| PARTNERS' EQUITY |
PARTNERS’ EQUITY
Partners’ Equity Activity The following table summarizes changes in the carrying amount of equity attributable to NuStar Energy L.P. partners and noncontrolling interest: | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2014 | | Three Months Ended June 30, 2013 | | NuStar Energy L.P. Partners’ Equity | | Noncontrolling Interest | | Total Partners’ Equity | | NuStar Energy L.P. Partners’ Equity | | Noncontrolling Interest | | Total Partners’ Equity | | (Thousands of Dollars) | Beginning balance | $ | 1,842,378 |
| | $ | 1,106 |
| | $ | 1,843,484 |
| | $ | 2,497,017 |
| | $ | 12,163 |
| | $ | 2,509,180 |
| Net income (loss) | 55,514 |
| | (115 | ) | | 55,399 |
| | 33,086 |
| | (117 | ) | | 32,969 |
| Other comprehensive income (loss): | | | | | | | | | | | | Foreign currency translation adjustment | 5,858 |
| | (2 | ) | | 5,856 |
| | (7,820 | ) | | (912 | ) | | (8,732 | ) | Net unrealized gain on cash flow hedges | — |
| | — |
| | — |
| | 2,526 |
| | — |
| | 2,526 |
| Net loss on cash flow hedges reclassified into interest expense, net | 2,671 |
| | — |
| | 2,671 |
| | 2,475 |
| | — |
| | 2,475 |
| Total other comprehensive income (loss) | 8,529 |
| | (2 | ) | | 8,527 |
| | (2,819 | ) | | (912 | ) | | (3,731 | ) | Cash distributions to partners | (98,051 | ) | | — |
| | (98,051 | ) | | (98,051 | ) | | — |
| | (98,051 | ) | Other | — |
| | — |
| | — |
| | (101 | ) | | — |
| | (101 | ) | Ending balance | $ | 1,808,370 |
| | $ | 989 |
| | $ | 1,809,359 |
| | $ | 2,429,132 |
| | $ | 11,134 |
| | $ | 2,440,266 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2014 | | Six Months Ended June 30, 2013 | | NuStar Energy L.P. Partners’ Equity | | Noncontrolling Interest | | Total Partners’ Equity | | NuStar Energy L.P. Partners’ Equity | | Noncontrolling Interest | | Total Partners’ Equity | | (Thousands of Dollars) | Beginning balance | $ | 1,902,136 |
| | $ | 1,658 |
| | $ | 1,903,794 |
| | $ | 2,572,384 |
| | $ | 12,611 |
| | $ | 2,584,995 |
| Net income (loss) | 95,258 |
| | (222 | ) | | 95,036 |
| | 57,651 |
| | (278 | ) | | 57,373 |
| Other comprehensive income (loss): | | | | | | | | | | | | Foreign currency translation adjustment | 1,618 |
| | (447 | ) | | 1,171 |
| | (15,097 | ) | | (1,199 | ) | | (16,296 | ) | Net unrealized gain on cash flow hedges | — |
| | — |
| | — |
| | 7,213 |
| | — |
| | 7,213 |
| Net loss on cash flow hedges reclassified into interest expense, net | 5,437 |
| | — |
| | 5,437 |
| | 2,962 |
| | — |
| | 2,962 |
| Total other comprehensive income (loss) | 7,055 |
| | (447 | ) | | 6,608 |
| | (4,922 | ) | | (1,199 | ) | | (6,121 | ) | Cash distributions to partners | (196,102 | ) | | — |
| | (196,102 | ) | | (196,102 | ) | | — |
| | (196,102 | ) | Other | 23 |
| | — |
| | 23 |
| | 121 |
| | — |
| | 121 |
| Ending balance | $ | 1,808,370 |
| | $ | 989 |
| | $ | 1,809,359 |
| | $ | 2,429,132 |
| | $ | 11,134 |
| | $ | 2,440,266 |
|
Accumulated Other Comprehensive Income The balance of and changes in the components included in “Accumulated other comprehensive loss” were as follows: | | | | | | | | | | | | | | Foreign Currency Translation | | Cash Flow Hedges | | Total | | (Thousands of Dollars) | Balance as of January 1, 2014 | $ | (13,658 | ) | | $ | (49,736 | ) | | $ | (63,394 | ) | Activity | 1,618 |
| | 5,437 |
| | 7,055 |
| Balance as of June 30, 2014 | $ | (12,040 | ) | | $ | (44,299 | ) | | $ | (56,339 | ) |
Allocations of Net Income Our partnership agreement, as amended, sets forth the calculation to be used to determine the amount and priority of cash distributions that the common unitholders and the general partner will receive. The partnership agreement also contains provisions for the allocation of net income and loss 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 interests. Normal allocations according to percentage interests are made after giving effect to priority income allocations, if any, in an amount equal to incentive cash distributions allocated 100% to the general partner.
The following table details the calculation of net income applicable to the general partner: | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2014 | | 2013 | | 2014 | | 2013 | | (Thousands of Dollars) | Net income attributable to NuStar Energy L.P. | $ | 55,514 |
| | $ | 33,086 |
| | $ | 95,258 |
| | $ | 57,651 |
| Less general partner incentive distribution | 10,805 |
| | 10,805 |
| | 21,610 |
| | 21,610 |
| Net income after general partner incentive distribution | 44,709 |
| | 22,281 |
| | 73,648 |
| | 36,041 |
| General partner interest | 2 | % | | 2 | % | | 2 | % | | 2 | % | General partner allocation of net income after general partner incentive distribution | 894 |
| | 446 |
| | 1,473 |
| | 722 |
| General partner incentive distribution | 10,805 |
| | 10,805 |
| | 21,610 |
| | 21,610 |
| Net income applicable to general partner | $ | 11,699 |
| | $ | 11,251 |
| | $ | 23,083 |
| | $ | 22,332 |
|
Cash Distributions The following table reflects the allocation of total cash distributions to the general and limited partners applicable to the period in which the distributions were earned: | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2014 | | 2013 | | 2014 | | 2013 | | (Thousands of Dollars, Except Per Unit Data) | General partner interest | $ | 1,961 |
| | $ | 1,961 |
| | $ | 3,922 |
| | $ | 3,922 |
| General partner incentive distribution | 10,805 |
| | 10,805 |
| | 21,610 |
| | 21,610 |
| Total general partner distribution | 12,766 |
| | 12,766 |
| | 25,532 |
| | 25,532 |
| Limited partners’ distribution | 85,285 |
| | 85,285 |
| | 170,570 |
| | 170,570 |
| Total cash distributions | $ | 98,051 |
| | $ | 98,051 |
| | $ | 196,102 |
| | $ | 196,102 |
| | | | | | | | | Cash distributions per unit applicable to limited partners | $ | 1.095 |
| | $ | 1.095 |
| | $ | 2.190 |
| | $ | 2.190 |
|
The following table summarizes information related to our quarterly cash distributions: | | | | | | | | | | | | | | Quarter Ended | | Cash Distributions Per Unit | | Total Cash Distributions (Thousands of Dollars) | | Record Date | | Payment Date | June 30, 2014 (a) | | $ | 1.095 |
| | $ | 98,051 |
| | August 6, 2014 | | August 11, 2014 | March 31, 2014 | | $ | 1.095 |
| | $ | 98,051 |
| | May 7, 2014 | | May 12, 2014 | December 31, 2013 | | $ | 1.095 |
| | $ | 98,051 |
| | February 10, 2014 | | February 14, 2014 |
| | (a) | The distribution was announced on July 25, 2014. |
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