Earnings Per Unit
 12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Earnings Per Unit
20.
Earnings Per Unit
Earnings per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners’ interest in net income (loss), after deducting any incentive distributions, by the weighted average number of outstanding common and subordinated units. The Partnership’s net income is allocated to the limited partners in accordance with their respective ownership percentages, after giving effect to priority income allocations for incentive distributions, which are declared and paid following the close of each quarter. Earnings in excess of distributions are allocated to the limited partners based on their respective ownership interests. Payments made to the Partnership’s unitholders are determined in relation to actual distributions declared and are not based on the net income (loss) allocations used in the calculation of earnings per unit. Quarterly net income per limited partner and per unit amounts are stand-alone calculations and may not be additive to year to date amounts due to rounding and changes in outstanding units.
In addition to the common and subordinated units, the Partnership has also identified the IDRs and unvested restricted units as participating securities and uses the two-class method when calculating the net income (loss) per unit applicable to limited partners, which is based on the weighted average number of common units outstanding during the period. Diluted earnings per unit includes the effects of potentially dilutive units on the Partnership’s common units, consisting of unvested restricted units. Basic and diluted earnings (losses) per unit applicable to subordinated limited partners are the same because there are no potentially dilutive subordinated units outstanding.
The table below shows the weighted average common units outstanding used to compute net income per common unit for the periods indicated.
 
Years Ended December 31,
 
2016
 
2015
 
2014
Weighted average limited partner common units - basic
11,202,427

 
10,975,941

 
10,131,928

Dilutive effect of unvested restricted and phantom units
358,190

 
165,392

 
63,638

Weighted average limited partner common units - dilutive
11,560,617

 
11,141,333

 
10,195,566


The following tables provide a reconciliation of net income and the assumed allocation of net income to the limited partners' interest for purposes of computing net income per unit for the periods presented.
 
Year Ended December 31, 2016
 
Common
 
Subordinated
 
IDR
 
Total
 
(in thousands, except per unit amounts)
Net income
 
 
 
 
 
 
$
10,166

Distributions declared
$
24,998

 
$
22,358

 
$
1,742

 
$
49,098

Assumed net loss from operations after distributions
(20,562
)
 
(18,370
)
 
—

 
(38,932
)
Assumed net income to be allocated
$
4,436

 
$
3,988

 
$
1,742

 
$
10,166

Income per unit - basic
$
0.40

 
$
0.40

 
 
 
 
Income per unit - diluted
$
0.38

 
$
0.40

 
 
 
 
 
Year Ended December 31, 2015
 
Common
 
Subordinated
 
IDR
 
Total
 
(in thousands, except per unit amounts)
Net income
 
 
 
 
 
 
$
78,348

Distributions declared
$
21,826

 
$
19,943

 
$
321

 
$
42,090

Assumed net income from operations after distributions
18,863

 
17,395

 
—

 
36,258

Assumed net income to be allocated
$
40,689

 
$
37,338

 
$
321

 
$
78,348

Income per unit - basic
$
3.71

 
$
3.71

 
 
 
 
Income per unit - diluted
$
3.65

 
$
3.71

 
 
 
 

 
Year Ended December 31, 2014
 
Common
 
Subordinated
 
IDR
 
Total
 
(in thousands, except per unit amounts)
Net income
 
 
 
 
 
 
$
122,814

Income attributable to Kildair (Note 2)
 
 
 
 
 
 
(4,080
)
Limited partners' interest in net income
 
 
 
 
 
 
$
118,734

Distributions declared
$
17,964

 
$
17,526

 
$
—

 
$
35,490

Assumed net income from operations after distributions
41,579

 
41,665

 
—

 
83,244

Assumed net income to be allocated
$
59,543

 
$
59,191

 
$
—

 
$
118,734

Income per unit - basic
$
5.88

 
$
5.88

 
 
 
 
Income per unit - diluted
$
5.84

 
$
5.88