EARNINGS PER LIMITED PARTNER UNIT

12 Months Ended

Dec. 31, 2022

16.EARNINGS PER LIMITED PARTNER UNIT

We utilize the two-class method in calculating basic and diluted earnings per limited partner unit ("EPU"). Net income attributable to ARLP is allocated to limited partners and participating securities under deferred compensation plans, which include rights to nonforfeitable distributions or distribution equivalents. Net losses attributable to ARLP are allocated to limited partners but not to participating securities. Our participating securities are outstanding restricted unit awards under our LTIP and phantom units in notional accounts under our SERP and the Directors' Deferred Compensation Plan.

The following is a reconciliation of net income (loss) attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU.


	Year Ended December 31,
	2022		2021		2020

	(in thousands, except per unit data)

Net income (loss) attributable to ARLP	$	577,190	$	178,157	$	(129,220)

Less:
Distributions to participating securities		(8,527)		(2,334)		—
Undistributed earnings attributable to participating securities		(10,576)		(2,403)		—

Net income (loss) attributable to ARLP available to limited partners	$	558,087	$	173,420	$	(129,220)

Weighted-average limited partner units outstanding – basic and diluted		127,195		127,195		127,165

Earnings per limited partner unit - basic and diluted (1)	$	4.39	$	1.36	$	(1.02)

(1)

Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. For the years ended December 31, 2022, 2021 and 2020, the combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 3,540,385, 1,967,672 and 773,664, respectively, were considered anti-dilutive under the treasury stock method.