Net Income Per Limited Partner Unit

3 Months Ended

Mar. 31, 2021

The following table details the distributions declared and/or paid for the periods presented:


Three Months Ended	Date Paid or to be Paid	General Partner	Limited Partners' Common Units	Limited Partners' Subordinated Units	Total	Distributions per Limited Partner Unit (in dollars)
December 31, 2019	February 13, 2020	1.2	18.2	18.2	37.6	0.3475
March 31, 2020	May 14, 2020	1.2	18.2	18.2	37.6	0.3475


December 31, 2020	February 11, 2021	1.2	18.2	18.2	37.6	0.3475
March 31, 2021	May 13, 2021	1.2	36.4	—	37.6	0.3475

Earnings in excess of distributions are allocated to the limited partners based on their respective percentage interests. Payments made to the Partnership’s unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit.

In addition to the common and subordinated units, the Partnership also identified the incentive distribution rights ("IDRs") currently held by the General Partner as a participating security and uses the two-class method when calculating the net income per unit applicable to limited partners that is based on the weighted-average number of common units outstanding during the period.

Following the payment of the distribution on February 11, 2021, the financial tests required for the conversion of our subordinated units were satisfied under the terms of our partnership agreement. As a result, on February 12, 2021, all of the Partnership's subordinated units were converted into common units on a one-for-one basis and the subordination period was terminated. Following the conversion, we continue to use the two-class method when calculating the net income per unit applicable to limited partners. The remaining classes of participating securities are common units and incentive distribution rights.

When calculating basic earnings per unit under the two-class method for a master limited partnership, net income for the current reporting period is reduced by the amount of available cash that will be distributed to the General Partner and limited partners for that reporting period. The following tables show the allocation of net income to arrive at net income per limited partner unit for the three months ended March 31, 2021 and 2020:


	Three Months Ended March 31,
	2021		2020
Net income attributable to the Partnership	$	42.0	$	41.7
Less:
Incentive distribution rights currently held by the General Partner	1.2		1.2
Limited partners' distribution declared on common units	36.4		18.2
Limited partners' distribution declared on subordinated units	—		18.2
Net income attributable to the Partnership in excess of distributions	$	4.4	$	4.1


	Three Months Ended March 31, 2021
	General Partner		Limited Partners' Common Units		Limited Partners' Subordinated Units		Total
Distributions declared	$	1.2	$	36.4	$	—	$	37.6
Net income attributable to the Partnership in excess of distributions	—		(5.1)		9.5		4.4
Net income attributable to the Partnership	$	1.2	$	31.3	$	9.5	$	42.0
Weighted average units outstanding:
Basic and Diluted(1)			80.4		52.4
Net income per limited partner unit (in dollars):
Basic and Diluted(1)			$	0.39	$	0.18

(1)The 52.4 million weighted average subordinated units outstanding and $0.18 net income per limited partner unit have been calculated only for the period prior to conversion. All of the subordinated units were converted into common units on February 12, 2021.

On April 15, 2021, the Partnership declared a cash distribution of $0.3475 per limited partner unit to unitholders of record on April 29, 2021, for the three months ended March 31, 2021. All of the subordinated units were converted into common units on February 12, 2021. As a result, on the date of record, there were no subordinated units outstanding, and therefore, no portion of the cash distribution has been allocated to the limited partners' subordinated units. However, pursuant to the requirements of the two-class method, and as stated above, the net income per unit amount applicable to the subordinated units has been calculated for the period of time the units were outstanding prior to their conversion.


	Three Months Ended March 31, 2020
	General Partner		Limited Partners' Common Units		Limited Partners' Subordinated Units		Total
Distributions declared	$	1.2	$	18.2	$	18.2	$	37.6
Net income attributable to the Partnership in excess of distributions	—		2.1		2.0		4.1
Net income attributable to the Partnership	$	1.2	$	20.3	$	20.2	$	41.7
Weighted average units outstanding:
Basic and Diluted			52.4		52.4
Net income per limited partner unit (in dollars):
Basic and Diluted			$	0.39	$	0.39