Net Earnings per Common Unit

Net income and net losses are allocated to the common units, Class B common units and the general partner interest in accordance with the provisions of our agreement of limited partnership. In general, our agreement of limited partnership provides that if the Partnership has a net profit for a year, net income (including any undistributed net earnings) will be allocated among the General Partner and limited partners in the same proportion that Available Cash for such year was declared among the General Partner and the limited partners. If the Partnership has a net loss for a year, the loss will be allocated among the General Partner and limited partners in the same proportion as any net income was allocated to such partners in prior years (beginning with the first year in which net income was allocated to the partners). Net earnings per common unit are calculated using the two-class method and are based on the weighted-average number of common units outstanding during the period. The following table provides a calculation for net earnings per common unit for the three and nine months ended September 30, 2017 and 2016:



	Three months ended September 30,						Nine months ended September 30,
	2017			2016			2017			2016
	(in millions, except per unit amounts)
Basic earnings per common unit:
Net earnings	$	22.8		$	28.8		$	104.5		$	165.2
Less distributions declared to:
Common units	25.1			32.7			72.6			108.4
Class B common units	0.3			0.5			0.9			1.6
General partner interest	8.4			15.8			22.5			57.3
(Distributions in excess of earnings) undistributed earnings	$	(11.0	)	$	(20.2	)	$	8.5		$	(2.1	)

Allocation of (distributions in excess of earnings) undistributed earnings to ⁽¹⁾:
Common units	$	(8.1	)	$	(13.5	)	$	10.6		$	(2.8	)
Class B common units	(0.1		)	(0.2		)	0.1			—
General partner interest	(2.8		)	(6.5		)	(2.2		)	0.7
Total (distributions in excess of earnings) undistributed earnings	$	(11.0	)	$	(20.2	)	$	8.5		$	(2.1	)

Net earnings allocable to General Partner ⁽²⁾	$	5.6		$	9.3		$	20.3		$	58.0
Net earnings allocable to Class B common units	$	0.2		$	0.3		$	1.0		$	1.6

Net earnings allocable to common units	$	17.0		$	19.2		$	83.2		$	105.6
Weighted-average common units outstanding	18.5			18.5			18.5			18.5
Net earnings per common unit	$	0.92		$	1.04		$	4.49		$	5.71


⁽¹⁾	In accordance with our agreement of limited partnership, undistributed earnings (distributions in excess of earnings) are allocated in the same percentage that Available Cash for such period was declared among the General Partner (including with respect to the embedded incentive distribution rights) and limited partners. The allocation percentages were as follows:



	Three months ended September 30,
	2017		2016

Allocation percentage for undistributed earnings or distributions in excess of earnings:
Common units	74.39	%	66.81	%
Class B common units	0.97	%	0.97	%
General partner interest	24.64	%	32.22	%

In accordance with our agreement of limited partnership, undistributed earnings (distributions in excess of earnings) for the year-to-date periods presented consist of the undistributed earnings (distributions in excess of earnings) from the quarterly allocation of earnings for the preceding quarters of each year.


⁽²⁾	Net earnings allocable to the General Partner include net earnings allocated to the General Partner and TLPH from the Operating Partnership of $0.2 million and $1.0 million for the three and nine months ended September 30, 2017, respectively, and $0.3 million and $1.7 million for the three and nine months ended September 30, 2016, respectively.

There were no dilutive TNCLP units outstanding for the three and nine months ended September 30, 2017 and 2016 and therefore, basic and diluted net earnings per common unit are the same.