Earnings Per Unit

9 Months Ended

Sep. 30, 2011

Note 14. Earnings Per Unit

As described below, the earnings per unit amounts presented in these consolidated financial statements have been retroactively adjusted to reflect the unit-for-unit exchange that occurred in connection with the Holdings Merger.

Basic and diluted earnings per unit amounts for periods prior to the Holdings Merger are based on net income attributable to partners divided by the weighted-average number of Holdings' units outstanding for the period multiplied by the merger exchange ratio of 1.5 Enterprise common units for each Holdings unit. Net income attributable to partners prior to the Holdings Merger represents the net income allocated to the former owners of Holdings, which excluded amounts allocated to noncontrolling interests. As described in Note 11, net income attributable to noncontrolling interests prior to the Holdings Merger included net income amounts allocated to Enterprise's limited partner interests that were owned by third parties and related parties other than Holdings.

Following the Holdings Merger, basic earnings per unit is computed by dividing net income or loss attributable to our limited partner interests by the weighted-average number of our distribution-bearing units outstanding during a period, which excludes the Designated Units (see Note 1) to the extent that such units do 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 partner interests 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 our Class B units (see Note 11) outstanding during a period, (iii) the weighted-average number of Designated Units outstanding during a period and (iv) 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 Class B units, 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 Three Months Ended September 30,				For the Nine Months Ended September 30,
	2011		2010		2011		2010
BASIC EARNINGS PER UNIT
Numerator:
Net income attributable to partners	$	471.4	$	37.0	$	1,325.8	$	161.0
General partner interest in net income		--		*		--		*
Net income attributable to limited partners	$	471.4	$	37.0	$	1,325.8	$	161.0
Denominator:
Common units		817.9		208.8		812.9		208.8
Time-vested restricted common units		4.0		--		4.1		--
Total		821.9		208.8		817.0		208.8
Basic earnings per unit:
Net income attributable to partners	$	0.57	$	0.18	$	1.62	$	0.77
General partner interest in net income		--		*		--		*
Net income attributable to limited partners	$	0.57	$	0.18	$	1.62	$	0.77
DILUTED EARNINGS PER UNIT
Numerator:
Net income attributable to partners	$	471.4	$	37.0	$	1,325.8	$	161.0
General partner interest in net income		--		*		--		*
Net income attributable to limited partners	$	471.4	$	37.0	$	1,325.8	$	161.0
Denominator:
Common units		817.9		208.8		812.9		208.8
Time-vested restricted common units		4.0		--		4.1		--
Class B units		4.5		--		4.5		--
Designated Units		30.6		--		30.6		--
Incremental option units		1.2		--		1.2		--
Total		858.2		208.8		853.3		208.8
Diluted earnings per unit:
Net income attributable to partners	$	0.55	$	0.18	$	1.55	$	0.77
General partner interest in net income		--		*		--		*
Net income attributable to limited partners	$	0.55	$	0.18	$	1.55	$	0.77

* Amount is negligible