NET INCOME (LOSS) PER COMMON UNIT (Tables)

12 Months Ended

Dec. 31, 2019

NET INCOME (LOSS) PER COMMON UNIT

Schedule of net income per common unit

(millions of dollars, except per common unit amounts)	2019		2018		2017
Net income (loss) attributable to controlling interests		280		(182)		252
Net income attributable to PNGTS' former parent (a)		—		—		(2)
Net income (loss) allocable to General Partner and Limited Partners		280		(182)		250
Incentive distributions attributable to the General Partner (b)		—		—		(12)
Net income attributable to the Class B units (c)		(8)		(13)		(15)
Net income (loss) allocable to the General Partner and common units		272		(195)		223
Net (income) loss allocable to the General Partner's two percent interest		(5)		4		(4)
Net income (loss) attributable to common units		267		(191)		219
Weighted average common units outstanding (millions) – basic and diluted		71.3		71.3		69.2
Net income (loss) per common unit – basic and diluted	$	3.74	$	(2.68)	$	3.16

(a) Net income allocable to General and Limited Partners excludes net income attributed to PNGTS’ former parent as it was allocated to TC Energy and was not allocable to either the general partner, common units or Class B units.

(b) Under the terms of the Partnership Agreement, for any quarterly period, the participation of the 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.

(c) As discussed in Note 11, the Class B units entitle TC Energy to a distribution which is an amount based on 30 percent of GTN’s distributions after exceeding certain annual thresholds and Class B Reduction. 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 allocated the Class B units distribution in an amount equal to 30 percent of GTN’s total distributable cash flows during the year ended December 31, 2019 less the threshold level of $20 million (2018 and 2017 - less $20 million) and less the Class B Reduction (2019 - $4 million, 2018 - $7 million. The Class B Reduction did not apply during 2017).