NET INCOME PER COMMON UNIT

3 Months Ended

Mar. 31, 2020

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 2020 will equal 30 percent of GTN’s distributable cash flow during the year ending December 31, 2020 less $20 million, the residual of which is further multiplied by 43.75 percent. This amount is further reduced by the estimated Class B Reduction for 2020, an approximately 35 percent reduction applied to the estimated annual Class B Distribution (December 31, 2019 - $20 million less Class B Reduction). During the three months ended March 31, 2020 and 2019, 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 March 31,
(millions of dollars, except per common unit amounts)	2020			2019
Net income attributable to controlling interests	88			93
Net income attributable to the General Partner	(2		)	(2		)
Net income attributable to common units	86			91
Weighted average common units outstanding (millions) — basic and diluted	71.3			71.3
Net income per common unit — basic and diluted		$1.21			$1.28