date. As of June 30, 2017, no OCGH units were considered issuable under the terms of the contingent consideration arrangement; consequently, no contingently issuable units were included in the computation of diluted earnings per unit for the three and six months ended June 30, 2017 and 2016. Please see note 15 for more information.