XML 24 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Net Income Per Unit (Notes)
 6 Months Ended
Jun. 30, 2014
Net Income (Loss), Per Outstanding Limited Partnership and General Partnership Unit, Basic and Diluted, Net of Tax [Abstract]  
Net Income Per Unit
NET INCOME PER UNIT

We use the two-class method when calculating the net income per unit applicable to limited partners, because we have more than one participating security. At June 30, 2014, our participating securities consist of common units, general partner units and IDRs. Net income earned by the Partnership is allocated between the limited (both common and subordinated) and general partners in accordance with our partnership agreement. We base our calculation of net income per unit on the weighted average number of common and subordinated limited partner units outstanding during the period.

Diluted net income per unit includes the effects of potentially dilutive units on our common units, which consist of unvested service and performance phantom units. Basic and diluted net income per unit applicable to subordinated limited partners are the same, as there are no potentially dilutive subordinated units outstanding. Distributions less than or greater than earnings are allocated in accordance with our partnership agreement.

Following payment of the cash distribution for the first quarter of 2014 and the attainment of necessary approvals, the requirements for the conversion of all subordinated units were satisfied under the partnership agreement. As a result, effective May 16, 2014, the 15,254,890 subordinated units were converted into common units on a one-for-one basis and thereafter participate on terms equal with all other common units in distributions of available cash. The Partnership’s net income was allocated to the general partner and the limited partners, including the holders of the subordinated units through May 15, 2014, in accordance with our partnership agreement. The conversion did not impact the amount of the cash distribution paid or the total number of the Partnership’s outstanding units representing limited partner interests.

The calculation of net income per unit is as follows (in thousands, except unit and per unit amounts):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Net income attributable to partners
$
32,766

 
$
19,173

 
$
77,264

 
$
37,851

General partner’s distributions (including IDRs) (a)
(8,292
)
 
(2,149
)
 
(15,139
)
 
(3,815
)
Limited partners’ distributions on common units
(29,199
)
 
(16,179
)
 
(52,328
)
 
(31,014
)
Limited partners’ distributions on subordinated units (b)
(4,641
)
 
(7,780
)
 
(13,641
)
 
(15,255
)
Distributions greater than earnings
$
(9,366
)
 
$
(6,935
)
 
$
(3,844
)
 
$
(12,233
)
 
 
 
 
 
 
 
 
General partner’s earnings:


 
 
 
 
 
 
Distributions (including IDRs) (a)
$
8,292

 
$
2,149

 
$
15,139

 
$
3,815

Allocation of distributions greater than earnings
(186
)
 
(139
)
 
(77
)
 
(245
)
Total general partner’s earnings
$
8,106

 
$
2,010

 
$
15,062

 
$
3,570

 
 
 
 
 
 
 
 
Limited partners’ earnings on common units:
 
 
 
 
 
 
 
Distributions
$
29,199

 
$
16,179

 
$
52,328

 
$
31,014

Allocation of distributions greater than earnings
(7,908
)
 
(4,543
)
 
(2,980
)
 
(7,930
)
Total limited partners’ earnings on common units
$
21,291

 
$
11,636

 
$
49,348

 
$
23,084

 
 
 
 
 
 
 
 
Limited partners’ earnings on subordinated units (b):
 
 
 
 
 
 
 
Distributions
$
4,641

 
$
7,780

 
$
13,641

 
$
15,255

Allocation of distributions greater than earnings
(1,272
)
 
(2,253
)
 
(787
)
 
(4,058
)
Total limited partners’ earnings on subordinated units
$
3,369

 
$
5,527

 
$
12,854

 
$
11,197

 
 
 
 
 
 
 
 
Weighted average limited partner units outstanding:
 
 
 
 
 
 
 
Common units - basic
46,911,533

 
30,752,989

 
43,070,111

 
29,812,337

Common unit equivalents
100,891

 
110,149

 
99,187

 
91,443

Common units - diluted
47,012,424

 
30,863,138

 
43,169,298

 
29,903,780

 
 
 
 
 
 
 
 
Subordinated units - basic and diluted (b)
7,543,627

 
15,254,890

 
11,377,957

 
15,254,890

 
 
 
 
 
 
 
 
Net income per limited partner unit (c):
 
 
 
 
 
 
 
Common - basic
$
0.45

 
$
0.38

 
$
1.15

 
$
0.77

Common - diluted
$
0.45

 
$
0.38

 
$
1.14

 
$
0.77

Subordinated - basic and diluted
$
0.45

 
$
0.36

 
$
1.13

 
$
0.73

____________ 
(a)
General partner’s distributions (including IDRs) consist of an approximate 2% general partner interest and IDRs, which entitle the general partner to receive increasing percentages, up to 50%, of quarterly distributions in excess of $0.388125 per unit per quarter. See Note K of our Annual Report on Form 10-K for the year ended December 31, 2013 for further discussion related to IDRs.
(b)
On May 16, 2014, the 15,254,890 subordinated units were converted into common units on a one-for-one basis and thereafter participate on terms equal with all other common units in distributions of available cash. Distributions and the Partnership’s net income were allocated to the subordinated units through May 15, 2014.
(c)
We base our calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. Therefore, as a result of the public offering of common units in January 2013, and the conversion of the subordinated units to common units in May 2014, net income per common and subordinated limited partner units may not agree for the periods presented.