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 $0.7 million, $0.6 million and $0.4 million of unit-based compensation expense related to the Partnership during the years ended December 31, 2017, 2016 and 2015, respectively. 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 market 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 one- to five-year service periods, unless such awards are amended in accordance with the LTIP. The total fair value of phantom units vested was $1.7 million, $1.7 million and $1.9 million during the years ended December 31, 2017, 2016 and 2015, respectively.

As of December 31, 2017, there was $0.4 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 0.7 years.

A summary of our unit award activity for the years ended December 31, 2017, 2016 and 2015, is set forth below:



		Number of Phantom Units		Weighted-Average Grant Price
Non-vested	December 31, 2014	215,464		$	23.48
Granted		11,836		$	39.73
Vested		(82,228	)	$	23.55
Non-vested	December 31, 2015	145,072		$	24.76
Granted		12,475		$	26.05
Vested		(69,094	)	$	24.66
Forfeited		(14,500	)	$	22.65
Non-vested	December 31, 2016	73,953		$	25.49
Granted		10,090		$	32.20
Vested		(68,079	)	$	24.60
Non-vested	December 31, 2017	15,964		$	33.54