Net Income Per Common Limited Partner Unit

6 Months Ended

Jun. 30, 2020

Net Income Per Common Limited Partner Unit

Net Income Per Common Limited Partner Unit

Note 3.    Net Income Per Common 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 and to the General Partner’s general partner interest.

Common units outstanding as reported in the accompanying consolidated financial statements at June 30, 2020 and December 31, 2019 excludes 154,741 and 128,170 common units, respectively, held on behalf of the Partnership pursuant to its repurchase program (see Note 13). These units are not deemed outstanding for purposes of calculating net income per common limited partner unit (basic and diluted). For all periods presented below, the Series A Preferred Units (as defined in Note 14) are not potentially dilutive securities based on the nature of the conversion feature.

The following table provides a reconciliation of net income and the assumed allocation of net income (loss) to the common limited partners (after deducting amounts allocated to Series A preferred unitholders) for purposes of computing net income per common limited partner unit for the periods presented (in thousands, except per unit data):

	Three Months Ended June 30, 2020								Three Months Ended June 30, 2019
			Common		General						Common		General
			Limited		Partner						Limited		Partner
Numerator:	Total		Partners		Interest		IDRs		Total		Partners		Interest		IDRs
Net income attributable to Global Partners LP	$	76,262	$	75,751	$	511	$	—	$	14,489	$	14,123	$	366	$	—
Declared distribution	$	15,701	$	15,595	$	106	$	—	$	17,895	$	17,508	$	118	$	269
Assumed allocation of undistributed net (income) loss		60,561		60,156		405		—		(3,406)		(3,385)		(21)		—
Assumed allocation of net income	$	76,262	$	75,751	$	511	$	—	$	14,489	$	14,123	$	97	$	269
Less net income attributable to Series A preferred limited partners				1,682								1,682
Net income attributable to common limited partners			$	74,069							$	12,441
Denominator:
Basic weighted average common units outstanding				33,869								33,755
Dilutive effect of phantom units				335								531
Diluted weighted average common units outstanding				34,204								34,286
Basic net income per common limited partner unit			$	2.19							$	0.37
Diluted net income per common limited partner unit			$	2.17							$	0.36

	Six Months Ended June 30, 2020								Six Months Ended June 30, 2019
			Common		General						Common		General
			Limited		Partner						Limited		Partner
Numerator:	Total		Partners		Interest		IDRs		Total		Partners		Interest		IDRs
Net income attributable to Global Partners LP	$	79,538	$	79,005	$	533	$	—	$	21,615	$	20,945	$	670	$	—
Declared distribution	$	29,177	$	28,980	$	197	$	—	$	35,606	$	34,846	$	235	$	525
Assumed allocation of undistributed net income (loss)		50,361		50,025		336		—		(13,991)		(13,901)		(90)		—
Assumed allocation of net income	$	79,538	$	79,005	$	533	$	—	$	21,615	$	20,945	$	145	$	525
Less net income attributable to Series A preferred limited partners				3,364								3,364
Net income attributable to common limited partners			$	75,641							$	17,581
Denominator:
Basic weighted average common units outstanding				33,869								33,754
Dilutive effect of phantom units				379								505
Diluted weighted average common units outstanding				34,248								34,259
Basic net income per common limited partner unit			$	2.23							$	0.52
Diluted net income per common limited partner unit			$	2.21							$	0.51

The board of directors of the General Partner declared the following quarterly cash distributions on its common units:

	Per Unit Cash		Distribution Declared for the
Cash Distribution Declaration Date	Distribution Declared		Quarterly Period Ended
April 27, 2020	$	0.39375	March 31, 2020
July 31, 2020	$	0.45875	June 30, 2020

The board of directors of the General Partner declared the following quarterly cash distributions on its Series A Preferred Units:

	Per Unit Cash		Distribution Declared for the
Cash Distribution Declaration Date	Distribution Declared		Quarterly Period Covering
April 16, 2020	$	0.609375	February 15, 2020 - May 14, 2020
July 20, 2020	$	0.609375	May 15, 2020 - August 14, 2020

See Note 14, “Partners’ Equity and Cash Distributions” for further information.