Earnings per Unit

3 Months Ended

Mar. 31, 2023

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 unit holders 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 RBI equity awards will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of RBI 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):


	Three Months Ended March 31,
		2023		2022
Allocation of net income among partner interests:
Net income allocated to Class A common unitholders		$	189	$	183
Net income allocated to Partnership exchangeable unitholders		87		86
Net income attributable to common unitholders		$	276	$	269

Denominator - basic and diluted partnership units:
Weighted average Class A common units		202		202
Weighted average Partnership exchangeable units		143		145

Earnings per unit - basic and diluted:
Class A common units (a)		$	0.94	$	0.91
Partnership exchangeable units (a)		$	0.61	$	0.59

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