7. NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO CLASS A COMMON SHAREHOLDERS

The calculations of basic and diluted net income (loss) per share attributable to holders of shares of Class A common stock for the three and nine months ended September 30, 2016 and 2015 are presented below.


	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	2016			2015			2016			2015
Numerator:
Net income (loss) attributable to holders of shares of Class A common stock—basic	$	9,489		$	10,090		$	23,352		$	22,557
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units			(a)			(a)			(a)			(a)
Net income (loss) attributable to holders of shares of Class A common stock—diluted	$	9,489		$	10,090		$	23,352		$	22,557
Denominator:
Weighted average shares of Class A common stock outstanding—basic		20,926,745			20,184,835			20,807,189			19,919,675
Add (deduct) dilutive effect of:
Noncontrolling interests related to Class A partnership units			(a)			(a)			(a)			(a)
Weighted average number of incremental shares issuable from unvested restricted stock, RSUs and stock options, as calculated using the treasury stock method		3,374,318	(b)		1,281,186	(b)		2,709,050	(b)		1,185,848	(b)
Weighted average shares of Class A common stock outstanding—diluted		24,301,063			21,466,021			23,516,239			21,105,523
Net income (loss) per share attributable to holders of shares of Class A common stock
Basic	$	0.45		$	0.50		$	1.12		$	1.13
Diluted	$	0.39		$	0.47		$	0.99		$	1.07

We have not included the impact of Class B common stock because these shares are entitled to an insignificant amount of economic participation.

(a)Class A partnership units may be exchanged for Moelis & Company Class A common stock on a one‑for‑one basis, subject to applicable lock‑up, vesting and transfer restrictions. If all Class A partnership units were to be exchanged for Class A common stock, fully diluted Class A common stock outstanding would be 58,000,602 and 55,398,692 for the three months ended September 30, 2016 and 2015, respectively, and 57,335,334 and 55,303,354 for the nine months ended September 30, 2016 and 2015, respectively. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) available to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests in consolidated entities associated with the Group LP Class A partnership units (including any tax impact). For the three and nine months ended September 30, 2016 and 2015, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive.

(b)During the three and nine months ended September 30, 2016 and 2015, certain shares of Moelis & Company’s Class A common stock assumed to be issued pursuant to certain RSUs as calculated using the treasury stock method were antidilutive and therefore have been excluded from the calculation of diluted net income (loss) per share attributable to Moelis & Company. During the three months ended September 30, 2016 and 2015, the additional weighted average amount of RSUs that would have been included in this calculation if the effect were dilutive would have been 2,552 and 15,397 units, respectively, and 1,211 and 7,945 units for the nine months ended September 30, 2016 and 2015, respectively. Additionally, during the three months ended September 30, 2016 and 2015, the additional weighted average amount of options that would have been included in this calculation if the effect were dilutive would have been 973,859 and 1,049,977, respectively, and 1,048,196 and 0 weighted average options for the nine months ended September 30, 2016 and 2015, respectively.