Note 8—Partners’ Capital and Distributions

Distributions

The following table details the distributions paid to Class A shareholders during or pertaining to the first nine months of 2014 (in millions, except per share data):

		Distributions to		Distributions per
Date Declared	Distribution Date	Class A Shareholders		Class A Share (2)
October 8, 2014	November 14, 2014 (1)	$	26	$	0.19075
July 8, 2014	August 14, 2014	$	25	$	0.18340
April 7, 2014	May 15, 2014	$	23	$	0.17055
January 9, 2014	February 14, 2014	$	17	$	0.12505

(1) Payable to shareholders of record at the close of business on October 31, 2014, for the period July 1, 2014 through September 30, 2014.

(2) The distribution per Class A share paid on February 14, 2014 was prorated for the partial quarter following the closing of our IPO on October 21, 2013.

Units Outstanding

Exchange Rights. Holders of AAP units and their permitted transferees each have the right to exchange all or a portion of their AAP units for Class A shares at an exchange ratio of one Class A share for each AAP unit exchanged (referred to herein as their “Exchange Right”). This Exchange Right may be exercised only if, simultaneously therewith, an equal number of Class B shares and general partner units are transferred by the exercising party to us. For additional information regarding Exchange Rights, see Note 10 to our Consolidated Financial Statements included in Part IV of our 2013 Annual Report on Form 10-K. During the nine months ended September 30, 2014, certain holders of AAP units and their permitted transferees exercised their Exchange Right, which resulted in the exchange of AAP units, general partner units and our Class B shares for our Class A shares. The following table reflects the impact of such Exchange Right exercises on our Class A and Class B shares outstanding:

	Class B Shares		Class A Shares
Balance at December 31, 2013	472,196,136		133,833,637
Shares (exchanged)/issued in connection with Exchange Right exercises	(2,213,000	)	2,213,000
Balance at September 30, 2014	469,983,136		136,046,637

Consolidated Subsidiaries

Sales of Common Units by Subsidiaries

PAA Continuous Offering Program. In August 2014, PAA entered into an equity distribution agreement with several financial institutions pursuant to which PAA may offer and sell, through sales agents, common units representing limited partner interests in PAA having an aggregate offering price of up to $900 million. During the nine months ended September 30, 2014, PAA issued an aggregate of approximately 11.8 million common units under its continuous offering program, generating proceeds of $655 million, net of offering costs.

Noncontrolling Interests in Subsidiaries

As of September 30, 2014, noncontrolling interests in subsidiaries consisted of (i) a 98% limited partner interest in PAA, (ii) an approximate 78% limited partner interest in AAP that consists of Class A units and AAP Management Units (a profits interest) and (iii) a 25% interest in SLC Pipeline LLC.

Subsidiary Distributions

PAA Distributions. The following table details the distributions to PAA’s partners paid during or pertaining to the first nine months of 2014, net of incentive distribution reductions (in millions, except per unit data):

		Distributions to PAA’s Partners								Distributions
		Limited		AAP						per limited
Date Declared	Distribution Date	Partners		Incentive		2%		Total		partner unit
October 8, 2014	November 14, 2014 (1)	$	245	$	124	$	5	$	374	$	0.6600
July 8, 2014	August 14, 2014	$	238	$	117	$	5	$	360	$	0.6450
April 7, 2014	May 15, 2014	$	229	$	110	$	5	$	344	$	0.6300
January 9, 2014	February 14, 2014	$	221	$	102	$	5	$	328	$	0.6150

(1) Payable to unitholders of record at the close of business on October 31, 2014, for the period July 1, 2014 through September 30, 2014.

During the nine months ended September 30, 2014, distributions of approximately $2 million were paid to noncontrolling interests in SLC Pipeline LLC.

AAP Distributions. The following table details the distributions to AAP’s partners from distributions received from PAA paid during or pertaining to the first nine months of 2014 (in millions):

						Distributions to AAP’s Partners
	Distributions received		Cash					Noncontrolling
Distribution Date	by AAP from PAA		Reserves			Total		Interests		PAGP
November 14, 2014 (1)	$	129	$	(4	)	$	125	$	99	$	26
August 14, 2014	$	122	$	(3	)	$	119	$	94	$	25
May 15, 2014	$	115	$	(4	)	$	111	$	88	$	23
February 14, 2014 (2)	$	107	$	(3	)	$	104	$	87	$	17

(1) Payable to unitholders of record at the close of business on October 31, 2014, for the period July 1, 2014 through September 30, 2014.

(2) The distribution paid by AAP on February 14, 2014 was prorated as of the date of the consummation of our IPO, such that the owners of AAP prior to our IPO received the portion of the distribution attributable to the period prior to our IPO, and the owners of AAP at the date of record of January 31, 2014, including us, received the portion of the distribution attributable to the period beginning on the date of the IPO through the end of the fourth quarter of 2013.

In September 2013, the AAP credit agreement was amended to increase the amount of the term loan by $300 million. Upon receipt, the net term loan proceeds of $299 million were distributed to AAP’s partners, excluding AAP Management Unit holders, in proportion to their respective ownership interests.