Delek Logistics

3 Months Ended

Mar. 31, 2023

Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]

Delek Logistics is a publicly traded limited partnership formed by Delek in 2012 that owns and operates crude oil, refined products and natural gas logistics and marketing assets as well as water disposal and recycling assets. A substantial majority of Delek Logistics' assets are integral to Delek’s refining and marketing operations. As of March 31, 2023, we owned a 78.7% interest in Delek Logistics, consisting of 34,311,278 common limited partner units and the non-economic general partner interest. The limited partner interests in Delek Logistics not owned by us are reflected in net income attributable to non-controlling interest in the accompanying consolidated statements of income and in non-controlling interest in subsidiaries in the accompanying consolidated balance sheets.

We have agreements with Delek Logistics that, among other things, establish fees for certain administrative and operational services provided by us and our subsidiaries to Delek Logistics, provide certain indemnification obligations and establish terms for fee-based commercial logistics and marketing services provided by Delek Logistics and its subsidiaries to us. The revenues and expenses associated with these agreements are eliminated in consolidation.

Delek Logistics is a VIE, as defined under GAAP, and is consolidated into our consolidated financial statements, representing our logistics segment. The assets of Delek Logistics can only be used to settle its own obligations and its creditors have no recourse to our assets. Exclusive of intercompany balances and the marketing agreement intangible asset between Delek Logistics and Delek which are eliminated in consolidation, the Delek Logistics consolidated balance sheets are included in the consolidated balance sheets of Delek. The Delek Logistics consolidated balance sheets are presented below (in millions):


	As of March 31, 2023		As of December 31, 2022
ASSETS
Cash and cash equivalents	$	11.0	$	8.0
Accounts receivable	60.5		53.3

Inventory	2.7		1.5
Other current assets	2.7		2.4
Property, plant and equipment, net	941.1		924.0
Equity method investments	243.3		257.0
Operating lease right-of-use assets	24.9		24.8
Goodwill	27.1		27.1
Intangible assets, net	358.9		364.8
Other non-current assets	19.4		16.4
Total assets	$	1,691.6	$	1,679.3
LIABILITIES AND DEFICIT
Accounts payable	$	23.1	$	57.4
Accounts payable to related parties	4.5		6.1
Current portion of long-term debt	15.0		15.0
Current portion of operating lease liabilities	8.1		8.0
Accrued expenses and other current liabilities	27.2		19.7
Long-term debt	1,693.2		1,646.6
Asset retirement obligations	9.5		9.3
Operating lease liabilities, net of current portion	12.2		12.1
Other non-current liabilities	16.2		15.8
Deficit	(117.4)		(110.7)
Total liabilities and deficit	$	1,691.6	$	1,679.3