Stock Based Compensation

3 Months Ended

Mar. 31, 2013

Stock Based Compensation

7.   In January 2013, the Partnership granted 30,200 restricted units pursuant to the management incentive compensation program. These restricted units vest ratably over four years with the grant date fair value equal to the market price on the date of grant. We recognized $333,000 and $147,000 of equity compensation expense in the first three months of 2013 and 2012, respectively, related to restricted units granted to management pursuant to this program. Simultaneous with the restricted unit grant to management, members of our Board of Directors received 6,000 restricted units in January 2013. Restricted units granted to directors are not part of the management incentive compensation program, but are included in the calculation of total equity compensation expense. These awards to directors vest 50% on the third anniversary and 50% on the fourth anniversary of the date of grant. Total equity compensation expense is recognized over the shorter of the vesting period or the period from the date of grant to the point of retirement eligibility. For the first three months of 2013 and 2012, total equity compensation expense related to grants to both management and the Board of Directors was $536,000 and $371,000, respectively.