Net Income Per Limited Partner Unit

3 Months Ended

Mar. 31, 2020

Net income per unit applicable to common limited partner units is computed by dividing the respective limited partners’ interest in net income attributable to the Partnership for the period by the weighted average number of common units outstanding for the period. Because we have more than one class of participating securities, we use the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include common units, general partner units and IDRs. Basic and diluted net income per unit are the same because we do not have any potentially dilutive units outstanding for the periods presented.

Net income earned by the Partnership is allocated between the limited partners and the general partner (including IDRs) in accordance with our partnership agreement. Earnings are allocated based on actual cash distributions declared to our unitholders, including those attributable to IDRs. To the extent net income attributable to the Partnership exceeds or is less than cash distributions, this difference is allocated based on the unitholders’ respective ownership percentages.

The following tables show the allocation of net income attributable to the Partnership to arrive at net income per limited partner unit:


	Three Months Ended March 31,
	2020		2019
Net income	$	142	$	137
Less:
Net income attributable to noncontrolling interests	4		5
Net income attributable to the Partnership	138		132
Less:
General partner’s distribution declared⁽¹⁾	55		26
Limited partners’ distribution declared on common units	107		93
Income (less than)/in excess of distributions	$	(24)	$	13

⁽¹⁾ For the three months ended March 31, 2019, this includes the impact of waived distributions to the holders of IDRs. See Note 2—Related Party Transactions for additional information.


	Three Months Ended March 31, 2020
	General Partner		Limited Partners’ Common Units		Total

	(in millions of dollars, except per unit data)
Distributions declared	$	55	$	107	$	162
Income less than distributions	—		(24)		(24)
Net income attributable to the Partnership	$	55	$	83	$	138
Weighted average units outstanding:
Basic and diluted			233.3
Net income per limited partner unit:
Basic and diluted			$	0.36


	Three Months Ended March 31, 2019
	General Partner		Limited Partners’ Common Units		Total

	(in millions of dollars, except per unit data)
Distributions declared⁽¹⁾	$	26	$	93	$	119
Income in excess of distributions	1		12		13
Net income attributable to the Partnership	$	27	$	105	$	132
Weighted average units outstanding:
Basic and diluted			223.8
Net income per limited partner unit:
Basic and diluted			$	0.47

⁽¹⁾ This includes the impact of waived distributions to the holders of IDRs. See Note 2—Related Party Transactions for additional information.