Net Income Per Common Unit (Tables)

12 Months Ended

Dec. 31, 2019

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):


	Year Ended December 31,
	2019		2018		2017
Basic Net Income per Common Unit
Net income attributable to PAA	$	2,171	$	2,216	$	856
Distributions to Series A preferred unitholders	(149)		(149)		(142)
Distributions to Series B preferred unitholders	(49)		(49)		(11)
Distributions to participating securities	(3)		(3)		(2)
Other	(3)		(6)		(16)
Net income allocated to common unitholders ⁽¹⁾	$	1,967	$	2,009	$	685

Basic weighted average common units outstanding	727		726		717

Basic net income per common unit	$	2.70	$	2.77	$	0.96

Diluted Net Income per Common Unit
Net income attributable to PAA	$	2,171	$	2,216	$	856
Distributions to Series A preferred unitholders	—		—		(142)
Distributions to Series B preferred unitholders	(49)		(49)		(11)
Distributions to participating securities	(3)		(3)		(2)
Other	—		—		(16)
Net income allocated to common unitholders ⁽¹⁾	$	2,119	$	2,164	$	685

Basic weighted average common units outstanding	727		726		717
Effect of dilutive securities:
Series A preferred units	71		71		—
Equity-indexed compensation plan awards	2		2		1
Diluted weighted average common units outstanding	800		799		718

Diluted net income per common unit	$	2.65	$	2.71	$	0.95

⁽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 (i.e., undistributed loss), if any, are allocated to the 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.