NET INCOME PER COMMON UNIT

12 Months Ended

Dec. 31, 2014

NET INCOME PER COMMON UNIT

NET INCOME PER COMMON UNIT

NOTE 12    NET INCOME PER COMMON UNIT

Net income per common unit is computed by dividing net income attributable to controlling interests, after deduction of the General Partner's allocation and net income attributed to GTN's and Bison's former parent, by the weighted average number of common units outstanding. The General Partner's allocation is equal to an amount based upon the General Partner's effective two percent general partner interest, plus an amount equal to incentive distributions. Incentive distributions are paid to the General Partner if quarterly cash distributions on the common units exceed levels specified in the Partnership Agreement. In the year ended December 31, 2014, incentive distributions allocated to the General Partner were $1 million. No incentive distributions were allocated to the General Partner in the years ended December 31, 2013 and 2012.

Net income per common unit was determined as follows:

(millions of dollars, except per common unit amounts)	2014	2013(a)		2012(a)
Net income attributable to controlling interests	172	155		192
Net income attributed to GTN's and Bison's former parent(b)	–	(26	)	(55	)
Net income allocated to controlling interests(b)	172	129		137
Net income allocated to General Partner, including incentive distribution rights (IDRs)(c)	4	3		3
Net income allocable to common units	168	126		134
Weighted average common units outstanding (millions) – basic and diluted	62.7	58.9		53.5
Net income per common unit – basic and diluted	$ 2.67	$ 2.13		$ 2.51

(a)	Recast as discussed in Note 2 and Note 6.
(b)	Net income allocated to controlling interests excludes net income attributed to GTN's and Bison's former parent as it was allocated to TransCanada and was not allocable to either the general partner or common units.
(c)	In the calculation of basic and diluted net income per common unit, the net income allocated to the General Partner includes IDRs pertaining to the current reporting period, but declared and paid in the subsequent period.