Net Income Per Limited Partner Unit (Tables)

9 Months Ended

Sep. 30, 2015

Net Income Per Limited Partner Unit

Computation of basic and diluted net income per limited partner unit

The following table sets forth the computation of basic and diluted net income per limited partner unit for the periods indicated (in millions, except per unit data):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Basic Net Income per Limited Partner Unit
Net income attributable to PAA	$	249	$	323	$	657	$	994
Less: General partner’s incentive distribution (1)		(148)		(124)		(437)		(351)
Less: General partner 2% ownership (1)		(2)		(4)		(5)		(13)
Net income attributable to limited partners		99		195		215		630
Less: Undistributed earnings allocated and distributions to participating securities (1)		(1)		(1)		(4)		(5)
Net income attributable to limited partners in accordance with application of the two-class method for MLPs	$	98	$	194	$	211	$	625
Basic weighted average limited partner units outstanding		398		370		393		365
Basic net income per limited partner unit	$	0.25	$	0.52	$	0.54	$	1.71
Diluted Net Income per Limited Partner Unit
Net income attributable to PAA	$	249	$	323	$	657	$	994
Less: General partner’s incentive distribution (1)		(148)		(124)		(437)		(351)
Less: General partner 2% ownership (1)		(2)		(4)		(5)		(13)
Net income attributable to limited partners		99		195		215		630
Less: Undistributed earnings allocated and distributions to participating securities (1)		(1)		(1)		(4)		(5)
Net income attributable to limited partners in accordance with application of the two-class method for MLPs	$	98	$	194	$	211	$	625
Basic weighted average limited partner units outstanding		398		370		393		365
Effect of dilutive securities: Weighted average LTIP units		1		1		2		2
Diluted weighted average limited partner units outstanding		399		371		395		367
Diluted net income per limited partner unit	$	0.24	$	0.52	$	0.53	$	1.70

⁽¹⁾ We calculate net income attributable to limited partners based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners and participating securities in accordance with the contractual terms of our partnership agreement and as further prescribed under the two-class method.