Equity

We had 9,478,273 common limited partner units held by the public outstanding as of March 31, 2016. Additionally, as of March 31, 2016, Delek owned a 59.7% limited partner interest in us, consisting of 14,798,516 common limited partner units and 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.

Equity Activity

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 began participating pro rata with the other common units in distributions of available cash. The conversion did not impact the amount of the cash distribution paid or the total number of the Partnership's outstanding units representing limited partner interests.

The table below summarizes the changes in the number of units outstanding through March 31, 2016.



	Common - Public	Common - Delek	Subordinated		General Partner	Total
Balance at December 31, 2015	9,478,273	2,799,258	11,999,258		495,445	24,772,234
Subordinated unit conversion	—	11,999,258	(11,999,258	)	—	—
Balance at March 31, 2016	9,478,273	14,798,516	—		495,445	24,772,234

The summarized changes in the carrying amount of our equity are as follows (in thousands):



	Common - Public			Common - Delek			Subordinated - Delek			General Partner			Total
Balance at December 31, 2015	$	198,401		$	(280,828	)	$	78,601		$	(7,192	)	$	(11,018	)
Cash distributions	(5,592		)	(1,651		)	(7,080		)	(1,801		)	(16,124		)
Sponsor contribution of fixed assets	—			597			—			12			609
Net income attributable to partners	5,152			4,101			3,942			2,253			15,448
Unit-based compensation	157			244			—			(293		)	108
Subordinated unit conversion	—			75,463			(75,463		)	—			—
Balance at March 31, 2016	$	198,118		$	(202,074	)	$	—		$	(7,021	)	$	(10,977	)

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):



	Three Months Ended March 31,
	2016			2015
Net income attributable to partners	$	15,448		$	14,640
Less: General partner's IDRs	(1,984		)	(606		)
Net income available to partners	$	13,464		$	14,034
General partner's ownership interest	2.0		%	2.0		%
General partner's allocated interest in net income	$	269		$	281
General partner's IDRs	1,984			606
Total general partner's interest in net income	$	2,253		$	887

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 available 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
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
March 31, 2016	$	0.610	$	2.44	$	17,095	May 13, 2016 ⁽¹⁾	May 5, 2016

⁽¹⁾ Expected date of distribution.

The allocation of total quarterly cash distributions expected to be made on May 13, 2016 to general and limited partners for the three months ended March 31, 2016 and the allocation of total quarterly cash distributions made on May 14, 2015 to general and limited partners for the three months ended March 31, 2015 are set forth in the table below. Distributions earned with respect to a given period are declared subsequent to quarter end. Therefore, the table below presents total cash distributions applicable to the period in which the distributions are earned (in thousands, except per unit amounts):



	Three Months Ended March 31,
	2016		2015
General partner's distributions:
General partner's distributions	$	302	$	262
General partner's IDRs	1,984		606
Total general partner's distributions	2,286		868

Limited partners' distributions:
Common	10,385		6,475
Subordinated	4,424		6,359
Total limited partners' distributions	14,809		12,834
Total cash distributions	$	17,095	$	13,702

Cash distributions per limited partner unit	$	0.610	$	0.530