The following table sets forth the computation of basic and diluted net income/(loss) per limited partner unit for the periods indicated (in millions, except per unit data):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Basic Net Income per Limited Partner Unit
Net income attributable to PAA	$	124	$	287	$	407	$	671
Less: General partner’s incentive distribution (1)		(146)		(117)		(289)		(227)
Less: General partner 2% ownership (1)		—		(4)		(2)		(9)
Net income/(loss) attributable to limited partners		(22)		166		116		435
Less: Undistributed earnings allocated and distributions to participating securities (1)		(1)		(1)		(3)		(3)
Net income/(loss) attributable to limited partners in accordance with application of the two-class method for MLPs	$	(23)	$	165	$	113	$	432

Basic weighted average limited partner units outstanding		397		365		390		363

Basic net income/(loss) per limited partner unit	$	(0.06)	$	0.45	$	0.29	$	1.19

Diluted Net Income per Limited Partner Unit
Net income attributable to PAA	$	124	$	287	$	407	$	671
Less: General partner’s incentive distribution (1)		(146)		(117)		(289)		(227)
Less: General partner 2% ownership (1)		—		(4)		(2)		(9)
Net income/(loss) attributable to limited partners		(22)		166		116		435
Less: Undistributed earnings allocated and distributions to participating securities (1)		(1)		(1)		(3)		(3)
Net income/(loss) attributable to limited partners in accordance with application of the two-class method for MLPs	$	(23)	$	165	$	113	$	432

Basic weighted average limited partner units outstanding		397		365		390		363
Effect of dilutive securities: Weighted average LTIP units		3		2		3		2
Diluted weighted average limited partner units outstanding		400		367		393		365

Diluted net income/(loss) per limited partner unit	$	(0.06)	$	0.45	$	0.29	$	1.18

⁽¹⁾

We calculate net income attributable to limited partners based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners and participating securities in accordance with the contractual terms of the partnership agreement and as further prescribed under the two-class method.