Net Income Per Limited Partner Unit (Tables)

3 Months Ended

Mar. 31, 2014

Net Income Per Limited Partner Unit

Computation of basic and diluted earnings per limited partner unit

The following table sets forth the computation of basic and diluted earnings per limited partner unit for the three months ended March 31, 2014 and 2013 (in millions, except per unit data):

	Three Months Ended March 31,
	2014			2013
Basic Net Income per Limited Partner Unit
Net income attributable to PAA	$	384		$	528
Less: General partner’s incentive distribution (1)	(110		)	(86		)
Less: General partner 2% ownership (1)	(6		)	(9		)
Net income available to limited partners	268			433
Less: Undistributed earnings allocated and distributions to participating securities (1)	(2		)	(3		)
Net income available to limited partners in accordance with application of the two-class method for MLPs	$	266		$	430
Basic weighted average number of limited partner units outstanding	360			336
Basic net income per limited partner unit	$	0.74		$	1.28
Diluted Net Income per Limited Partner Unit
Net income attributable to PAA	$	384		$	528
Less: General partner’s incentive distribution (1)	(110		)	(86		)
Less: General partner 2% ownership (1)	(6		)	(9		)
Net income available to limited partners	268			433
Less: Undistributed earnings allocated and distributions to participating securities (1)	(2		)	(1		)
Net income available to limited partners in accordance with application of the two-class method for MLPs	$	266		$	432
Basic weighted average number of limited partner units outstanding	360			336
Effect of dilutive securities: Weighted average LTIP units	3			3
Diluted weighted average number of limited partner units outstanding	363			339
Diluted net income per limited partner unit	$	0.73		$	1.27

(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

	Three Months Ended March 31,
	2014			2013
Basic net income per limited partner unit impact	$	(0.05	)	$	(0.34	)
Diluted net income per limited partner unit impact	$	(0.05	)	$	(0.34	)