Enterprise Products Partners L.P.

SEC Filings

10-K
ENTERPRISE PRODUCTS PARTNERS L P filed this Form 10-K on 02/28/2018
Entire Document
 

ENTERPRISE PRODUCTS PARTNERS L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 11.  Earnings Per Unit

Basic earnings per unit is computed by dividing net income or loss available to our common unitholders by the weighted-average number of our distribution-bearing units outstanding during a period, which excluded the Designated Units (see Note 9) to the extent such units did not participate in the distributions to be paid with respect to such period.

Diluted earnings per unit is computed by dividing net income or loss attributable to our limited partners by the sum of (i) the weighted-average number of our distribution-bearing units outstanding during a period (as used in determining basic earnings per unit), (ii) the weighted-average number of Designated Units outstanding during a period and (iii) the number of incremental common units resulting from the assumed exercise of dilutive unit options outstanding during a period (the “incremental option units”).

In a period of net losses, the Designated Units and incremental option units are excluded from the calculation of diluted earnings per unit due to their antidilutive effect.  The dilutive incremental option units are calculated using the treasury stock method, which assumes that proceeds from the exercise of all in-the-money options at the end of each period are used to repurchase common units at an average market price during the period.  The amount of common units remaining after the proceeds are exhausted represents the potentially dilutive effect of the securities.

The following table presents our calculation of basic and diluted earnings per unit for the periods indicated:

 
 
For the Year Ended December 31,
 
 
 
2017
   
2016
   
2015
 
BASIC EARNINGS PER UNIT
                 
Net income attributable to limited partners
 
$
2,799.3
   
$
2,513.1
   
$
2,521.2
 
Undistributed earnings allocated and cash payments on phantom unit awards (1)
   
(15.9
)
   
(12.9
)
   
(8.7
)
Net income available to common unitholders
 
$
2,783.4
   
$
2,500.2
   
$
2,512.5
 
 
                       
Basic weighted-average number of common units outstanding
   
2,145.0
     
2,081.4
     
1,966.6
 
 
                       
Basic earnings per unit
 
$
1.30
   
$
1.20
   
$
1.28
 
 
                       
DILUTED EARNINGS PER UNIT
                       
Net income attributable to limited partners
 
$
2,799.3
   
$
2,513.1
   
$
2,521.2
 
 
                       
Diluted weighted-average number of units outstanding:
                       
Distribution-bearing common units
   
2,145.0
     
2,081.4
     
1,966.6
 
Designated Units
   
--
     
--
     
26.5
 
Phantom units (1)
   
9.3
     
7.7
     
5.4
 
Incremental option units
   
--
     
--
     
0.1
 
Total
   
2,154.3
     
2,089.1
     
1,998.6
 
 
                       
Diluted earnings per unit
 
$
1.30
   
$
1.20
   
$
1.26
 
                         
(1)   Each phantom unit award includes a DER, which entitles the recipient to receive cash payments equal to the product of the number of phantom unit awards and the cash distribution per unit paid to our common unitholders. Cash payments made in connection with DERs are nonforfeitable. As a result, the phantom units are considered participating securities for purposes of computing basic earnings per unit.
 

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