(16) Net (loss) Income per Limited Partner Unit

Net (loss) income per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners’ interest in net (loss) income, after deducting any incentive distributions, by the weighted-average number of outstanding common and subordinated units. The Partnership’s net (loss) income is allocated to the limited partners in accordance with their respective ownership percentages, after giving effect to priority income allocations for incentive distributions, if any, to the holder of the IDRs, pursuant to the Partnership Agreement, which are declared and paid following the close of each quarter. Earnings in excess of distributions are allocated to the limited partners based on their respective ownership interests. Payments made to the Partnership’s unitholders are determined in relation to actual distributions declared and are not based on the net (loss) income allocations used in the calculation of earnings per unit.

In addition to the common and subordinated units, the Partnership has also identified the IDRs and phantom units as participating securities and uses the two-class method when calculating the net (loss) income per unit applicable to limited partners, which is based on the weighted-average number of common units and subordinated units outstanding during the period. Diluted net income per unit includes the effects of potentially dilutive time-based and performance-based phantom units on the Partnership’s common units. Basic and diluted earnings per unit applicable to subordinated limited partners are the same because there are no potentially dilutive subordinated units outstanding.

The following computation of net (loss) income per limited partner unit is as follows for the three months ended March 31, 2018 and 2017:


	Three Months Ended March 31, 2018
	Common		Subordinated		General
	Units		Units		Partner
Weighted-average common units outstanding—basic		14,438		11,905		—
Effect of nonvested phantom units		—		—		—
Weighted-average common units outstanding—diluted		14,438		11,905		—


	Three Months Ended March 31, 2018
	Common		Subordinated		General
	Units		Units		Partner		Total
Distributions declared	$	9,066	$	7,441	$	1,264	$	17,771
Earnings less than distributions		(20,380)		(16,726)		—		(37,106)
Net (loss) income attributable to partners	$	(11,314)	$	(9,285)	$	1,264	$	(19,335)
Weighted-average units outstanding—basic		14,438		11,905
Weighted-average units outstanding—diluted		14,438		11,905
Net loss per limited partner unit—basic	$	(0.78)	$	(0.78)
Net loss per limited partner unit—diluted	$	(0.78)	$	(0.78)


	Three Months Ended March 31, 2017
	Common		Subordinated		General
	Units		Units		Partner
Weighted-average common units outstanding—basic		14,380		11,905		—
Effect of nonvested phantom units		848		—		—
Weighted-average common units outstanding—diluted		15,228		11,905		—


	Three Months Ended March 31, 2017
	Common		Subordinated		General
	Units		Units		Partner		Total
Distributions declared	$	7,999	$	6,607	$	537	$	15,143
Earnings less than distributions		(6,905)		(5,703)		—		(12,608)
Net income attributable to partners	$	1,094	$	904	$	537	$	2,535
Weighted-average units outstanding—basic		14,380		11,905
Weighted-average units outstanding—diluted		15,228		11,905
Net income per limited partner unit—basic	$	0.08	$	0.08
Net income per limited partner unit—diluted	$	0.07	$	0.08