According to Aplus's 2024 Franchise Disclosure Document, the company has issued phantom units to its employees and non-employee directors. These phantom units vest 60% after three years and the remaining 40% after five years. Even before vesting, these units have the right to receive distributions.

The fair value of these phantom units is determined by the market price of Aplus's common units on the date they are granted. This fair value is then amortized over the five-year vesting period. The method used for amortization is the straight-line method, meaning the cost is evenly distributed over the vesting period.

For the years ending December 31, 2023, 2022, and 2021, Aplus's consolidated statements of operations and comprehensive income included unit-based compensation expenses of $17 million, $14 million, and $16 million, respectively. The total fair value of phantom units vested during these years was $30 million, $22 million, and $20 million, respectively, based on the market price of SUN's common units as of each vesting date. As of December 31, 2023, the unrecognized compensation expenses related to unvested phantom units totaled $33 million, which Aplus expects to recognize over a weighted average period of 4 years. The fair value of unvested phantom units outstanding as of December 31, 2023, and 2022 totaled $96 million and $79 million, respectively.