Net Income per Unit

3 Months Ended

Mar. 31, 2017

Net income per unit applicable to limited partners is computed by dividing limited partners’ interest in net income by the weighted‑average number of outstanding common units. Our net income is allocated to the limited partners in accordance with their respective partnership percentages, after giving effect to any priority income allocations for incentive distributions and distributions on employee unit awards. Earnings in excess of distributions are allocated to the limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit.

In addition to the common units, we identify the IDRs as participating securities and use the two-class method when calculating net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Diluted net income per unit includes the effects of potentially dilutive units on our common units, consisting of unvested phantom units.

A reconciliation of the numerators and denominators of the basic and diluted per unit computations is as follows:



	For the Three Months Ended March 31,
	2017			2016
	(in millions, except units and per unit amounts)
Net income and comprehensive income	$	1		$	62
Less:
Incentive distribution rights	21			20
Distributions on nonvested phantom unit awards	2			1
Limited partners' interest in net income (loss)	$	(22	)	$	41
Weighted average limited partner units outstanding:
Common - basic	98,609,608			87,453,333
Common - equivalents	106,350			21,354
Common - diluted	98,715,958			87,474,687
Net income (loss) per limited partner unit:
Common - basic and diluted	$	(0.22	)	$	0.47