Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) per Common Unit

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Net Income (Loss) per Common Unit
 9 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Net Income (Loss) per Common Unit NET INCOME (LOSS) PER COMMON UNIT
 
Net income (loss) per common unit for a given period is based on the distributions that will be made to the unitholders with respect to the period plus an allocation of undistributed net income (loss) based on provisions of the partnership agreement, divided by the weighted average number of common units outstanding. Distributions paid by us are presented on the Consolidated Statements of Partners’ Equity. On October 27, 2020, we declared a $0.650 distribution per common unit and the related distribution to our general partner and IDR holders to be paid on November 13, 2020 to unitholders of record as of November 6, 2020 for the period from July 1, 2020 to September 30, 2020.

The two-class method dictates that net income (loss) for a period be reduced by the amount of available cash that will be distributed with respect to that period and that any residual amount representing undistributed net income to be allocated to common unitholders and other participating unitholders to the extent that each unit may share in net income as if all of the net income for the period had been distributed in accordance with the partnership agreement. Undistributed income is allocated to participating securities based on the distribution waterfall for available cash specified in the partnership agreement. Undistributed losses (including those resulting from distributions in excess of net income) are allocated to common units and other participating securities on a pro rata basis based on provisions of the partnership agreement. Distributions are treated as distributed earnings in the computation of earnings per common unit even though cash distributions are not necessarily derived from current or prior period earnings.

The following table provides a reconciliation of net income (loss) and the allocation of net income (loss) to the common units, the subordinated units, the general partner units and IDRs for purposes of computing basic and diluted net income (loss) per unit (in millions, except per unit data).
  Limited Partner Units
  Total Common Units Subordinated Units General Partner Units IDR
Three Months Ended September 30, 2020
Net loss $ (67)
Declared distributions 346  315  —  6  25 
Assumed allocation of undistributed net loss (1) $ (413) (347) (58) (8) — 
Assumed allocation of net loss $ (32) $ (58) $ (2) $ 25 
Weighted average units outstanding 414.8  69.2 
Basic and diluted net loss per unit $ (0.08) $ (0.84)
Three Months Ended September 30, 2019
Net income $ 110 
Declared distributions 323  217  84  6  16 
Assumed allocation of undistributed net loss (1) $ (213) (151) (58) (4) — 
Assumed allocation of net income $ 66  $ 26  $ 2  $ 16 
Weighted average units outstanding 348.6  135.4 
Basic and diluted net income per unit $ 0.19  $ 0.19 
Nine Months Ended September 30, 2020
Net income $ 774 
Declared distributions 1,024  763  174  20  67 
Assumed allocation of undistributed net loss (1) $ (250) (188) (57) (5) — 
Assumed allocation of net income $ 575  $ 117  $ 15  $ 67 
Weighted average units outstanding 370.9  113.1 
Basic and diluted net income per unit $ 1.55  $ 1.03 
Nine Months Ended September 30, 2019
Net income $ 727 
Declared distributions 949  638  248  19  44 
Assumed allocation of undistributed net loss (1) $ (222) (157) (61) (4) — 
Assumed allocation of net income $ 481  $ 187  $ 15  $ 44 
Weighted average units outstanding 348.6  135.4 
Basic and diluted net income per unit $ 1.38  $ 1.38 
(1)Under our partnership agreement, the IDRs participate in net income only to the extent of the amount of cash distributions actually declared, thereby excluding the IDRs from participating in undistributed net income.