Results of Operations

        Our results of operations consist of our share of earnings of the Partnership attributable to the i-units we own. At December 31, 2002, through our ownership of i-units, we owned an approximate 20.3% limited partner interest in the Partnership. We use the equity method of accounting for our investment in the Partnership, and we recorded earnings equal to approximately 20.3% of the Partnership's net income reduced by incentive income allocated to the General Partner. Our percentage ownership in the Partnership will change over time as the number of i-units we own becomes a different percentage of the total units outstanding due to our ownership of additional i-units and other issuances of additional common units by the Partnership. For the quarter and year ended December 31, 2002, the Partnership reported net income of $26.0 million and $78.1 million, respectively, and incentive income allocated to the General Partner of $3.5 million and $12.0 million, respectively. The information set forth under Part II, Item 7—Management's Discussion and Analysis of Financial Condition and Results of Operations, in the Partnership's 10-K is hereby incorporated by reference.

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        Our net income of $3.1 million represents equity in earnings attributable to the i-units that we own, reduced by deferred income tax expense. Deferred income tax expense is calculated based on the difference between the accounting and tax values of our investment in the Partnership and the federal income tax rate of 35% of our share of the earnings of the Partnership. Both basic and diluted earnings per share are calculated as our net income divided by our weighted-average number of outstanding shares during the period. There are no securities outstanding that may be converted into or exercised for shares.