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NET INCOME PER COMMON UNIT (Tables)
9 Months Ended
Sep. 30, 2016
NET INCOME PER COMMON UNIT  
Schedule of net income per common unit

 

 

 

 

Three months ended

 

Nine months ended

 

(unaudited)

 

September 30,

 

September 30,

 

(millions of dollars, except per common unit amounts)

 

2016

 

2015

 

2016

 

2015

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to controlling interests

 

58

 

49

 

185

 

150

 

Net income attributable to the General Partner

 

(2

)

(1

)

(4

)

(3

)

Incentive distributions allocated to the General Partner (a)

 

(2

)

(1

)

(5

)

(2

)

Net income attributable to the Class B units (b)

 

(11

)

(2

)

(12

)

(2

)

 

 

 

 

 

 

 

 

 

 

Net income allocated to common units

 

43

 

45

 

164

 

143

 

 

 

 

 

 

 

 

 

 

 

Weighted average common units outstanding (millions) — basic and diluted

 

66.1

(c)

64.0

 

65.3

(c)

63.8

 

Net income per common unit — basic and diluted

 

$

0.65

 

$

0.70

 

$

2.51

 

$

2.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

Under the terms of the Partnership Agreement, for any quarterly period, the participation of the incentive distribution rights (IDRs) is limited to the available cash distributions declared. Accordingly, incentive distributions allocated to the General Partner are based on the Partnership’s available cash during the current reporting period, but declared and paid in the subsequent reporting period.

 

(b)

As discussed in Note 7, the Class B units entitle TransCanada to a distribution which is an amount based on 30 percent of GTN’s distributions after achieving certain annual thresholds. The distribution will be payable in the first quarter with respect to the prior year’s distributions. Consistent with the application of Accounting Standards Codification (ASC) Topic 260 — “Earnings per share”, the Partnership allocates a portion of net income attributable to controlling interests to the Class B units in an amount equal to 30 percent of GTN’s total distributable cash flows during the year ending December 31, 2016 less the threshold level of $20 million (2015 - less 15 million). During the six months ended June 30, 2016, the threshold was exceeded and during the nine months ended September 30, 2016, 30 percent of GTN’s total distributable cash flow was $32 million. As a result, $12 million of net income attributable to controlling interests was allocated to the Class B units at September 30, 2016, of which $1 million and $11 million were allocated during the three months ended June 30, 2016 and September 30, 2016, respectively (Refer to Note 7). From April 1, 2015 to September 30, 2015, 30 percent of GTN’s total distributable cash flow was $17 million. As a result, $2 million of net income attributable to controlling interests was allocated to the Class B units for both the three and nine months ended September 30, 2015.

 

(c)

Includes the common units subject to rescission. These units are treated as outstanding for financial reporting purposes (Refer to Note 7).