Note 11. Earnings Per Unit
The following table presents our calculation of basic and diluted earnings per common unit for the years indicated:
For the Year Ended December 31,
202520242023
BASIC EARNINGS PER COMMON UNIT
Net income attributable to common unitholders$5,810 $5,897 $5,529 
Earnings allocated to phantom unit awards (1)(55)(56)(50)
Net income allocated to common unitholders$5,755 $5,841 $5,479 
Basic weighted-average number of common units outstanding2,1662,1692,172
Basic earnings per common unit$2.66 $2.69 $2.52 
DILUTED EARNINGS PER COMMON UNIT
Net income attributable to common unitholders$5,810 $5,897 $5,529 
Net income attributable to preferred units
Net income attributable to limited partners$5,814 $5,901 $5,532 
Diluted weighted-average number of units outstanding:
Distribution-bearing common units2,1662,1692,172
Phantom units (2)202120
Preferred units (2)222
Total2,1882,1922,194
Diluted earnings per common unit$2.66 $2.69 $2.52 
(1)Phantom units are considered participating securities for purposes of computing basic earnings per unit. See Note 13 for information regarding phantom units.
(2)We use the “if-converted method” to determine the potential dilutive effect of the vesting of phantom unit awards and the conversion of preferred units outstanding. See Note 8 for information regarding preferred units.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 28, 2024
2022Feb 28, 2023

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.