Earnings Per Unit

12 Months Ended

Dec. 31, 2021

Partnership uses the two-class method in the computation of earnings per unit. Pursuant to the terms of the partnership agreement, RBI, as the holder of the Class A common units, is entitled to receive distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”) are entitled to receive distributions from Partnership in an amount per unit equal to the dividends payable by RBI on each RBI common share. Partnership’s net income available to common unitholders is allocated between the Class A common units and Partnership exchangeable units on a fully-distributed basis and reflects residual net income after noncontrolling interests. Basic and diluted earnings per Class A common unit is determined by dividing net income allocated to Class A common unitholders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period.

There are no dilutive securities for Partnership as the exercise of stock options will not affect the numbers of Class A common units or Partnership exchangeable units outstanding. However, the issuance of shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units.

The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts):


	2021		2020		2019
Allocation of net income among partner interests:
Net income allocated to Class A common unitholders	$	838	$	486	$	643
Net income allocated to Partnership exchangeable unitholders	411		262		466
Net income attributable to common unitholders	$	1,249	$	748	$	1,109
Denominator - basic and diluted partnership units:
Weighted average Class A common units	202		202		202
Weighted average Partnership exchangeable units	151		162		194
Earnings per unit - basic and diluted:
Class A common units (a)	$	4.15	$	2.41	$	3.18
Partnership exchangeable units (a)	$	2.72	$	1.62	$	2.40

(a)Earnings per unit may not recalculate exactly as it is calculated based on unrounded numbers.