Equity-Based Compensation

9 Months Ended

Sep. 30, 2018

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

Equity-Based Compensation

Equity-Based Compensation

Delek US Holdings, Inc. 2006 and 2016 and Alon USA Energy, Inc. 2005 Long-Term Incentive Plans (the "Incentive Plans")

On May 8, 2018, the Company’s stockholders approved an amendment to the Delek US Holdings, Inc. 2016 Long-Term Incentive Plan that increased the number of shares of Common Stock available for issuance under this plan by 4,500,000 shares to 8,900,000 shares.

Compensation expense related to equity-based awards granted under the Incentive Plans amounted to $5.4 million ($4.3 million, net of taxes) and $15.6 million ($12.3 million, net of taxes) for the three and nine months ended September 30, 2018, respectively, and $4.1 million ($2.7 million, net of taxes) and $11.1 million ($7.2 million, net of taxes) for the three and nine months ended September 30, 2017, respectively. These amounts are included in general and administrative expenses in the accompanying condensed consolidated statements of income.

As of September 30, 2018, there was $50.3 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 3.1 years.

We issued 90,552 and 535,613 shares of common stock as a result of exercised or vested equity-based awards during the three and nine months ended September 30, 2018, respectively, and 57,149 and 257,602 during the three and nine months ended September 30, 2017, respectively. These amounts are net of 146,193 and 980,954 shares withheld to satisfy employee tax obligations related to the exercises and vestings during the three and nine months ended September 30, 2018, respectively, and 48,286 and 200,026 shares during the three and nine months ended September 30, 2017, respectively.

Delek Logistics GP, LLC 2012 Long-Term Incentive Plan

Compensation expense for Delek Logistics GP equity-based awards was $0.2 million ($0.2 million, net of taxes) and $0.5 million ($0.4 million, net of taxes) for the three and nine months ended September 30, 2018, respectively, and $0.4 million ($0.3 million, net of taxes) and $1.3 million ($0.8 million, net of taxes) for the three and nine months ended September 30, 2017, respectively. These amounts are included in general and administrative expenses in the accompanying condensed consolidated statements of income.

As of September 30, 2018, there was $0.4 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements, which is expected to be recognized over a weighted-average period of 0.6 years.