
Note 7 —	Net Income (Loss) Per Unit

Net income (loss) per unit is calculated in accordance with ASC 260, “Earnings Per Share,” which specifies the use of the two-class method of computing earnings per unit when participating or multiple classes of securities exist. Under this method, undistributed earnings for a period are allocated based on the contractual rights of each security to share in those earnings as if all of the earnings for the period had been distributed.

Basic net income (loss) per unit excludes dilution and is computed by dividing net income (loss) attributable to each respective class of units by the weighted average number of units outstanding for each respective class during the period. Dilutive net income (loss) per unit reflects potential dilution that could occur if convertible securities were converted into common units or contracts to issue common units were exercised except when the assumed conversion or exercise would have an anti-dilutive effect on net income (loss) per unit. Dilutive net income (loss) per unit is computed by dividing net income (loss) attributable to each respective class of units by the weighted average number of units outstanding for each respective class of units during the period increased by the number of additional units that would have been outstanding if the dilutive potential units had been issued.

Because we had a net loss to common units for the three and six months ended June 30, 2011 and 2010, the weighted average units outstanding are the same for basic and diluted net loss per common unit. The following potentially dilutive common equity was excluded from the dilutive net loss per common unit calculation because including these equity securities would have been anti-dilutive:


					Six Months
	Three Months Ended				Ended
	June 30,				June 30,
	2011		2010		2011		2010
			(In thousands)

Employee options		820		1,214		820		1,214
Unit appreciation rights		365		345		365		345
Restricted units		59		104		59		104
Phantom units		988		920		988		920
Contingent incentive plan unit awards		39		37		56		49
Series A preferred units		10,996		—		11,121		—