XML 40 R13.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Net Income Per Unit | 12 Months Ended
--- | ---
Dec. 31, 2018
Earnings Per Share [Abstract] |
Net Income Per Unit | 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 2.0% 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, which are held by our general partner pursuant to our Partnership Agreement. The IDRs are paid following the close of each quarter. 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. As of December 31, 2018, 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. 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 that the requirements under the Partnership Agreement for the conversion of all subordinated units into common units were satisfied, the subordination period ended. As a result, in the first quarter of 2016, all 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 Partnership's net income was allocated to the general partner and the limited partners, including the holders of the subordinated units through February 24, 2016, in accordance with our Partnership Agreement. 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 date of distribution for the distributions earned during the period ended December 31, 2018 is February 12, 2019. The calculation of net income per unit is as follows (dollars in thousands, except per unit amounts):
|  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016
Net income attributable to partners |  | $ | 90,182 |  |  | $ | 69,409 |  |  | $ | 62,804 |
Less: General partner's distribution (including IDRs) (1) |  | 25,777 |  |  | 18,797 |  |  | 12,437 |
Less: Limited partners' distribution |  | 76,113 |  |  | 69,057 |  |  | 58,158 |
Less: Subordinated partner's distribution |  | — |  |  | — |  |  | 4,424 |
Distributions in excess of earnings |  | $ | (11,708 | ) |  | $ | (18,445 | ) |  | $ | (12,215 | )
General partner's earnings: |  |  |  |  |  |
Distributions (including IDRs) (1) |  | $ | 25,777 |  |  | $ | 18,797 |  |  | $ | 12,437 |
Allocation of distributions in excess of earnings |  | (234 | ) |  | (368 | ) |  | (244 | )
Total general partner's earnings |  | $ | 25,543 |  |  | $ | 18,429 |  |  | $ | 12,193 |
Limited partners' earnings on common units: |  |  |  |  |  |
Distributions |  | $ | 76,113 |  |  | $ | 69,057 |  |  | $ | 58,158 |
Allocation of distributions in excess of earnings |  | (11,474 | ) |  | (18,077 | ) |  | (11,489 | )
Total limited partners' earnings on common units |  | $ | 64,639 |  |  | $ | 50,980 |  |  | $ | 46,669 |
Limited partners' earnings on subordinated units: |  |  |  |  |  |
Distributions |  | $ | — |  |  | $ | — |  |  | $ | 4,424 |
Allocation of (distributions) earnings excess |  | — |  |  | — |  |  | (482 | )
Total limited partner's earnings on subordinated units |  | $ | — |  |  | $ | — |  |  | $ | 3,942 |
Weighted average limited partner units outstanding (2): |  |  |  |  |  |
Common units - (basic) |  | 24,390,286 |  |  | 24,348,063 |  |  | 22,490,264 |
Common units - (diluted) |  | 24,396,881 |  |  | 24,376,972 |  |  | 22,558,717 |
Subordinated units - Delek Holdings (basic and diluted) (3) |  | — |  |  | — |  |  | 1,803,167 |
Net income per limited partner unit (2): |  |  |  |  |  |
Common - (basic) |  | $ | 2.65 |  |  | $ | 2.09 |  |  | $ | 2.08 |
Common - (diluted) (4) |  | $ | 2.65 |  |  | $ | 2.09 |  |  | $ | 2.07 |
Subordinated - (basic and diluted) |  | $ | — |  |  | $ | — |  |  | $ | 2.19 |
(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. (2) We base our calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of the subordinated units to common units on February 25, 2016. (3) On February 25, 2016, all 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. Distributions and the Partnership's net income were allocated to the subordinated units through February 24, 2016. (4) Outstanding common unit equivalents totaling 1,776 and 4,240 were excluded from the diluted earnings per unit calculation for the years ended December 31, 2018 and 2016, respectively, as these common unit equivalents did not have a dilutive effect under the treasury stock method. There were no outstanding common unit equivalents excluded from the diluted earnings per unit calculation during the year ended December 31, 2017.

X
- References No definition available. + Details
Name: | us-gaap_EarningsPerShareAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for earnings per share. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 260 -URI http://asc.fasb.org/topic&trid=2144383 + Details
Name: | us-gaap_EarningsPerShareTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration