XML 31 R19.htm IDEA: XBRL DOCUMENT

EARNINGS PER LIMITED PARTNER UNIT

3 Months Ended

Mar. 31, 2023

12.EARNINGS PER LIMITED PARTNER UNIT

We utilize the two-class method in calculating basic and diluted earnings per limited partner unit ("EPU"). Subsequent to the JC Resources Acquisition, which is discussed in more detail in Note 1 – Organization and Presentation, net income attributable to ARLP is allocated to limited partners and participating securities with nonforfeitable distributions or distribution equivalents, while net losses attributable to ARLP are allocated only to limited partners but not to participating securities. Prior to the JC Resources Acquisition, in addition to limited partners and participating securities allocations, amounts are also allocated to our general partner for historical earnings from the mineral interests acquired in the JC Resources Acquisition.

Our participating securities are outstanding restricted unit awards under our Long-Term Incentive Plan ("LTIP") and phantom units in notional accounts under our Supplemental Executive Retirement Plan ("SERP") and the MGP Amended and Restated Deferred Compensation Plan for Directors ("Directors' Deferred Compensation Plan").

The following is a reconciliation of net income attributable to ARLP used for calculating basic and diluted earnings per unit and the weighted-average units used in computing EPU for the three months ended March 31, 2023 and 2022:


	Three Months Ended
	March 31,
	2023		2022 (1)

	(in thousands, except per unit data)

Net income attributable to ARLP	$	191,185	$	38,083
Adjustment:
General partner's interest in net income attributable to ARLP		(1,384)		(1,431)

Limited partners' interest in net income attributable to ARLP		189,801		36,652

Less:
Distributions to participating securities		(2,432)		(1,552)
Undistributed earnings attributable to participating securities		(2,979)		—

Net income attributable to ARLP available to limited partners	$	184,390	$	35,100

Weighted-average limited partner units outstanding – basic and diluted		127,289		127,195

Earnings per limited partner unit - basic and diluted (2)	$	1.45	$	0.28

(1)	Recast as discussed in Note 1 – Organization and Presentation.

(2)

Diluted EPU gives effect to all potentially dilutive common units outstanding during the period using the treasury stock method. Diluted EPU excludes all potentially dilutive units calculated under the treasury stock method if their effect is anti-dilutive. The combined total of LTIP, SERP and Directors' Deferred Compensation Plan units of 3,147 and 3,139 for the three months ended March 31, 2023 and 2022, respectively, were considered anti-dilutive under the treasury stock method.