Net Income Per Unit

12 Months Ended

Dec. 31, 2019

We use the two-class method when calculating the net income per unit applicable to limited partners, because we have more than one participating class of securities. Our participating securities consist of common units, general partner units and IDRs.

Earnings in excess of distributions are allocated to our general partner and 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.

Diluted net income per unit applicable to common limited partners includes the effects of potentially dilutive units on our common units. As of December 31, 2019, the only potentially dilutive units outstanding consist of unvested phantom units.

Our distributions earned with respect to a given period are declared subsequent to quarter end. Therefore, the table below represents total cash distributions applicable to the period in which the distributions are earned. The date of distribution for the distributions earned during the period ended December 31, 2019 is February 12, 2020. The calculation of net income per unit is as follows (dollars in thousands, except units and per unit amounts):



	Year Ended December 31,
	2019			2018			2017
Net income attributable to partners	$	96,749		$	90,182		$	69,409
Less: General partner's distribution (including IDRs) ⁽¹⁾	33,492			25,777			18,797
Less: Limited partners' distribution	83,873			76,113			69,057
Distributions in excess of earnings	$	(20,616	)	$	(11,708	)	$	(18,445	)

General partner's earnings:
Distributions (including IDRs)⁽¹⁾	$	33,492		$	25,777		$	18,797
Distributions in excess of earnings	(412		)	(234		)	(368		)
Total general partner's earnings	$	33,080		$	25,543		$	18,429

Limited partners' earnings on common units:
Distributions	$	83,873		$	76,113		$	69,057
Distributions in excess of earnings	(20,204		)	(11,474		)	(18,077		)
Total limited partners' earnings on common units	$	63,669		$	64,639		$	50,980

Weighted average limited partner units outstanding:
Common units - basic	24,413,294			24,390,286			24,348,063
Common units - diluted	24,418,641			24,396,881			24,376,972

Net income per limited partner unit:
Common - basic	$	2.61		$	2.65		$	2.09
Common - diluted ⁽²⁾	$	2.61		$	2.65		$	2.09

⁽¹⁾ General partner distributions (including IDRs) consist of the 2% general partner interest and IDRs, which represent the right of the general partner to receive increasing percentages of quarterly distributions of available cash from operating surplus in excess of 0.43125 per unit per quarter. See Note 12 for further discussion related to IDRs.

⁽²⁾ There were no outstanding common unit equivalents excluded from the diluted earnings per unit calculation during both years ended December 31, 2019 and December 31, 2017. Outstanding common unit equivalents totaling 1,776 were excluded from the diluted earnings per unit calculation for the years ended December 31, 2018, as these common unit equivalents did not have a dilutive effect under the treasury stock method.