XML 21 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
NET INCOME PER LIMITED PARTNER UNIT
 9 Months Ended
Sep. 30, 2017
Earnings Per Share [Abstract]  
NET INCOME PER LIMITED PARTNER UNIT
3. NET INCOME PER LIMITED PARTNER UNIT
We determined basic and diluted net income per limited partner unit as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
  
2017
 
2016
 
2017
 
2016
  
(in millions, except per unit amounts)
Continuing operations:
  

 
  

 
  

 
  

Net income (loss)
$
196.0

 
$
(543.5
)
 
$
607.3

 
$
(100.1
)
Less: Net income (loss) attributable to:
  

 
  

 
  

 
 

Noncontrolling interest
102.9

 
(182.3
)
 
280.6

 
(16.9
)
Series 1 preferred unit distributions
—

 
22.5

 
29.0

 
67.5

Accretion of discount on Series 1 preferred units
—

 
1.2

 
8.5

 
3.5

Net income (loss) attributable to general and limited partner interests in Enbridge Energy Partners, L.P. – continuing operations
93.1

 
(384.9
)
 
289.2

 
(154.2
)
Distributions:
  

 
  

 
  

 
  

Incentive distributions(1)
(3.7
)
 
(5.3
)
 
(11.1
)
 
(15.7
)
Distributed earnings attributed to our General Partner
(3.2
)
 
(5.2
)
 
(9.6
)
 
(15.7
)
Distributed earnings attributed to Class D and Class E units(1)
(6.3
)
 
(49.1
)
 
(19.0
)
 
(147.3
)
Total distributed earnings to our General Partner, Class D, Class E and Class F units
(13.2
)
 
(59.6
)
 
(39.7
)
 
(178.7
)
Total distributed earnings attributed to our common units and i-units
(147.7
)
 
(204.1
)
 
(441.0
)
 
(608.7
)
Total distributed earnings
(160.9
)
 
(263.7
)
 
(480.7
)
 
(787.4
)
Overdistributed earnings
$
(67.8
)
 
$
(648.6
)
 
$
(191.5
)
 
$
(941.6
)
Discontinued operations:
  

 
  

 
  

 
  

Net loss
$
—

 
$
(31.1
)
 
$
(56.8
)
 
$
(124.4
)
Less: Net loss attributable to:
  

 
  

 
  

 
  

Noncontrolling interest
—

 
(9.6
)
 
(18.8
)
 
(35.9
)
Net loss attributable to general and limited partner interests in Enbridge Energy Partners, L.P. – discontinued operations
$
—

 
$
(21.5
)
 
$
(38.0
)
 
$
(88.5
)
Weighted average common units and i-units outstanding
421.0

 
349.1

 
391.6

 
347.0




 
Three months ended September 30,
 
Nine months ended September 30,
  
2017
 
2016
 
2017
 
2016
 
 
 
 
 
 
 
 
  
(in millions, except per unit amounts)
Basic and diluted earnings per unit:
  

 
  

 
  

 
  

Distributed earnings per common unit and i-unit – continuing operations(2)
$
0.35

 
$
0.58

 
$
1.13

 
$
1.75

Overdistributed earnings per common unit and i-unit(3)
(0.16
)
 
(1.83
)
 
(0.48
)
 
(2.66
)
Net income (loss) per common unit and i-unit (basic and diluted) – continuing operations(4)
0.19

 
(1.25
)
 
0.65

 
(0.91
)
Net loss per common unit and i-unit (basic and diluted) – discontinued operations(4)
—

 
(0.06
)
 
(0.10
)
 
(0.25
)
Net income (loss) per common unit and i-unit (basic and diluted)
$
0.19

 
$
(1.31
)
 
$
0.55

 
$
(1.16
)
_____________________
(1)
For the three and nine months ended September 30, 2017, Class D units and incentive distribution units (IDUs) were not entitled to distributions as the wholly-owned subsidiary of our General Partner irrevocably waived its rights associated with the Class D units and IDUs; for the three and nine months ended September 30, 2017, incentive distributions were made to Class F units. For the three and nine months ended September 30, 2016, incentive distributions were made to IDUs and Class D units.
(2)
Represents the total distributed earnings to common units and i-units divided by the weighted average number of common units and i-units outstanding for the period.
(3)
Represents the common units’ and i-units’ share (98%) of distributions in excess of earnings divided by the weighted average number of common units and i-units outstanding for the period and overdistributed earnings allocated to the common units and i-units based on the distribution waterfall that is outlined in our partnership agreement.
(4)
For the three months ended September 30, 2017, 18,114,975 anti-dilutive Class E units were excluded from the if-converted method of calculating diluted earnings per share. For the nine months ended September 30, 2017 and the three and nine months ended September 30, 2016, 43,201,310 anti-dilutive Preferred units and 18,114,975 anti-dilutive Class E units were excluded from the if-converted method of calculating diluted earnings per unit. Effective April 27, 2017, a wholly-owned subsidiary of our General Partner irrevocably waived all of its rights associated with the Class D units, as such for the nine months ended September 30, 2017, 66,100,000 of Class D units were excluded from the if-converted method of calculating diluted earnings per unit. For the three and nine months ended September 30, 2016, 66,100,000 anti-dilutive Class D units were excluded from the if-converted method of calculating diluted earnings per unit.
Simplification of Incentive Distributions
On April 27, 2017, a wholly-owned subsidiary of our General Partner irrevocably waived all of its rights associated with its 66.1 million Class D units and its 1,000 incentive distribution units (IDUs) in exchange for the issuance of 1,000 Class F units. The irrevocable waiver is effective with respect to distributions declared with a record date after April 27, 2017. The Class F units are entitled to receive an incentive distribution for amounts distributed in excess of the Minimum Quarterly Distribution as described in the following table:

Distribution Targets
 
Portion of Quarterly
Distribution Per Unit
 
Percentage Distributed
to General Partner and
 Class F Units (1)
 
Percentage Distributed
to Limited Partners
Minimum Quarterly Distribution
 
Up to $0.295
 
2%
 
98%
First Target Distribution
 
> $0.295 to $0.35
 
15%
 
85%
Over First Target Distribution
 
> $0.35
 
25%
 
75%
_____________________
(1)
For distributions in excess of the Minimum Quarterly Distribution, this percentage includes both the General Partner’s distributions of 2% and the distribution to the Class F Units.