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Other Comprehensive Income (OCI) and Fair Value Measurements
 6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Other Comprehensive Income (OCI) and Fair Value Measurements Other Comprehensive Income (OCI) and Fair Value Measurements

OCI
    
The Partnership had no outstanding derivatives at June 30, 2017, and December 31, 2016, but had $6.2 million and $6.0 million of Accumulated other comprehensive income (loss) (AOCI) related to cash flow hedges as of June 30, 2017, and December 31, 2016, which relate to settled treasury rate locks that are being amortized to earnings over the terms of the related interest payments, generally the terms of the related debt. The Partnership estimates that approximately $2.0 million of net losses from cash flow hedges reported in AOCI as of June 30, 2017, are expected to be reclassified into earnings within the next twelve months.

The following table shows the components and reclassifications to net income of AOCI which is included in Partners' Capital on the Condensed Consolidated Balance Sheets for the three months ended June 30, 2017 (in millions):
 
Cash Flow Hedges
 
Pension and
Other
 Postretirement Costs
 
Total
Beginning balance, April 1, 2017
$
(6.8
)
 
$
(73.8
)
 
$
(80.6
)
Reclassifications:
 
 
 
 
 
 
 
 
Interest expense
 
0.6

 
 
—

 
 
0.6

Pension and other postretirement benefit costs
 
—

 
 
0.4

 
 
0.4

 
 
 
 
 
 
 
 
 
Ending balance, June 30, 2017
$
(6.2
)
 
$
(73.4
)
 
$
(79.6
)

The following table shows the components and reclassifications to net income of AOCI which is included in Partners' Capital on the Condensed Consolidated Balance Sheets for the three months ended June 30, 2016 (in millions):
 
Cash Flow Hedges
 
Pension and
Other
 Postretirement Costs
 
Total
Beginning balance, April 1, 2016
$
(7.8
)
 
$
(75.3
)
 
$
(83.1
)
Reclassifications:
 
 
 
 
 
 
 
 
Interest expense
 
0.6

 
 
—

 
 
0.6

Pension and other postretirement benefit costs
 
—

 
 
1.1

 
 
1.1

 
 
 
 
 
 
 
 
 
Ending balance, June 30, 2016
$
(7.2
)
 
$
(74.2
)
 
$
(81.4
)
    
The following table shows the components and reclassifications to net income of AOCI which is included in Partners' Capital on the Condensed Consolidated Balance Sheets for the six months ended June 30, 2017 (in millions):
 
Cash Flow Hedges
 
Pension and
Other
 Postretirement Costs
 
Total
Beginning balance, January 1, 2017
$
(6.0
)
 
$
(74.1
)
 
$
(80.1
)
Loss recorded in AOCI
 
(1.5
)
 
 
—

 
 
(1.5
)
Reclassifications:
 
 
 
 
 
 
 
 
Interest expense
 
1.3

 
 
—

 
 
1.3

Pension and other postretirement benefit costs
 
—

 
 
0.7

 
 
0.7

 
 
 
 
 
 
 
 
 
Ending balance, June 30, 2017
$
(6.2
)
 
$
(73.4
)
 
$
(79.6
)

The following table shows the components and reclassifications to net income of AOCI which is included in Partners' Capital on the Condensed Consolidated Balance Sheets for the six months ended June 30, 2016 (in millions):
 
Cash Flow Hedges
 
Pension and
Other
 Postretirement Costs
 
Total
Beginning balance, January 1, 2016
$
(8.4
)
 
$
(75.9
)
 
$
(84.3
)
Reclassifications:
 
 
 
 
 
 
 
 
Interest expense
 
1.2

 
 
—

 
 
1.2

Pension and other postretirement benefit costs
 
—

 
 
1.7

 
 
1.7

 
 
 
 
 
 
 
 
 
Ending balance, June 30, 2016
$
(7.2
)
 
$
(74.2
)
 
$
(81.4
)

    
Financial Assets and Liabilities

The following methods and assumptions were used in estimating the fair value amounts included in the disclosures for financial assets and liabilities, which are consistent with those disclosed in the 2016 Annual Report on Form 10-K:

Cash and Cash Equivalents: For cash and short-term financial assets, the carrying amount is a reasonable estimate of fair value due to the short maturity of those instruments.

Long-Term Debt: The estimated fair value of the Partnership's publicly traded debt is based on quoted market prices at June 30, 2017, and December 31, 2016. The fair market value of the debt that is not publicly traded is based on market prices of similar debt at June 30, 2017, and December 31, 2016. The Partnership had no variable-rate debt outstanding as of June 30, 2017. The carrying amount of the Partnership's variable-rate debt at December 31, 2016, approximated fair value.
    
The carrying amounts and estimated fair values of the Partnership's financial assets and liabilities which were not recorded at fair value on the Condensed Consolidated Balance Sheets as of June 30, 2017, and December 31, 2016, were as follows (in millions):
As of June 30, 2017
 
 
 
 
Estimated Fair Value
Financial Assets
 
Carrying Amount
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
 
$
77.3

 
 
$
77.3

 
$
—

 
$
—

 
$
77.3

 
 
 
 
 
 
 
 
 
 
 
 
Financial Liabilities
 
 

 
 
 

 
 

 
 

 
 

Long-term debt
 
$
3,575.8

(1) 
 
$
—

 
$
3,777.2

 
$
—

 
$
3,777.2


(1) The carrying amount of long-term debt excludes an $8.4 million long-term capital lease obligation and
$9.7 million of unamortized debt issuance costs.

As of December 31, 2016
 
 
 
 
Estimated Fair Value
Financial Assets
 
Carrying Amount
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
 
$
4.6

 
 
$
4.6

 
$
—

 
$
—

 
$
4.6

 
 
 
 
 
 
 
 
 
 
 
 
Financial Liabilities
 
 

 
 
 
 
 
 
 
 
 
Long-term debt
 
$
3,558.9

(1) 
 
$
—

 
$
3,709.2

 
$
—

 
$
3,709.2


(1) The carrying amount of long-term debt excludes an $8.6 million long-term capital lease obligation and
$9.5 million of unamortized debt issuance costs.