Earnings Per Common Unit

Basic and diluted net income (loss) per common unit are calculated as follows:



	Year Ended December 31, 2016					Year Ended December 31, 2015						Year Ended December 31, 2014
	Basic		Diluted			Basic			Diluted			Basic			Diluted
Net income (loss) attributable to The Carlyle Group L.P.	$	6,400,000	$	6,400,000		$	(18,400,000	)	$	(18,400,000	)	$	85,800,000		$	85,800,000
Dilution of earnings due to participating securities with distribution rights	—		—			167,000			(1,743,000		)	(1,284,100		)	(1,303,600		)
Incremental net income (loss) from assumed exchange of Carlyle Holdings partnership units	—		(32,100,000		)	—			(69,300,000		)	—			—
Net income (loss) attributable to common units	$	6,400,000	$	(25,700,000	)	$	(18,233,000	)	$	(89,443,000	)	$	84,515,900		$	84,496,400
Weighted-average common units outstanding	82,714,178		308,522,990			74,523,935			298,739,382			62,788,634			68,461,157
Net income (loss) per common unit	$	0.08	$	(0.08	)	$	(0.24	)	$	(0.30	)	$	1.35		$	1.23

The weighted-average common units outstanding, basic and diluted, are calculated as follows:



	Year Ended December 31, 2016		Year Ended December 31, 2015		Year Ended December 31, 2014
	Basic	Diluted	Basic	Diluted	Basic	Diluted
The Carlyle Group L.P. weighted-average common units outstanding	82,714,178	82,714,178	74,523,935	74,523,935	62,788,634	62,788,634
Unvested deferred restricted common units	—	3,331,282	—	—	—	5,258,516
Contingently issuable Carlyle Holdings partnership units and common units	—	—	—	—	—	414,007
Weighted-average vested Carlyle Holdings partnership units	—	222,183,911	—	216,943,053	—	—
Unvested Carlyle Holdings partnership units	—	293,619	—	7,272,394	—	—
Weighted-average common units outstanding	82,714,178	308,522,990	74,523,935	298,739,382	62,788,634	68,461,157

The Carlyle Group L.P. weighted-average common units outstanding includes vested deferred restricted common units and common units associated with acquisitions that have been earned for which issuance of the related common units is deferred until future periods.

The Partnership applies the treasury stock method to determine the dilutive weighted-average common units represented by the unvested deferred restricted common units. Also included in the determination of dilutive weighted-average common units are contingently issuable Carlyle Holdings partnership units and common units associated with the Partnership's acquisitions. For purposes of determining the dilutive weighted-average common units, it is assumed that December 31, 2016, 2015 and 2014 represent the end of the contingency period.

The Partnership applies the “if-converted” method to the vested Carlyle Holdings partnership units to determine the dilutive weighted-average common units outstanding. The Partnership applies the treasury stock method to the unvested Carlyle Holdings partnership units and the “if-converted” method on the resulting number of additional Carlyle Holdings partnership units to determine the dilutive weighted-average common units represented by the unvested Carlyle Holdings partnership units.

In computing the dilutive effect that the exchange of Carlyle Holdings partnership units would have on earnings per common unit, the Partnership considered that net income available to holders of common units would decrease due to the elimination of non-controlling interests in Carlyle Holdings (including any tax impact). Based on these calculations, the 222,183,911 of vested Carlyle Holdings partnership units and 293,619 of unvested Carlyle Holdings partnership units for the year ended December 31, 2016 were dilutive. As a result, the net loss of non-controlling interests in Carlyle Holdings associated with this assumed exchange of $(32.1) million for the year ended December 31, 2016 has been included in net income (loss) attributable to The Carlyle Group L.P. for purposes of the dilutive earnings per common unit calculation.

For the year ended December 31, 2015, the 216,943,053 of vested Carlyle Holdings partnership units and 7,272,394 of unvested Carlyle Holdings partnership units were dilutive. As a result, the net loss of non-controlling interests in Carlyle Holdings associated with this assumed exchange of $69.3 million for the year ended December 31, 2015 has been included in net income (loss) attributable to The Carlyle Group L.P. for purposes of the dilutive earnings per common unit calculation. However, for the year ended December 31, 2015, 3,978,436 of unvested deferred restricted common units were antidilutive, and therefore have been excluded.

For the year ended December 31, 2014, the 229,187,953 of vested and unvested Carlyle Holdings partnership units were antidilutive, and therefore have been excluded.

On August 1, 2013, as part of acquiring the remaining 40% equity interests in AlpInvest, the Partnership issued 914,087 common units that are subject to vesting conditions. As of December 31, 2016, 38,911 common units remain unvested. The common units participate immediately in any Partnership distributions. Under ASC 260, these common units are considered participating securities and are required to be included in the computation of earnings per common unit pursuant to the two-class method.