Net Income Per Unit

We use the two-class method when calculating the net income per unit applicable to limited partners because we have more than one participating class of securities. Our participating securities consist of common units, subordinated units, general partner units and IDRs. The two-class method is based on the weighted-average number of common units outstanding during the period. Basic net income per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners’ interest in net income, after deducting our general partner’s 2% interest and IDRs by the weighted-average number of outstanding common and subordinated units. Our net income is allocated to our general partner and limited partners in accordance with their respective partnership percentages after giving effect to priority income allocations for IDRs to our general partner, which is the holder of the IDRs pursuant to our partnership agreement, which are declared and paid following the close of each quarter.

Net income per unit is only calculated for periods after the Offering as no units were outstanding prior to November 7, 2012. Earnings in excess of distributions are allocated to our general partner and limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit.

Diluted net income per unit applicable to common limited partners includes the effects of potentially dilutive units on our common units. At present, the only potentially dilutive units outstanding consist of unvested phantom units. Basic and diluted net income per unit applicable to subordinated limited partners are the same because there are no potentially dilutive subordinated units outstanding.

Our distributions earned with respect to a given period are declared subsequent to quarter end. Therefore, the table below represents total cash distributions applicable to the period in which the distributions are earned. The calculation of net income per unit is as follows (dollars in thousands, except per unit amounts):



	Year Ended December 31,
	2015		2014		2013
Net income attributable to partners	$	66,848	$	71,997	$	47,830
Less: General partner's distribution (including IDRs) ⁽¹⁾	5,013		1,883		785
Less: Limited partners' distribution	27,439		23,152		19,292
Less: Subordinated partner's distribution	26,878		22,799		19,199
Earnings in excess of distributions	$	7,518	$	24,163	$	8,554

General partner's earnings:
Distributions (including IDRs)⁽¹⁾	$	5,013	$	1,883	$	785
Allocation of earnings in excess of distributions	150		483		172
Total general partner's earnings	$	5,163	$	2,366	$	957

Limited partners' earnings on common units:
Distributions	$	27,439	$	23,152	$	19,292
Allocation of earnings in excess of distributions	3,721		11,933		4,198
Total limited partners' earnings on common units	$	31,160	$	35,085	$	23,490

Limited partners' earnings on subordinated units:
Distributions	$	26,878	$	22,799	$	19,199
Allocation of earnings in excess of distributions	3,647		11,747		4,184
Total limited partner's earnings on subordinated units	$	30,525	$	34,546	$	23,383

Weighted average limited partner units outstanding:
Common units - (basic)	12,237,154		12,171,548		12,025,249
Common units - (diluted)	12,356,914		12,302,629		12,148,774
Subordinated units - Delek (basic and diluted)	11,999,258		11,999,258		11,999,258

Net income per limited partner unit:
Common - (basic)	$	2.55	$	2.88	$	1.95
Common - (diluted)	$	2.52	$	2.85	$	1.93
Subordinated - (basic and diluted)	$	2.54	$	2.88	$	1.95


⁽¹⁾	General partner distributions (including IDRs) consist of the 2% general partner interest and IDRs, which represent the right of the general partner to receive increasing percentages of quarterly distributions of available cash from operating surplus in excess of $0.43125 per unit per quarter. See Note 12 for further discussion related to IDRs.