Net Income Per Limited Partner Unit

3 Months Ended

Mar. 31, 2022

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. Since the Series A Preferred Units are not considered a participating security, our only class of participating securities is the common units. For the three months ended March 31, 2022 and March 31, 2021, our Series A Preferred Units were dilutive to net income per limited partner unit.

Net income earned by the Partnership is allocated between the classes of participating securities in accordance with the terms of the Second Amended and Restated Partnership Agreement, after giving effect to priority income allocations to the holders of the Series A Preferred Units. Earnings are allocated based on actual cash distributions declared to our unitholders, if applicable. 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. For the diluted net income per limited partner unit calculation, the Series A Preferred Units are assumed to be converted at the beginning of the period into common limited partner units on a one-for-one basis, and the distribution formula for available cash is recalculated using the available cash amount increased only for the preferred distributions, which would have been attributable to the common units after conversion.


	Three Months Ended March 31, 2022		Three Months Ended March 31, 2021
	Limited Partners’ Common Units
	(in millions of dollars, except per unit data)
Net income attributable to the Partnership’s common unitholders (basic)	$	146	$	151
Dilutive effect of preferred units	12		12
Net income attributable to the Partnership’s common unitholders (diluted)	$	158	$	163

Weighted average units outstanding - Basic	393.3		393.3
Dilutive effect of preferred units	50.8		50.8
Weighted average units outstanding - Diluted	444.1		444.1

Net income per limited partner unit:
Basic	$	0.37	$	0.38
Diluted	$	0.36	$	0.37