Discontinued Operations and Assets Held for Sale (Notes)

6 Months Ended

Jun. 30, 2017

Discontinued Operations and Assets Held for Sale [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations and Assets Held for Sale

In August 2016, Delek entered into a Purchase Agreement to sell the Retail Entities to COPEC. As a result of the Purchase Agreement, we met the requirements of ASC 205-20and ASC 360 to report the results of the Retail Entities as discontinued operations and to classify the Retail Entities as a group of assets held for sale. The fair value assessment of the Retail Entities as of August 27, 2016 did not result in an impairment. We ceased depreciation of these assets as of August 27, 2016. The Retail Transaction closed in November 2016 and we received cash consideration of $378.9 million, net of debt repayments and transaction costs, and retained approximately $62.8 million of net liabilities from the Retail Entities. The Retail Transaction resulted in a gain on sale of the Retail Entities, before income tax, of $134.1 million.

Under the terms of the Purchase Agreement, Lion Oil and MAPCO Express entered into a supply agreement at the closing of the Retail Transaction pursuant to which Lion Oil will supply fuel to retail locations owned by MAPCO Express for a period of 18 months following the closing of the Retail Transaction (the "Fuel Supply Agreement"). We recorded net revenues of $104.5 million and $208.7 million and net cash inflows of $137.1 million and $236.1 million for the three and six months ended June 30, 2017, respectively, associated with the Fuel Supply Agreement.

Once the Retail Entities were identified as assets held for sale, the operations associated with these properties qualified for reporting as discontinued operations. Accordingly, the operating results, net of tax, from discontinued operations are presented separately in Delek’s condensed consolidated statements of income and the notes to the condensed consolidated financial statements have been adjusted to exclude the discontinued operations. Components of amounts reflected in income from discontinued operations are as follows (in millions):

	Three Months Ended			Six Months Ended
	June 30, 2016			June 30, 2016
Revenue	279.1			498.9
Cost of goods sold	(228.6		)	(403.9		)
Operating expenses	(32.5		)	(65.4		)
General and administrative expenses	(5.7		)	(11.3		)
Depreciation and amortization	(8.0		)	(15.8		)
Other operating income, net	0.3			—
Interest expense	(1.8		)	(3.6		)
Income (loss) from discontinued operations before taxes	2.8			(1.1		)
Income tax expense (benefit)	0.9			(0.6		)
Income (loss) from discontinued operations, net of tax	$	1.9		$	(0.5	)