Net (Loss) Income Per Limited Partner Unit

3 Months Ended

Mar. 31, 2017

Net (Loss) Income Per Limited Partner Unit

Net (Loss) Income Per Limited Partner Unit

Note 2.    Net Income (Loss) 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 or losses 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, 2017 and December 31, 2016 excluded 441,235 and 451,894 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 (loss) per limited partner unit (basic and diluted).

The following table provides a reconciliation of net income (loss) and the assumed allocation of net income (loss) to the limited partners’ interest for purposes of computing net income (loss) per limited partner unit for the three months ended March 31, 2017 and 2016 (in thousands, except per unit data):

	Three Months Ended March 31, 2017								Three Months Ended March 31, 2016
			Limited		General						Limited		General
			Partner		Partner						Partner		Partner
Numerator:	Total		Interest		Interest		IDRs		Total		Interest		Interest		IDRs
Net income (loss) attributable to Global Partners LP	$	22,946	$	22,792	$	154	$	—	$	(7,024)	$	(6,977)	$	(47)	$	—
Declared distribution	$	15,829	$	15,723	$	106	$	—	$	15,829	$	15,723	$	106	$	—
Assumed allocation of undistributed net income (loss)		7,117		7,069		48		—		(22,853)		(22,700)		(153)		—
Assumed allocation of net income (loss)	$	22,946	$	22,792	$	154	$	—	$	(7,024)	$	(6,977)	$	(47)	$	—
Denominator:
Basic weighted average limited partner units outstanding				33,554								33,517
Dilutive effect of phantom units				56								—
Diluted weighted average limited partner units outstanding				33,610								33,517
Basic net income (loss) per limited partner unit			$	0.68							$	(0.21)
Diluted net income (loss) per limited partner unit (1)			$	0.68							$	(0.21)

(1) Basic units were used to calculate diluted net loss per limited partner unit for the three months ended March 31, 2016, as using the effects of phantom units would have an anti-dilutive effect on net loss per limited partner unit.

The board of directors of the General Partner declared the following quarterly cash distribution:

	Per Unit Cash		Distribution Declared for the
Cash Distribution Declaration Date	Distribution Declared		Quarterly Period Ended
April 28, 2017	$	0.4625	March 31, 2017

See Note 13, “Partners’ Equity and Cash Distributions” for further information.