NET INCOME PER COMMON UNIT

6 Months Ended

Jun. 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 equals 30 percent of GTN’s distributable cash flow during the year ended 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 six months ended June 30, 2019 and 2018, no amounts were allocated to the Class B units as the annual threshold was not exceeded.

Net income per common unit was determined as follows:

(unaudited)	Three months ended June 30,				Six months ended June 30,
(millions of dollars, except per common unit amounts)	2019		2018		2019		2018
Net income attributable to controlling interests		55		73		148		169
Net income attributable to the General Partner		(1)		(1)		(3)		(3)
Net income attributable to common units		54		72		145		166
Weighted average common units outstanding (millions) – basic and diluted		71.3		71.3		71.3		71.2
Net income per common unit – basic and diluted	$	0.75	$	1.00	$	2.03	$	2.33