Acquisitions (Notes)

9 Months Ended

Sep. 30, 2016

Acquisitions [Abstract]

Acquisitions

Acquisitions

Acquisitions from Delek

During the nine-month period ended September 30, 2015, the Partnership acquired the assets listed below from Delek:

• the El Dorado Assets, effective March 31, 2015, for approximately $42.5 million in cash financed with borrowings under the Partnership's amended and restated senior secured revolving credit facility; and

• the Tyler Assets, effective March 31, 2015, for approximately $19.4 million in cash financed with borrowings under the Partnership's amended and restated senior secured revolving credit facility.

Financial Results of the El Dorado Assets and the Tyler Assets

The acquisitions of the El Dorado Assets and the Tyler Assets were considered transfers of businesses between entities under common control. Accordingly, the El Dorado Rail Offloading Racks Acquisition and the Tyler Crude Tank Acquisition were recorded at amounts based on Delek's historical carrying values as of the acquisition date, which were $7.6 million and $11.6 million as of March 31, 2015, respectively. Our historical financial statements have been retrospectively adjusted to reflect the results of operations, financial position, cash flows and equity attributable to the El Dorado Assets and the Tyler Assets, as if we owned the assets for the three-month period ended March 31, 2015. The results of the El Dorado Assets and the Tyler Assets are included in our pipelines and transportation segment.

The table below presents our results of operations, the effect of including the results of the El Dorado Assets and the Tyler Assets, and the adjusted total amounts included in our consolidated financial statements for the nine months ended September 30, 2015.

Condensed Combined Statements of Operations

	Delek Logistics Partners, LP			El Dorado Assets (El Dorado Assets Predecessor)			Tyler Assets (Tyler Assets Predecessor)			Nine Months Ended September 30, 2015
	(In thousands)
Net sales	$	480,738		$	—		$	—		$	480,738
Operating costs and expenses:
Cost of goods sold	365,286			—			—			365,286
Operating expenses	33,024			167			—			33,191
General and administrative expenses	9,094			—			—			9,094
Depreciation and amortization	13,315			372			98			13,785
Gain on asset disposals	(18		)	—			—			(18		)
Total operating costs and expenses	420,701			539			98			421,338
Operating income (loss)	60,037			(539		)	(98		)	59,400
Interest expense, net	7,616			—			—			7,616
Loss on equity method investments	442			—			—			442
Total non-operating costs and expenses	8,058			—			—			8,058
Net income (loss) before income tax expense	51,979			(539		)	(98		)	51,342
Income tax expense	426			—			—			426
Net income (loss)	51,553			(539		)	(98		)	50,916
Less: loss attributable to the Logistics Assets Predecessor	—			(539		)	(98		)	(637		)
Net income attributable to partners	$	51,553		$	—		$	—		$	51,553