Net Income Per Limited Partner Unit

3 Months Ended

Mar. 31, 2015

Net Income (Loss) Per Limited Partner Unit

Net Income Per Limited Partner Unit

Note 3.Net Income Per Limited Partner Unit

Under the Partnership’s partnership agreement, for any quarterly period, the incentive distribution rights (“IDRs”) participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in the Partnership’s undistributed net income or losses.  Accordingly, the Partnership’s undistributed net income is assumed to be allocated to the common unitholders, or limited partners’ interest, and to the General Partner’s general partner interest.

Common units outstanding as reported in the accompanying consolidated financial statements at March 31, 2015 and December 31, 2014 excluded 453,219 and 390,602 common units, respectively, held on behalf of the Partnership pursuant to its repurchase program (see Note 12).  These units are not deemed outstanding for purposes of calculating net income per limited partner unit (basic and diluted).

The following table provides a reconciliation of net income and the assumed allocation of net income to the limited partners’ interest for purposes of computing net income per limited partner unit for the three months ended March 31, 2015 and 2014 (in thousands, except per unit data):

	Three Months March 31, 2015									Three Months Ended March 31, 2014
Numerator:	Total		Limited Partner Interest		General Partner Interest			IDRs		Total		Limited Partner Interest		General Partner Interest		IDRs
Net income attributable to Global Partners LP (1)	$	30,415	$	28,236	$	2,179		$	—	$	57,010	$	55,502	$	1,508	$	—
Declared distribution	$	23,260	$	21,076	$	157		$	2,027	$	18,323	$	17,145	$	143	$	1,035
Assumed allocation of undistributed net income	7,155		7,160		(5		)	—		38,687		38,357		330		—
Assumed allocation of net income	$	30,415	$	28,236	$	152		$	2,027	$	57,010	$	55,502	$	473	$	1,035
Denominator:
Basic weighted average limited partner units outstanding			30,599									27,261
Dilutive effect of phantom units			113									35
Diluted weighted average limited partner units outstanding			30,712									27,296
Basic net income per limited partner unit			$	0.92								$	2.04
Diluted net income per limited partner unit			$	0.92								$	2.03

(1)As a result of the December 10, 2014 issuance of 3,565,000 common units in connection with the Partnership’s public offering, the general partner interest was reduced to 0.74% for the three months ended March 31, 2015 from 0.83% for the three months ended March 31, 2014.

During 2015, the board of directors of the General Partner declared the following quarterly cash distribution:

Cash Distribution	Per Unit Cash	Distribution Declared for the
Declaration Date	Distribution Declared	Quarterly Period Ended
April 22, 2015	$0.68 (1)	March 31, 2015

(1)This declared cash distribution resulted in an incentive distribution to the General Partner, as the holder of the IDRs, and enable the Partnership to exceed its third target level distribution with respect to such IDRs.

See Note 8, “Cash Distributions” for further information.