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Equity Based Compensation
 12 Months Ended
Dec. 31, 2012
Share-based Compensation [Abstract]  
Stock Based Compensation
Equity Based Compensation

The Delek Logistics GP, LLC 2012 Long-Term Incentive Plan (the "LTIP Plan") was adopted by the Delek Logistics GP, LLC Board of Directors in connection with the completion of the Offering. The LTIP provides for officers, directors and employees of our general partner or its affiliates, and any consultants, affiliates of our general partner or other individuals who perform services for us. The LTIP Plan consists of unit options, restricted units, phantom units, unit appreciation rights, distribution equivalent rights, other unit-based awards and unit awards. The LTIP Plan limits the number of common units that may be delivered pursuant to awards under the plan to 612,207 units. The LTIP Plan is administered by the Conflicts Committee of the Board of Directors of our general partner.
We incurred a nominal amount of unit-based compensation expense related to the Partnership as of December 31, 2012. During the year ended December 31, 2012, our general partner issued phantom unit awards with distribution equivalent rights to certain directors and employees under the LTIP Plan in connection with the completion of the Offering. The fair value of our phantom units is determined based on the closing price of our common units on the grant date. The estimated fair value of our phantom units is amortized over the vesting period using the straight line method. Awards vest over a five-year service period. The weighted-average grant date fair value of phantom units granted during the year ended December 31, 2012 was $22.65. A summary of our unit award activity for the twelve months ended December 31, 2012 is set forth below:

 
 
Number of Phantom Units
 
Weighted-Average Grant Price
Non-vested
December 31, 2011
—

 
—

Granted
 
494,883

 
$
22.65

Vested
 
—

 
—

Forfeited
 
—

 
—

Non-vested
December 31, 2012
494,883

 
$
22.65


Sponsor's Stock-Based Compensation
Certain employees supporting the Predecessor's operations received long-term incentive compensation that is part of the Delek US Holdings, Inc. 2006 Long-Term Incentive Plan, as amended (the “2006 Plan”). The 2006 Plan allows Delek to grant stock options, stock appreciation rights ("SARs"), restricted stock units and other stock-based awards of Delek's common stock to certain directors, officers, employees, consultants and other individuals who perform services for Delek or its affiliates, including these employees. Delek uses the Black-Scholes-Merton option-pricing model to determine the fair value of stock option and stock appreciation right awards, with the exception of the SARs granted to certain executive employees, which are valued under the Monte-Carlo simulation model. Restricted stock units (“RSUs”) are measured based on the fair market value of the underlying stock on the date of grant. Compensation expense related to stock-based awards is generally recognized with graded or cliff vesting on a straight-line basis over the vesting period.
Certain Delek employees supporting the Predecessor's operations were historically granted these types of awards. These costs were recorded as compensation expense and additional paid-in capital and totaled $0.1 million related to the Predecessor's employees for the years ended December 31, 2012, 2011 and 2010. The Predecessor recognized additional compensation expense related to equity-based compensation awards to related party employees of $0.5 million, $0.5 million, and $0.6 million for the years ended December 31, 2012, 2011 and 2010, respectively, for allocated related party services and an allocation of director and executive officer equity-based compensation.
Subsequent to the Offering, these costs are allocated to the Partnership as part of the administrative fee under the omnibus agreement.