For the three months ended December 31, 2016, net income attributable to controlling interests and EBITDA increased by $197 million and $198 million, respectively compared to the same period in 2015 primarily due to the recognition of the $199 million non-cash impairment on our investment in Great Lakes in fourth quarter 2015.
For a reconciliation of these non-GAAP financial measures to GAAP measures, please see the tables captioned "Reconciliation of Net income to Distributable Cash Flow," "Reconciliation of Net income (loss) attributable to controlling interests to adjusted earnings" and "Reconciliation of Net income (loss) per common unit to adjusted earnings per common unit," included at the end of this release.
As a result, $22 million of net income attributable to controlling interests was allocated to the Class B units at December 31, 2016, of which $1 million, $11 million and $10 million was allocated during the three months ended June 30, 2016, September 30, 2016 and December 31, 2016 respectively.
Reconciliation of Net Income attributable to controlling interests
to Partnership Cash Flows
Partnership cash flows include net income attributable to controlling interests, less net income attributed to GTN's and Bison's former parent, plus operating cash flows from North Baja and Tuscarora, and cash distributions received from GTN, Northern Border, Great Lakes, and Bison, less equity earnings from unconsolidated affiliates and Consolidated Subsidiaries' net income as previously reported, plus net income attributable to non-controlling interests from consolidated subsidiaries after the 2013 Acquisition, and net of distributions declared to the General Partner.
Net income allocated to controlling interests excludes net income attributed to GTN's and Bison's former parent as such amounts were not allocable to either the general partner or common units.
Net income allocated to controlling interests excludes net income attributed to GTN's and Bison's former parent as it was allocated to TransCanada and was not allocable to either the general partner or common units.
Economic net income (controlling interest) 195.6 170.1 410.9 339.1
As supplemental information, we provide non-GAAP performance measures of Adjusted EBITDA (controlling interest), Economic net income (controlling interest) and Economic earnings per share.
Adjusted EBITDA (controlling interest) represents our performance before our share of interest expense, income taxes, depreciation, amortization, impairments, and adjustments to our contingent payment arrangements.
Sales of shares of the subsidiary's stock while maintaining a controlling interest results in a realized gain or loss because transactions with non-controlling interests are regarded as transactions with outsiders, not with owners.
Consolidated net income is the remainder attributable only to the controlling interest. This is practice today.