Net Income Per Common Unit (Tables)

3 Months Ended

Mar. 31, 2018

Computation of basic and diluted net income per common unit

The following table sets forth the computation of basic and diluted net income per common unit (in millions, except per unit data):



	Three Months Ended March 31,
	2018			2017
Basic Net Income per Common Unit
Net income	$	288		$	444
Distributions to Series A preferred unitholders	(37		)	(34		)
Distributions to Series B preferred unitholders	(12		)	—
Distributions to participating securities	(1		)	(1		)
Other	(1		)	(3		)
Net income allocated to common unitholders ⁽¹⁾	$	237		$	406

Basic weighted average common units outstanding	725			691

Basic net income per common unit	$	0.33		$	0.59

Diluted Net Income per Common Unit
Net income	$	288		$	444
Distributions to Series A preferred unitholders	(37		)	—
Distributions to Series B preferred unitholders	(12		)	—
Distributions to participating securities	(1		)	(1		)
Other	(1		)	—
Net income allocated to common unitholders ⁽¹⁾	$	237		$	443

Basic weighted average common units outstanding	725			691
Effect of dilutive securities:
Series A preferred units	—			65
Equity-indexed compensation plan awards	2			2
Diluted weighted average common units outstanding	727			758

Diluted net income per common unit	$	0.33		$	0.58

⁽¹⁾

We calculate net income allocated to common unitholders based on the distributions pertaining to the current period’s net income (whether paid in cash or in-kind). After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.