Net Income Per Limited Partner Unit Net income per unit applicable to common units and to subordinated units is computed by dividing the respective limited partners' interest in net income by the weighted-average number of common units and subordinated units outstanding for the period. Because the Partnership has more than one class of participating securities, it uses the two-class method when calculating the net income per unit applicable to limited partners. The classes of participating securities include common units, subordinated units and incentive distribution rights. Basic and diluted net income per unit are the same because the Partnership does not have any potentially dilutive units outstanding for the periods presented. Pursuant to our cash distribution policy, within 60 days after the end of each quarter, we intend to distribute to the holders of common and subordinated units on a quarterly basis at least the minimum quarterly distribution of $0.1675 per unit, or $0.67 on an annualized basis, to the extent we have sufficient cash after establishment of cash reserves and payment of fees and expenses, including payments to our general partner and its affiliates. On November 1, 2016, the board of directors of MLP GP, the Partnership's general partner, declared a quarterly cash distribution for the period July 1, 2016, through September 30, 2016, of $0.1975 per unit. This distribution is payable on November 18, 2016, to unitholders of record as of November 11, 2016. The calculation of net income per unit is as follows: | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2016 (in millions, except per unit data) | Limited Partners' Common Units | | Limited Partners' Subordinated Units | | Incentive Distribution Rights | | Total | Net income attributable to partners | | | | | | | | Distribution | $ | 10.6 |
| | $ | 9.3 |
| | $ | 0.1 |
| | $ | 20 |
| Distribution in excess of net income | (7.7 | ) | | (9.3 | ) | | (0.1 | ) | | (17.1 | ) | Net income attributable to partners | $ | 2.9 |
| | $ | — |
| | $ | — |
| | $ | 2.9 |
| | | | | | | | | Weighted average limited partner units outstanding | | | | | | | | Basic and diluted | 53.8 |
| | 46.8 |
| | | | 100.6 |
| Net income attributable to partners' ownership interest per limited partner unit | | | | | | | | Basic and diluted | $ | 0.05 |
| | $ | — |
| | | | $ | 0.03 |
| | | | | | | | | Nine Months Ended September 30, 2016 (in millions, except per unit data) | Limited Partners' Common Units | | Limited Partners' Subordinated Units | | Incentive Distribution Rights | | Total | Net income attributable to partners | | | | | | | | Distribution | $ | 31.3 |
| | $ | 27.4 |
| | $ | 0.1 |
| | $ | 58.8 |
| Distribution in excess of net income | (5.4 | ) | | (7.3 | ) | | 2.2 |
| | (10.5 | ) | Net income attributable to partners | $ | 25.9 |
| | $ | 20.1 |
| | $ | 2.3 |
| | $ | 48.3 |
| | | | | | | | | Weighted average limited partner units outstanding | | | | | | | | Basic and diluted | 53.8 |
| | 46.8 |
| | | | 100.6 |
| Net income attributable to partners' ownership interest per limited partner unit | | | | | | | | Basic and diluted | $ | 0.48 |
| | $ | 0.43 |
| | | | $ | 0.46 |
|
| | | | | | | | | | | | | | | | | Three Months Ended September 30, 2015 (in millions, except per unit data) | Limited Partners' Common Units | | Limited Partners' Subordinated Units | | Incentive Distribution Rights | | Total | Net income attributable to partners | | | | | | | | Distribution | $ | 9.3 |
| | $ | 8.1 |
| | $ | — |
| | $ | 17.4 |
| Net income in excess of distribution | 2.5 |
| | 2.1 |
| | — |
| | 4.6 |
| Net income attributable to partners | $ | 11.8 |
| | $ | 10.2 |
| | $ | — |
| | $ | 22.0 |
| | | | | | | | | Weighted average limited partner units outstanding | | | | | | | | Basic and diluted | 53.8 |
| | 46.8 |
| | | | 100.6 |
| Net income attributable to partners' ownership interest per limited partner unit | | | | | | | | Basic and diluted | $ | 0.22 |
| | $ | 0.22 |
| | | | $ | 0.22 |
| | | | | | | | | Nine Months Ended September 30, 2015 (in millions, except per unit data) | Limited Partners' Common Units | | Limited Partners' Subordinated Units | | Incentive Distribution Rights | | Total | Net income attributable to partners | | | | | | | | Distribution | $ | 23.2 |
| | $ | 20.3 |
| | $ | — |
| | $ | 43.5 |
| Net income in excess of distribution(1) | 4.7 |
| | 3.4 |
| | — |
| | 8.1 |
| Net income attributable to partners | $ | 27.9 |
| | $ | 23.7 |
| | $ | — |
| | $ | 51.6 |
| | | | | | | | | Weighted average limited partner units outstanding | | | | | | | | Basic and diluted | 53.8 |
| | 46.8 |
| | | | 100.6 |
| Net income attributable to partners' ownership interest subsequent to IPO per limited partner unit | | | | | | | | Basic and diluted | $ | 0.52 |
| | $ | 0.51 |
| | | | $ | 0.51 |
|
(1) Net income attributable to partners and in excess of distribution is for the period subsequent to the IPO. |