PARTNERS’ EQUITY

Accumulated Other Comprehensive Income (Loss)

The balance of and changes in the components included in “Accumulated other comprehensive income (loss)” were as follows:



	Foreign Currency Translation			Cash Flow Hedges			Total
	(Thousands of Dollars)
Balance as of January 1, 2013	$	5,654		$	(64,519	)	$	(58,865	)
Other comprehensive (loss) income before reclassifications	(19,312		)	7,213			(12,099		)
Net loss reclassified into interest expense, net	—			7,570			7,570
Other comprehensive (loss) income	(19,312		)	14,783			(4,529		)
Balance as of December 31, 2013	(13,658		)	(49,736		)	(63,394		)
Other comprehensive loss before reclassifications	(15,181		)	—			(15,181		)
Net loss reclassified into interest expense, net	—			10,663			10,663
Other comprehensive (loss) income	(15,181		)	10,663			(4,518		)
Balance as of December 31, 2014	(28,839		)	(39,073		)	(67,912		)
Other comprehensive (loss) income before reclassifications	(31,987		)	1,303			(30,684		)
Net loss reclassified into interest expense, net	—			9,802			9,802
Other comprehensive (loss) income	(31,987		)	11,105			(20,882		)
Balance as of December 31, 2015	$	(60,826	)	$	(27,968	)	$	(88,794	)

Allocations of Net Income

General Partner. 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 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:



	Year Ended December 31,
	2015			2014			2013
	(Thousands of Dollars)
Net income (loss) attributable to NuStar Energy L.P.	$	306,720		$	210,773		$	(273,770	)
Less general partner incentive distribution	43,220			43,220			43,220
Net income (loss) after general partner incentive distribution	263,500			167,553			(316,990		)
General partner interest	2		%	2		%	2		%
General partner allocation of net income (loss) after general partner incentive distribution	5,270			3,352			(6,338		)
General partner incentive distribution	43,220			43,220			43,220
Net income applicable to general partner	$	48,490		$	46,572		$	36,882

Cash Distributions

We make quarterly distributions of 100% of our available cash, generally defined as cash receipts less cash disbursements and cash reserves established by the general partner, in its sole discretion. These quarterly distributions are declared and paid within 45 days subsequent to each quarter-end. The limited partner unitholders are entitled to receive a minimum quarterly distribution of $0.60 per unit each quarter ($2.40 annualized). Our cash is first distributed 98% to the limited partners and 2% to the general partner until the amount distributed to our unitholders is equal to the minimum quarterly distribution and arrearages in the payment of the minimum quarterly distribution for any prior quarter. Cash in excess of the minimum quarterly distributions is distributed to our unitholders and our general partner based on the percentages shown below.

Our general partner is entitled to incentive distributions if the amount we distribute with respect to any quarter exceeds specified target levels shown below:



	Percentage of Distribution
Quarterly Distribution Amount per Unit	Unitholders	General Partner
Up to $0.60	98%	2%
Above $0.60 up to $0.66	90%	10%
Above $0.66	75%	25%

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:



	Year Ended December 31,
	2015		2014		2013
	(Thousands of Dollars, Except Per Unit Data)
General partner interest	$	7,844	$	7,844	$	7,844
General partner incentive distribution	43,220		43,220		43,220
Total general partner distribution	51,064		51,064		51,064
Limited partners’ distribution	341,140		341,140		341,140
Total cash distributions	$	392,204	$	392,204	$	392,204

Cash distributions per unit applicable to limited partners	$	4.380	$	4.380	$	4.380

The following table summarizes information related to our quarterly cash distributions:



Quarter Ended	Cash Distributions Per Unit		Total Cash Distributions		Record Date	Payment Date
			(Thousands of Dollars)
December 31, 2015 (a)	$	1.095	$	98,051	February 8, 2016	February 12, 2016
September 30, 2015	$	1.095	$	98,051	November 9, 2015	November 13, 2015
June 30, 2015	$	1.095	$	98,051	August 7, 2015	August 13, 2015
March 31, 2015	$	1.095	$	98,051	May 8, 2015	May 14, 2015


(a)	The distribution was announced on January 29, 2016.