Equity

We had 9,478,273 common limited partner units held by the public outstanding as of December 31, 2015. Additionally, as of December 31, 2015, Delek owned a 59.7% limited partner interest in us, consisting of 2,799,258 common limited partner units and 11,999,258 subordinated limited partner units as well as a 95.4% interest in our general partner, which owns the entire 2.0% general partner interest consisting of 495,445 general partner units. Affiliates who are also members of our general partner's management and board of directors own the remaining 4.6% interest in our general partner.

The table below summarizes the changes in the number of units outstanding through December 31, 2015 (in units). There were no units outstanding prior to the Offering in November 2012.



	Common - Public	Common - Delek	Subordinated	General Partner	Total
Units issued in the Offering in November 2012	9,200,000	2,799,258	11,999,258	489,766	24,488,282
Balance at December 31, 2012	9,200,000	2,799,258	11,999,258	489,766	24,488,282
GP units issued to maintain 2% interest	—	—	—	3,127	3,127
Unit-based compensation awards ⁽¹⁾	153,240	—	—	—	153,240
Balance at December 31, 2013	9,353,240	2,799,258	11,999,258	492,893	24,644,649
GP units issued to maintain 2% interest	—	—	—	1,304	1,304
Unit-based compensation awards ⁽¹⁾	63,949	—	—	—	63,949
Balance at December 31, 2014	9,417,189	2,799,258	11,999,258	494,197	24,709,902
GP units issued to maintain 2% interest	—	—	—	1,248	1,248
Unit-based compensation awards ⁽¹⁾	61,084	—	—	—	61,084
Balance at December 31, 2015	9,478,273	2,799,258	11,999,258	495,445	24,772,234

⁽¹⁾ Unit-based compensation awards are presented net of 21,144, 5,539 and 31,083 units withheld for taxes as of December 31, 2015, 2014 and 2013, respectively.

Issuance of Additional Securities

Our partnership agreement authorizes us to issue an unlimited number of additional partnership securities for the consideration and on the terms and conditions determined by our general partner without the approval of the unitholders. Costs associated with the issuance of securities are allocated to all unitholders' capital accounts based on their ownership interest at the time of issuance.

Allocations of Net Income

Our partnership agreement contains provisions for the allocation of net income and loss to the unitholders and our general partner. For purposes of maintaining partner capital accounts, the partnership agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interest. Normal allocations according to percentage interests are made after giving effect to priority income allocations in an amount equal to incentive cash distributions allocated 100% to our general partner.

The following table presents the allocation of the general partner's interest in net income (in thousands, except percentage of ownership interest):



	Year Ended December 31,
	2015			2014			2013
Net income attributable to partners	$	66,848		$	71,997		$	47,830
Less: General partner's IDRs	(3,904		)	(945		)	—
Net income available to partners	$	62,944		$	71,052		$	47,830
General partner's ownership interest	2.0		%	2.0		%	2.0		%
General partner's allocated interest in net income	1,259			1,421			957
General partner's IDRs	3,904			945			—
Total general partner's interest in net income	$	5,163		$	2,366		$	957

Incentive Distribution Rights

The following table illustrates the percentage allocations of available cash from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under “Marginal Percentage Interest in Distributions” are the percentage interests of our general partner and our unitholders in any available cash from operating surplus that we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution per Unit Target Amount.” The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests set forth below for our general partner include its 2.0% general partner interest and assume that (i) our general partner has contributed any additional capital necessary to maintain its 2.0% general partner interest, (ii) our general partner has not transferred its IDRs, and (iii) there are no arrearages on common units.



		Target Quarterly Distribution per Unit		Marginal Percentage Interest in Distributions
		Target Amount		Unitholders		General Partner
Minimum Quarterly Distribution		$	0.37500	98.0	%	2.0	%
First Target Distribution	above	$	0.37500	98.0	%	2.0	%
	up to	$	0.43125
Second Target Distribution	above	$	0.43125	85.0	%	15.0	%
	up to	$	0.46875
Third Target Distribution	above	$	0.46875	75.0	%	25.0	%
	up to	$	0.56250
Thereafter	thereafter	$	0.56250	50.0	%	50.0	%

Cash distributions

Our partnership agreement sets forth the calculation to be used to determine the amount and priority of cash distributions that our common and subordinated unitholders and general partner will receive. Our distributions earned with respect to a given period are declared subsequent to quarter end. The table below summarizes the quarterly distributions related to our quarterly financial results:



Quarter Ended	Total Quarterly Distribution Per Limited Partner Unit		Total Quarterly Distribution Per Limited Partner Unit, Annualized		Total Cash Distribution, including IDRs (in thousands)		Date of Distribution	Unitholders Record Date
December 31, 2013	$	0.415	$	1.66	$	10,228	February 13, 2014	February 4, 2014
March 31, 2014	$	0.425	$	1.70	$	10,474	May 14, 2014	May 6, 2014
June 30, 2014	$	0.475	$	1.90	$	11,910	August 14, 2014	August 7, 2014
September 30, 2014	$	0.490	$	1.96	$	12,394	November 14, 2014	November 6, 2014
December 31, 2014	$	0.510	$	2.04	$	13,056	February 13, 2015	February 6, 2015
March 31, 2015	$	0.530	$	2.12	$	13,702	May 14, 2015	May 4, 2015
June 30, 2015	$	0.550	$	2.20	$	14,368	August 14, 2015	August 6, 2015
September 30, 2015	$	0.570	$	2.28	$	15,136	November 13, 2015	November 6, 2015
December 31, 2015	$	0.590	$	2.36	$	16,124	February 12, 2016	February 5, 2016

Following the February 12, 2016 payment of the cash distribution attributable to the fourth quarter of 2015, and confirmation by the board of directors of our general partner based on the recommendation of the conflicts committee, on February 25, 2016, the requirements under the partnership agreement for the conversion of all subordinated units into common units were satisfied and the subordination period ended. As a result, in the first quarter of 2016, each of the Partnership's 11,999,258 outstanding subordinated units converted into common units and will participate pro rata with the other common units in distributions of available cash.

The allocation of total quarterly cash distributions made to general and limited partners for the years ended December 31, 2015, 2014 and 2013 is set forth in the table below. 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 (in thousands, except per unit amounts):



	Year Ended December 31,
	2015		2014		2013
General partner's distributions:
General partner's distributions	$	1,109	$	938	$	785
General partner's IDRs	3,904		945		—
Total general partner's distributions	5,013		1,883		785

Limited partners' distributions:
Common	27,439		23,152		19,292
Subordinated	26,878		22,799		19,199
Total limited partners' distributions	54,317		45,951		38,491
Total cash distributions	$	59,330	$	47,834	$	39,276

Cash distributions per limited partner unit	$	2.240	$	1.900	$	1.600