Net Income Per Limited Partner Unit (Tables)

12 Months Ended

Dec. 31, 2013

Net Income Per Limited Partner Unit

Computation of basic and diluted earnings per limited partner unit

	Year Ended December 31,
	2013			2012			2011
Basic Net Income per Limited Partner Unit
Net income attributable to PAA	$	1,361		$	1,094		$	966
General partner’s incentive distribution (1)	(375		)	(289		)	(221		)
General partner 2% ownership (1)	(19		)	(16		)	(15		)
Net income available to limited partners	967			789			730
Undistributed earnings allocated and distributions to participating securities (1)	(7		)	(5		)	—
Net income available to limited partners in accordance with application of the two-class method for MLPs	$	960		$	784		$	730
Basic weighted average number of limited partner units outstanding	341			325			297
Basic net income per limited partner unit	$	2.82		$	2.41		$	2.46
Diluted Net Income per Limited Partner Unit
Net income attributable to PAA	$	1,361		$	1,094		$	966
General partner’s incentive distribution (1)	(375		)	(289		)	(221		)
General partner 2% ownership (1)	(19		)	(16		)	(15		)
Net income available to limited partners	967			789			730
Undistributed earnings allocated and distributions to participating securities (1)	(6		)	(4		)	—
Net income available to limited partners in accordance with application of the two-class method for MLPs	$	961		$	785		$	730
Basic weighted average number of limited partner units outstanding	341			325			297
Effect of dilutive securities: Weighted average LTIP units	2			3			2
Diluted weighted average number of limited partner units outstanding	343			328			299
Diluted net income per limited partner unit	$	2.80		$	2.40		$	2.44

(1) We calculate net income available to limited partners based on the distributions pertaining to the current period’s net income.  After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners and participating securities in accordance with the contractual terms of the partnership agreement and as further prescribed under the two-class method.

Undistributed earnings allocation to IDRs impact on basic and diluted earnings per limited partner unit

	Year Ended December 31,
	2013			2012			2011
Basic net income per limited partner unit impact	$	(0.20	)	$	(0.11	)	$	(0.22	)
Diluted net income per limited partner unit impact	$	(0.20	)	$	(0.11	)	$	(0.21	)