Equity | Equity We had 9,504,264 common limited partner units held by the public outstanding as of June 30, 2016 . Additionally, as of June 30, 2016 , Delek owned a 59.7% limited partner interest in us, consisting of 14,798,516 common limited partner units and a 95.1% interest in our general partner, which owns the entire 2.0% general partner interest consisting of 495,975 general partner units. Affiliates who are also members of our general partner's management and board of directors own the remaining 4.9% 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 from December 31, 2015 through June 30, 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 General partner units issued to maintain 2% interest — — — 530 530 Unit-based compensation awards 25,991 — — — 25,991 Subordinated unit conversion — 11,999,258 (11,999,258 ) — — Balance at June 30, 2016 9,504,264 14,798,516 — 495,975 24,798,755 The summarized changes in the carrying amount of our equity from December 31, 2015 through June 30, 2016 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 (11,591 ) (6,255 ) (11,503 ) (4,087 ) (33,436 ) Sponsor contribution of fixed assets — 597 — 12 609 Net income attributable to partners 11,449 13,906 3,942 5,044 34,341 Unit-based compensation 324 505 — (596 ) 233 Subordinated unit conversion — 71,040 (71,040 ) — — Other — — — 14 14 Balance at June 30, 2016 $ 198,583 $ (201,035 ) $ — $ (6,805 ) $ (9,257 ) 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 Net income attributable to partners $ 18,893 $ 18,311 $ 34,341 $ 32,951 Less: General partner's IDRs (2,462 ) (758 ) (4,446 ) (1,364 ) Net income available to partners $ 16,431 $ 17,553 $ 29,895 $ 31,587 General partner's ownership interest 2.0 % 2.0 % 2.0 % 2.0 % General partner's allocated interest in net income $ 329 $ 351 $ 598 $ 632 General partner's IDRs 2,462 758 4,446 1,364 Total general partner's interest in net income $ 2,791 $ 1,109 $ 5,044 $ 1,996 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 limited partner 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 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 May 5, 2016 June 30, 2016 $ 0.630 $ 2.52 $ 18,085 August 12, 2016 (1) August 5, 2016 (1) Expected date of distribution. The allocation of total quarterly cash distributions expected to be made on August 12, 2016 to general and limited partners for the three and six months ended June 30, 2016 and the allocation of total quarterly cash distributions for the three and six months ended June 30, 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 June 30, Six Months Ended June 30, 2016 2015 2016 2015 General partner's distributions: General partner's distributions $ 313 $ 272 $ 615 $ 534 General partner's IDRs 2,462 758 4,446 1,364 Total general partner's distributions 2,775 1,030 5,061 1,898 Limited partners' distributions: Common 15,310 6,738 25,695 13,213 Subordinated — 6,600 4,424 12,959 Total limited partners' distributions 15,310 13,338 30,119 26,172 Total cash distributions $ 18,085 $ 14,368 $ 35,180 $ 28,070 Cash distributions per limited partner unit $ 0.630 $ 0.550 $ 1.240 $ 1.080 |