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NET INCOME PER LIMITED PARTNER UNIT
 3 Months Ended
Mar. 31, 2016
Earnings Per Share [Abstract]  
NET INCOME PER LIMITED PARTNER UNIT

2. NET INCOME PER LIMITED PARTNER UNIT

We allocate our net income among our Series 1 Preferred Units, or Preferred Units, our General Partner interest and our limited partner units using the two-class method in accordance with applicable authoritative accounting guidance. Under the two-class method, we allocate our net income attributable to our General Partner and our limited partners according to the distribution formula for available cash as set forth in our partnership agreement. We allocate our net income to our limited partners owning Class D units and Class E units equal to the distributions that they receive. We also allocate any earnings in excess of distributions to our General Partner and limited partners owning Class A and Class B common units and i-units utilizing the distribution formula for available cash specified in our partnership agreement. We allocate any distributions in excess of earnings for the period to our General Partner and limited partners owning Class A and B common units and i-units based on their sharing of losses of 2% and 98%, respectively, as set forth in our partnership agreement. We calculate distributions to the General Partner and limited partners based upon the distribution rates and percentages set forth in the following table:
 
 
                    Distribution Targets
 
Portion of Quarterly
Distribution Per Unit
 
Percentage Distributed to
General Partner and
IDUs(1)
 
Percentage Distributed to
Limited partners
Minimum Quarterly Distribution
 
 
Up to $0.5435
 
 
 
2
% 
 
 
98
% 
First Target Distribution
 
 
> $0.5435
 
 
 
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 Incentive Distribution Unit holder, a wholly-owned subsidiary of our General Partner.
We determined basic and diluted net income per limited partner unit as follows:
 
 
For the three months
ended March 31,
  
 
2016
 
2015
  
 
(in millions, except per
unit amounts)
Net income
 
$
172.4
 
 
$
217.8
 
Less: Net income attributable to:
 
 
  
 
 
 
  
 
 Noncontrolling interest
 
 
(68.8
) 
 
 
(51.3
) 
 Series 1 preferred unit distributions
 
 
(22.5
) 
 
 
(22.5
) 
 Accretion of discount on Series 1 preferred units
 
 
(1.1
) 
 
 
(3.9
) 
Net income attributable to general and limited partner interests in Enbridge Energy Partners, L.P.
 
 
80.0
 
 
 
140.1
 
Less: distributions:
 
 
  
 
 
 
  
 
Incentive distributions
 
 
(5.2
) 
 
 
(3.4
) 
Distributed earnings attributed to our General Partner
 
 
(5.2
) 
 
 
(5.0
) 
Distributed earnings attributed to Class D and Class E units
 
 
(49.1
) 
 
 
(48.0
) 
Total distributed earnings to our General Partner, Class D and Class E units and IDUs
 
 
(59.5
) 
 
 
(56.4
) 
Total distributed earnings attributed to our common units and i-units
 
 
(201.7
) 
 
 
(193.5
) 
Total distributed earnings
 
 
(261.2
) 
 
 
(249.9
) 
Overdistributed earnings
 
$
(181.2
) 
 
$
(109.8
) 
Weighted average common units and i-units outstanding
 
 
344.7
 
 
 
332.6
 
Basic and diluted earnings per unit:
 
 
  
 
 
 
  
 
Distributed earnings per common unit and i-unit(1)
 
$
0.59
 
 
$
0.58
 
Overdistributed earnings per common unit and i-unit(2)
 
 
(0.52
) 
 
 
(0.32
) 
Net income per common unit and i-unit (basic and diluted)(3)
 
$
0.07
 
 
$
0.26
 
 
(1)
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.
(2)
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.
(3)
For the three months ended March 31, 2016 and 2015, 43,201,310 anti-dilutive Preferred units, 66,100,000 anti-dilutive Class D units and 18,114,975 anti-dilutive Class E units were excluded from the if-converted method of calculating diluted earnings per unit.