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Equity Based Compensation (Notes)
 12 Months Ended
Dec. 31, 2014
Equity Based Compensation [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Equity Based Compensation
The Delek Logistics GP, LLC 2012 Long-Term Incentive Plan (the "LTIP") was adopted by the Delek Logistics GP, LLC Board of Directors in connection with the completion of the Offering in November 2012. 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 consists of unit options, restricted units, phantom units, unit appreciation rights, distribution equivalent rights, other unit-based awards and unit awards. The LTIP limits the number of common units that may be delivered pursuant to awards under the plan to 612,207 units. The LTIP is administered by the Conflicts Committee of the Board of Directors of our general partner.
We incurred approximately $0.3 million and $0.5 million of unit-based compensation expense related to the Partnership during the years ended December 31, 2014 and 2013, respectively. We incurred a nominal amount of unit-based compensation expense during the year ended December 31, 2012. These amounts are included in general and administrative expenses in the accompanying consolidated statements of income and comprehensive income. The fair value of phantom unit awards under the LTIP is determined based on the closing price of our common limited partner 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 total fair value of phantom units vested was $1.6 million and $4.2 million during the years ended December 31, 2014 and 2013, respectively.
As of December 31, 2014, there was $0.9 million of total unrecognized compensation cost related to non-vested equity-based compensation arrangements, which is expected to be recognized over a weighted-average period of 2.7 years.
A summary of our unit award activity for the twelve months ended December 31, 2014 is set forth below:
 
 
Number of Phantom Units
 
Weighted-Average Grant Price
Non-vested
December 31, 2013
274,952

 
$
22.94

Granted
 
10,000

 
$
35.46

Vested
 
(69,488
)
 
$
23.08

Non-vested
December 31, 2014
215,464

 
$
23.48


Sponsor's Equity-Based Compensation
Certain employees supporting the DKL 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 denominated in shares 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 SAR awards, with the exception of the SARs granted to certain executive employees, which are valued under the Monte-Carlo simulation model. Restricted stock units 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 DKL 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 DKL Predecessor's employees for the year ended December 31, 2012. The DKL Predecessor recognized additional compensation expense related to equity-based compensation awards to related party employees of $0.5 million for the year ended December 31, 2012 for allocated related party services and an allocation of director and executive officer equity-based compensation.
As of December 31, 2012, there was no unrecognized compensation cost related to non-vested equity-based compensation arrangements for the DKL Predecessor's employees. Subsequent to the Offering, these costs are allocated to the Partnership as part of the administrative fee under the Second Omnibus Amendment (as defined in Note 18—Related Party Transactions).