PARTNERS’ EQUITY

The following table summarizes changes to our partners’ equity (in thousands of dollars):



Balance as of December 31, 2015	$	1,609,844
Net income	57,401
Unit-based compensation	3,236
Other comprehensive loss	(14,778		)
Cash distributions to partners	(98,051		)
Balance as of March 31, 2016	$	1,557,652

Accumulated Other Comprehensive Loss

The balance of and changes in the components included in AOCI were as follows:



	Foreign Currency Translation			Cash Flow Hedges			Pension and Other Postretirement Benefits			Total
	(Thousands of Dollars)
Balance as of January 1, 2016	$	(60,826	)	$	(27,968	)	$	—		$	(88,794	)
Other comprehensive income (loss):
Employee Transfer	—			—			4,201			4,201
Other comprehensive income (loss) before reclassification adjustments	8,938			(29,978		)	—			(21,040		)
Net gain on pension costs reclassified into operating expense	—			—			(120		)	(120		)
Net gain on pension costs reclassified into general and administrative expense	—			—			(41		)	(41		)
Net loss on cash flow hedges reclassified into interest expense, net	—			2,222			—			2,222
Other comprehensive income (loss)	8,938			(27,756		)	4,040			(14,778		)
Balance as of March 31, 2016	$	(51,888	)	$	(55,724	)	$	4,040		$	(103,572	)

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 limited partner 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 March 31,
	2016			2015
	(Thousands of Dollars)
Net income applicable to general partner and limited partners’ interest	$	57,401		$	127,899
Less general partner incentive distribution	10,805			10,805
Net income after general partner incentive distribution	46,596			117,094
General partner interest	2		%	2		%
General partner allocation of net income after general partner incentive distribution	932			2,342
General partner incentive distribution	10,805			10,805
Net income applicable to general partner	$	11,737		$	13,147

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 March 31,
	2016		2015
	(Thousands of Dollars, Except Per Unit Data)
General partner interest	$	1,961	$	1,961
General partner incentive distribution	10,805		10,805
Total general partner distribution	12,766		12,766
Limited partners’ distribution	85,285		85,285
Total cash distributions	$	98,051	$	98,051

Cash distributions per unit applicable to limited partners	$	1.095	$	1.095

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)
March 31, 2016 (a)	$	1.095	$	98,051	May 9, 2016	May 13, 2016
December 31, 2015	$	1.095	$	98,051	February 8, 2016	February 12, 2016


(a)	The distribution was announced on April 27, 2016.