Equity-Based Compensation (Notes)

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

12. Equity-Based Compensation

Our General Partner's board of directors adopted the LTIP for the benefit of employees, consultants and non-employee directors of our General Partner and its affiliates. Awards granted under the LTIP vest over a scheduled vesting period and their market value at the date of the grant is amortized over the restricted period on a straight-line basis.

At September 30, 2016, there were 4,098,368 phantom units reserved for future grants under the LTIP.

The fair value of the phantom units is determined based on the closing price of WNRL common units on the grant date. The estimated fair value of the phantom units is amortized on a straight-line basis over the scheduled vesting periods of individual awards. We incurred unit-based compensation expense of $0.7 million, $2.0 million, $0.6 million and $1.5 million for the three and nine months ended September 30, 2016 and 2015, respectively.

The aggregate grant date fair value of nonvested phantom units outstanding as of September 30, 2016, was $7.5 million. The aggregate intrinsic value of such phantom units was $6.6 million. Total unrecognized compensation cost related to our non-vested phantom units totaled $6.2 million at September 30, 2016, which we expect to recognize over a weighted-average period of approximately 2.6 years.

A summary of our unit award activity for the nine months ended September 30, 2016, is set forth below:

	Number of Phantom Units		Weighted-Average Grant Date Fair Value
Not vested at December 31, 2015	279,787		$	28.06
Awards granted	101,955		22.69
Awards vested	(86,406	)	25.80
Awards forfeited	(10,181	)	31.87
Not vested at September 30, 2016	285,155		26.42