Cash Distributions and Net Income Per Unit | 3. Cash Distributions and Net Income Per Unit Cash Distributions Our partnership agreement generally provides that we will make cash distributions, if any, each quarter according to the following percentage allocations: Total Quarterly Distribution Per Unit Target Amount Marginal Percentage Interest in Distributions Unitholders General Partner First Target Distribution up to $0.474375 98% 2% Second Target Distribution above $0.474375 up to $0.515625 85% 15% Third Target Distribution above $0.515625 up to $0.618750 75% 25% Thereafter above $0.618750 50% 50% Our distributions are declared subsequent to quarter end. The table below represents total cash distributions applicable to the period in which the distributions were earned: Earned in Quarter Ended Total Quarterly Distribution Per Unit Total Cash Distribution including general partners IDRs Date of Distribution Unitholders Record Date (Dollars in millions) March 31, 2017 $ 0.5940 $ 29.5 June 1, 2017 May 15, 2017 June 30, 2017 $ 0.5940 $ 29.5 September 1, 2017 August 15, 2017 September 30, 2017 $ 0.5940 $ 29.5 December 1, 2017 November 15, 2017 December 31, 2017 $ 0.5940 $ 29.5 March 1, 2018 February 15, 2018 March 31, 2018 (1) $ 0.4000 $ 18.9 June 1, 2018 May 15, 2018 (1) On April 26, 2018 , our Board of Directors declared a cash distribution of $0.40 per unit, which will be paid on June 1, 2018 , to unitholders of record on May 15, 2018 . Allocation of Net Income Our partnership agreement contains provisions for the allocation of net income to the unitholders and the general partner. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interest. Normal allocations according to percentage interests are made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions allocated 100 percent to the general partner. The calculation of net income allocated to the general and limited partners was as follows: Three Months Ended March 31, 2018 2017 (Dollars in millions) Net income (loss) attributable to SunCoke Energy L.P. $ 12.2 $ (129.3 ) General partner's incentive distribution rights — 1.4 Net income (loss) attributable to partners, excluding incentive distribution rights 12.2 (130.7 ) General partner's ownership interest: 2.0 % 2.0 % General partner's allocated interest in net income (loss) (1) 0.3 (2.7 ) General partner's incentive distribution rights — 1.4 Total general partner's interest in net income (loss) $ 0.3 $ (1.3 ) Common - public unitholder's interest in net income (loss) $ 4.6 $ (57.6 ) Common - SunCoke interest in net income (loss) 7.3 (70.4 ) Total limited partners' interest in net income (loss) $ 11.9 $ (128.0 ) (1) Our net income is allocated to the general partner and limited partners in accordance with their respective partnership percentages, after giving effect to priority income allocations for incentive distributions, if any, to our general partner, pursuant to our partnership agreement. The table above represents a simplified presentation of the calculation, and therefore, amounts may not recalculate precisely. Earnings Per Unit Our net income is allocated to the general partner and limited partners in accordance with their respective partnership percentages, after giving effect to priority income allocations for incentive distributions, if any, to our general partner, pursuant to our partnership agreement. Distributions less than or greater than earnings are allocated in accordance with our partnership agreement. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit. In addition to the common, we also have identified the general partner interest and IDRs as participating securities and we use the two-class method when calculating the net income per unit applicable to limited partners, which is based on the weighted-average number of common units outstanding during the period. Basic and diluted net income per unit applicable to limited partners are the same because we do not have any potentially dilutive units outstanding. The calculation of earnings per unit is as follows: Three Months Ended March 31, 2018 2017 (Dollars and units in millions, except per unit amounts) Net income (loss) attributable to SunCoke Energy L.P. $ 12.2 $ (129.3 ) General partner's distributions (including zero and $1.4 million, of cash incentive distribution rights declared, respectively) 0.4 2.0 Limited partners' distributions on common units 18.5 27.5 Distributions greater than earnings/loss (6.7 ) (158.8 ) General partner's earnings (loss): Distributions (including zero and $1.4 million, of cash incentive distribution rights declared, respectively) 0.4 2.0 Allocation of distributions greater than earnings/loss (0.1 ) (3.3 ) Total general partner's earnings (loss) 0.3 (1.3 ) Limited partners' earnings (loss) on common units: Distributions 18.5 27.5 Allocation of distributions greater than earnings/loss (6.6 ) (155.5 ) Total limited partners' earnings (loss) on common units 11.9 (128.0 ) Weighted average limited partner units outstanding: Common - basic and diluted 46.2 46.2 Net income (loss) per limited partner unit: Common - basic and diluted $ 0.26 $ (2.77 ) Unit Activity Unit activity for the three months ended March 31, 2018 : Common - Public Common - SunCoke Total Common At December 31, 2017 17,958,420 28,268,728 46,227,148 Common units acquired by SunCoke (188,465 ) 188,465 — At March 31, 2018 17,769,955 28,457,193 46,227,148 |