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Net Income Per Limited Partner Unit
6 Months Ended
Jun. 30, 2013
Net Income Per Limited Partner Unit  
Net Income Per Limited Partner Unit

Note 3.                     Net Income Per Limited Partner Unit

 

Under the Partnership’s partnership agreement, for any quarterly period, the incentive distribution rights (“IDRs”) participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in the Partnership’s undistributed net income or losses.  Accordingly, the Partnership’s undistributed net income is assumed to be allocated to the common unitholders, or limited partners’ interest, and to the General Partner’s general partner interest.

 

At June 30, 2013 and December 31, 2012, common units outstanding as reported in the accompanying consolidated financial statements excluded 36,777 and 119,915 common units, respectively, held on behalf of the Partnership pursuant to its repurchase program.  These units are not deemed outstanding for purposes of calculating net income per limited partner unit (basic and diluted).

 

The following table provides a reconciliation of net income and the assumed allocation of net income to the limited partners’ interest for purposes of computing net income per limited partner unit for the three and six months ended June 30, 2013 and 2012 (in thousands, except per unit data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2013

 

 

Three Months Ended June 30, 2012

 

 

 

Total

 

Limited
Partner
Interest

 

General
Partner
Interest

 

IDRs

 

 

Total

 

Limited
Partner
Interest

 

General
Partner
Interest

 

IDRs

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Global Partners LP

 

$

8,694

 

$

7,898

 

$

796

 

$

 

 

$

18,515

 

$

18,206

 

$

309

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Declared distribution

 

$

16,975

 

$

16,116

 

$

135

 

$

724

 

 

$

14,781

 

$

14,401

 

$

121

 

$

259

 

Assumed allocation of undistributed net income

 

(8,281

)

(8,218

)

(63

)

 

 

3,734

 

3,805

 

(71

)

 

Assumed allocation of net income

 

$

8,694

 

$

7,898

 

$

72

 

$

724

 

 

$

18,515

 

$

18,206

 

$

50

 

$

259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average limited partner units outstanding

 

 

 

27,394

 

 

 

 

 

 

 

 

27,376

 

 

 

 

 

Dilutive effect of phantom units

 

 

 

97

 

 

 

 

 

 

 

 

173

 

 

 

 

 

Diluted weighted average limited partner units outstanding

 

 

 

27,491

 

 

 

 

 

 

 

 

27,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per limited partner unit

 

 

 

$

0.29

 

 

 

 

 

 

 

 

$

0.67

 

 

 

 

 

Diluted net income per limited partner unit

 

 

 

$

0.29

 

 

 

 

 

 

 

 

$

0.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2013

 

 

Six Months Ended June 30, 2012

 

 

 

Total

 

Limited
Partner
Interest

 

General
Partner
Interest

 

IDRs

 

 

Total

 

Limited
Partner
Interest

 

General
Partner
Interest

 

IDRs

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable
to Global Partners LP (1)

 

$

23,519

 

$

21,917

 

$

1,602

 

$

 

 

$

17,115

 

$

16,698

 

$

417

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Declared distribution

 

$

33,771

 

$

32,095

 

$

269

 

$

1,407

 

 

$

28,767

 

$

28,117

 

$

236

 

$

414

 

Adjustment to distribution in connection with the Alliance acquisition (2)

 

 

 

 

 

 

(1,929

)

(1,929

)

 

 

Adjusted declared distribution

 

33,771

 

32,095

 

269

 

1,407

 

 

26,838

 

26,188

 

236

 

414

 

Assumed allocation of undistributed net income

 

(10,252

)

(10,178

)

(74

)

 

 

(9,723

)

(9,490

)

(233

)

 

Assumed allocation of net income

 

$

23,519

 

$

21,917

 

$

195

 

$

1,407

 

 

$

17,115

 

$

16,698

 

$

3

 

$

414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average limited partner units outstanding

 

 

 

27,358

 

 

 

 

 

 

 

 

25,466

 

 

 

 

 

Dilutive effect of phantom units

 

 

 

96

 

 

 

 

 

 

 

 

172

 

 

 

 

 

Diluted weighted average limited partner units outstanding

 

 

 

27,454

 

 

 

 

 

 

 

 

25,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income per limited partner unit

 

 

 

$

0.80

 

 

 

 

 

 

 

 

$

0.66

 

 

 

 

 

Diluted net income per limited partner unit

 

 

 

$

0.80

 

 

 

 

 

 

 

 

$

0.65

 

 

 

 

 

 

(1)             Calculation includes the effect of the March 1, 2012 issuance of 5,850,000 common units in connection with the acquisition of Alliance.  As a result, the general partner interest was 0.83% for the six months ended June 30, 2013 and, based on a weighted average, 0.95% for the six months ended June 30, 2012.

(2)             In connection with the acquisition of Alliance on March 1, 2012 and the issuance of 5,850,000 common units, the Contribution Agreement provided that any declared distribution for the first quarter of 2012 reflect the seller’s actual period of ownership during that quarter.  The payment by the seller of $1.9 million reflects the timing of the transaction (March 1), the seller’s 31 days of actual unit ownership in the 91 days of the quarter and the net receipt by seller ($1.0 million) of a pro-rated portion of the quarterly cash distribution of $0.50 per unit paid on the issued 5,850,000 common units.

 

On April 24, 2013, the board of directors of the General Partner declared a quarterly cash distribution of $0.5825 per unit for the period from January 1, 2013 through March 31, 2013.  On July 23, 2013, the board of directors of the General Partner declared a quarterly cash distribution of $0.5875 per unit for the period from April 1, 2013 through June 30, 2013.  These declared cash distributions result in incentive distributions to the General Partner, as the holder of the IDRs, and enable the Partnership to exceed its second target level distribution with respect to such IDRs.  See Note 8, “Cash Distributions” for further information.