Goodwill

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

Goodwill represents the excess of the aggregate purchase price over the fair value of the identifiable net assets acquired and is not amortized. Delek performs an annual assessment of whether goodwill retains its value. This assessment is done more frequently if indicators of potential impairment exist. We performed our annual goodwill impairment review in the fourth quarter of 2022, 2021 and 2020. This review was performed at the reporting unit level, which is at or one level below our operating segment. For a quantitative assessment, we estimated the value of each of our reporting units using a discounted cash flows ("DCF") analysis and a multiple of expected future cash flows, such as those used by third-party analysts. The DCF analysis included a market participant weighted average cost of capital, forecasted crack spreads, gross margin, capital expenditures, and long-term growth rate based on historical information and our best estimate of future forecasts. The market approach involves significant judgment, including selection of an appropriate peer group, selection of valuation multiples, and determination of the appropriate weighting in our valuation model. With respect to the goodwill associated with the reporting units within the logistics segment, we performed a qualitative assessment in 2022, 2021 and 2020. With respect to the goodwill associated with the reporting units within the refining and retail segments, we performed a qualitative assessment in 2022 and a quantitative assessment in 2021 and 2020. For the year ended December 31, 2020, the annual impairment review resulted in an impairment charge of $126.0 million. For the years ended December 31, 2022 and 2021, no impairment of goodwill occurred. Accumulated goodwill impairment was $126.0 million as of December 31, 2022.

A summary of our goodwill by segment is as follows (in millions):

		Refining		Logistics		Retail		Corporate, Other and Eliminations		Total
Balance,	December 31, 2019	$	801.3	$	12.2	$	42.2	$	—	$	855.7
Goodwill impairment		(126.0)		—		—		—		(126.0)
Balance,	December 31, 2020	675.3		12.2		42.2		—		729.7
Balance,	December 31, 2021	675.3		12.2		42.2		—		729.7
Acquisition		—		14.8		—		—		14.8
Write-off goodwill associated with stores sold		—		—		(0.2)		—		(0.2)
Balance,	December 31, 2022	$	675.3	$	27.0	$	42.0	$	—	$	744.3

.