NET INCOME PER COMMON UNIT

9 Months Ended

Sep. 30, 2019

NET INCOME PER COMMON UNIT

NET INCOME PER COMMON UNIT

NOTE 9     NET INCOME PER COMMON UNIT

Net income per common unit is computed by dividing net income attributable to controlling interests, after deduction of amounts attributable to the General Partner and Class B units, by the weighted average number of common units outstanding.

The amount allocable to the General Partner equals an amount based upon the General Partner’s 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.

The amount allocable to the Class B units in 2019 will equal 30 percent of GTN’s distributable cash flow during the year ending December 31, 2019 less $20 million and is further reduced by the estimated Class B Reduction for 2019 (December 31, 2018-$20 million less Class B Reduction). During the three and nine months ended September 30, 2019 $1 million was allocated to the Class B units (September 30, 2018 - $4 million).

Net income per common unit was determined as follows:

(unaudited)	Three months ended September 30,				Nine months ended September 30,
(millions of dollars, except per common unit amounts)	2019		2018		2019		2018
Net income attributable to controlling interests		56		62		204		231
Net income attributable to the Class B units (a)		(1)		(4)		(1)		(4)
Net income attributable to the General Partner and common units		55		58		203		227
Net income attributable to the General Partner		(1)		(1)		(4)		(5)
Net income attributable to common units		54		57		199		222
Weighted average common units outstanding (millions) – basic and diluted		71.3		71.3		71.3		71.3
Net income per common unit – basic and diluted	$	0.76	$	0.79	$	2.79	$	3.11

^(a) During the nine months ended September 30, 2019, 30 percent of GTN’s total distributable cash flow was $25 million. After applying the $20 million annual threshold and the estimated Class B Reduction for 2019, $1 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, 2019. During the nine months ended September 30, 2018, 30 percent of GTN’s total distributable cash flow was $31 million. After applying the $20 million annual threshold and the estimated Class B Reduction for 2018, $1 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, 2018 (Refer to Note 8).