PARTNERS' EQUITY | PARTNERS' EQUITY Series A, B and C Preferred Units We allocate net income to our 8.50% Series A, 7.625% Series B and 9.00% Series C Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (collectively, the Series A, B and C Preferred Units) equal to the amount of distributions earned during the period. Distributions on our Series A, B and C Preferred Units are payable out of any legally available funds, accrue and are cumulative from the original issuance dates, and are payable on the 15th day (or next business day) of each of March, June, September and December of each year to holders of record on the first business day of each payment month. Information on our Series A, B and C Preferred Units is shown below: Units Units Issued and Outstanding as of March 31, 2023 Optional Redemption Date/Date When Distribution Rate Became Floating Floating Annual Rate (as a Percentage of the $25.00 Liquidation Preference per Unit) Series A Preferred Units 9,060,000 December 15, 2021 Three-month LIBOR plus 6.766% Series B Preferred Units 15,400,000 June 15, 2022 Three-month LIBOR plus 5.643% Series C Preferred Units 6,900,000 December 15, 2022 Three-month LIBOR plus 6.88% Distribution information on our Series A, B and C Preferred Units is as follows: Series A Preferred Units Series B Preferred Units Series C Preferred Units Distribution Period Distribution Rate per Unit Total Distribution Distribution Rate per Unit Total Distribution Distribution Rate per Unit Total Distribution (Thousands of Dollars) (Thousands of Dollars) (Thousands of Dollars) March 15, 2023 - June 14, 2023 $ 0.73169 $ 6,629 $ 0.66150 $ 10,187 $ 0.73881 $ 5,098 December 15, 2022 - March 14, 2023 $ 0.71889 $ 6,513 $ 0.64871 $ 9,990 $ 0.72602 $ 5,010 March 15, 2022 - June 14, 2022 $ 0.47817 $ 4,332 $ 0.47657 $ 7,339 $ 0.56250 $ 3,881 December 15, 2021 - March 14, 2022 $ 0.43606 $ 3,951 $ 0.47657 $ 7,339 $ 0.56250 $ 3,881 In April 2023, our board of directors declared distributions with respect to the Series A, B and C Preferred Units to be paid on June 15, 2023. Common Limited Partners We make quarterly distributions to common unitholders of 100% of our “Available Cash,” generally defined as cash receipts less cash disbursements, including distributions to our preferred units, 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 common unitholders receive a distribution each quarter as determined by the board of directors, subject to limitation by the distributions in arrears, if any, on our preferred units. In April 2023, our board of directors declared distributions with respect to our common units for the quarter ended March 31, 2023. The following table summarizes information about cash distributions to our common limited partners applicable to the period in which the distributions were earned: Quarter Ended Cash Distributions Total Cash Record Date Payment Date (Thousands of Dollars) March 31, 2023 $ 0.40 $ 44,396 May 8, 2023 May 12, 2023 December 31, 2022 $ 0.40 $ 44,328 February 8, 2023 February 14, 2023 Accumulated Other Comprehensive Income (Loss) (AOCI) The balance of and changes in the components included in AOCI were as follows: Three Months Ended March 31, 2023 2022 Foreign Currency Translation Cash Flow Hedges Pension and Other Postretirement Benefits Total Foreign Currency Translation Cash Flow Hedges Pension and Other Postretirement Benefits Total (Thousands of Dollars) Balance as of January 1 $ 62 $ (34,380) $ 2,713 $ (31,605) $ (41,761) $ (36,486) $ 4,269 $ (73,978) Other comprehensive income before reclassification adjustments 435 — — 435 829 — — 829 Net gain on pension costs reclassified into other income, net — — (737) (737) — — (420) (420) Net loss on cash flow hedges reclassified into interest expense, net — 515 — 515 — 529 — 529 Other — — (9) (9) — — (6) (6) Other comprehensive income (loss) 435 515 (746) 204 829 529 (426) 932 Balance as of March 31 $ 497 $ (33,865) $ 1,967 $ (31,401) $ (40,932) $ (35,957) $ 3,843 $ (73,046) As of March 31, 2023, we expect to reclassify a loss of $2.9 million to “Interest expense, net” within the next twelve months associated with unwound forward-starting interest rate swaps. |