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Net Income per Unit
 12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Net Income per Unit
Net Income per Unit
Net income per unit applicable to limited partners is computed by dividing limited partners’ interest in net income by the weighted‑average number of outstanding common units. Our net income is allocated to limited partners in accordance with their respective partnership percentages, after giving effect to any priority income allocations for incentive distributions and distributions on employee unit awards. Earnings in excess of distributions are allocated to limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit.
In addition to the common units, we identify the IDRs as participating securities and use the two-class method when calculating net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Diluted net income per unit includes the effects of potentially dilutive units on our common units, consisting of unvested phantom units.
A reconciliation of the numerators and denominators of the basic and diluted per unit computations is as follows:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(in millions, except units and per unit amounts)
Income from continuing operations
$
313

 
$
58

 
$
326

Less:
 
 
 
 
 
Series A Preferred units
—

 
2

 
23

Incentive distribution rights
72

 
70

 
85

Distributions on nonvested phantom unit awards
6

 
6

 
6

Limited partners’ interest in net income (loss) from continuing operations
$
235

 
$
(20
)
 
$
212

Loss from discontinued operations, net of taxes
$
—

 
$
(265
)
 
$
(177
)
Weighted average limited partner units outstanding:
 

 
 

 
 

Common - basic
82,755,520

 
84,299,893

 
99,270,120

Common - equivalents
796,442

 
520,677

 
458,234

Common - diluted
83,551,962

 
84,820,570

 
99,728,354

Income (loss) from continuing operations per limited partner unit:
 

 
 

 
 

Common - basic
$
2.84

 
$
(0.25
)
 
$
2.13

Common - diluted
$
2.82

 
$
(0.25
)
 
$
2.12

Loss from discontinued operations per limited partner unit:
 
 
 
 
 
Common - basic
$
—

 
$
(3.14
)
 
$
(1.78
)
Common - diluted
$
—

 
$
(3.14
)
 
$
(1.78
)