10-Q 1 dk-20220331.htm 10-Q dk-20220331
000169442612/312022Q1FALSEhttp://fasb.org/us-gaap/2021-01-31#ChangeInAccountingPrincipleOtherMember33.33P1Y00016944262022-01-012022-03-3100016944262022-04-29xbrli:shares00016944262022-03-31iso4217:USD00016944262021-12-31iso4217:USDxbrli:shares00016944262021-01-012021-03-310001694426us-gaap:CommonStockMember2021-12-310001694426us-gaap:AdditionalPaidInCapitalMember2021-12-310001694426us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001694426us-gaap:RetainedEarningsMember2021-12-310001694426us-gaap:TreasuryStockMember2021-12-310001694426us-gaap:NoncontrollingInterestMember2021-12-310001694426us-gaap:RetainedEarningsMember2022-01-012022-03-310001694426us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001694426us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001694426us-gaap:CommonStockMember2022-01-012022-03-310001694426us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001694426us-gaap:TreasuryStockMember2022-01-012022-03-310001694426us-gaap:CommonStockMember2022-03-310001694426us-gaap:AdditionalPaidInCapitalMember2022-03-310001694426us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001694426us-gaap:RetainedEarningsMember2022-03-310001694426us-gaap:TreasuryStockMember2022-03-310001694426us-gaap:NoncontrollingInterestMember2022-03-310001694426us-gaap:CommonStockMember2020-12-310001694426us-gaap:AdditionalPaidInCapitalMember2020-12-310001694426us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001694426us-gaap:RetainedEarningsMember2020-12-310001694426us-gaap:TreasuryStockMember2020-12-310001694426us-gaap:NoncontrollingInterestMember2020-12-3100016944262020-12-3100016944262020-01-012020-12-310001694426us-gaap:RetainedEarningsMembersrt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember2020-12-310001694426srt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember2020-12-310001694426us-gaap:RetainedEarningsMember2021-01-012021-03-310001694426us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001694426us-gaap:CommodityContractMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001694426us-gaap:CommodityContractMember2021-01-012021-03-310001694426us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001694426us-gaap:CommonStockMember2021-01-012021-03-310001694426us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001694426us-gaap:TreasuryStockMember2021-01-012021-03-310001694426us-gaap:CommonStockMember2021-03-310001694426us-gaap:AdditionalPaidInCapitalMember2021-03-310001694426us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001694426us-gaap:RetainedEarningsMember2021-03-310001694426us-gaap:TreasuryStockMember2021-03-310001694426us-gaap:NoncontrollingInterestMember2021-03-3100016944262021-03-31xbrli:pure0001694426dk:RefiningMember2022-01-012022-03-31utr:bblutr:D0001694426dk:TylerRefineryMemberdk:RefiningMember2022-01-012022-03-310001694426dk:ElDoradoRefineryMemberdk:RefiningMember2022-01-012022-03-310001694426dk:BigSpringRefineryMemberdk:RefiningMember2022-01-012022-03-310001694426dk:KrotzSpringRefineryMemberdk:RefiningMember2022-01-012022-03-31dk:facility00016944262020-05-07dk:store0001694426dk:LogisticsMember2022-01-012022-03-310001694426dk:RetailSegmentMember2022-01-012022-03-310001694426us-gaap:CorporateNonSegmentMember2022-01-012022-03-310001694426dk:RefiningMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310001694426dk:LogisticsMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310001694426dk:RetailSegmentMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310001694426us-gaap:IntersegmentEliminationMember2022-01-012022-03-310001694426us-gaap:OperatingSegmentsMemberus-gaap:ProductMemberdk:RefiningMember2022-01-012022-03-310001694426us-gaap:OperatingSegmentsMemberdk:LogisticsMemberus-gaap:ProductMember2022-01-012022-03-310001694426us-gaap:OperatingSegmentsMemberdk:RetailSegmentMemberus-gaap:ProductMember2022-01-012022-03-310001694426us-gaap:ProductMemberus-gaap:CorporateNonSegmentMember2022-01-012022-03-310001694426us-gaap:ProductMember2022-01-012022-03-310001694426us-gaap:OperatingSegmentsMemberdk:RefiningMember2022-01-012022-03-310001694426us-gaap:OperatingSegmentsMemberdk:LogisticsMember2022-01-012022-03-310001694426us-gaap:OperatingSegmentsMemberdk:RetailSegmentMember2022-01-012022-03-310001694426dk:RefiningMember2021-01-012021-03-310001694426dk:LogisticsMember2021-01-012021-03-310001694426dk:RetailSegmentMember2021-01-012021-03-310001694426us-gaap:CorporateNonSegmentMember2021-01-012021-03-310001694426dk:RefiningMemberus-gaap:IntersegmentEliminationMember2021-01-012021-03-310001694426dk:LogisticsMemberus-gaap:IntersegmentEliminationMember2021-01-012021-03-310001694426dk:RetailSegmentMemberus-gaap:IntersegmentEliminationMember2021-01-012021-03-310001694426us-gaap:IntersegmentEliminationMember2021-01-012021-03-310001694426us-gaap:OperatingSegmentsMemberus-gaap:ProductMemberdk:RefiningMember2021-01-012021-03-310001694426us-gaap:OperatingSegmentsMemberdk:LogisticsMemberus-gaap:ProductMember2021-01-012021-03-310001694426us-gaap:OperatingSegmentsMemberdk:RetailSegmentMemberus-gaap:ProductMember2021-01-012021-03-310001694426us-gaap:ProductMemberus-gaap:CorporateNonSegmentMember2021-01-012021-03-310001694426us-gaap:ProductMember2021-01-012021-03-310001694426us-gaap:OperatingSegmentsMemberdk:RefiningMember2021-01-012021-03-310001694426us-gaap:OperatingSegmentsMemberdk:LogisticsMember2021-01-012021-03-310001694426us-gaap:OperatingSegmentsMemberdk:RetailSegmentMember2021-01-012021-03-310001694426us-gaap:OperatingSegmentsMemberdk:RefiningMember2022-03-310001694426us-gaap:OperatingSegmentsMemberdk:LogisticsMember2022-03-310001694426us-gaap:OperatingSegmentsMemberdk:RetailSegmentMember2022-03-310001694426dk:CorporateAndEliminationsMember2022-03-310001694426dk:RefiningMemberus-gaap:IntersegmentEliminationMember2022-03-310001694426dk:LogisticsMemberus-gaap:IntersegmentEliminationMember2022-03-310001694426dk:RetailSegmentMemberus-gaap:IntersegmentEliminationMember2022-03-310001694426us-gaap:IntersegmentEliminationMember2022-03-310001694426dk:RefiningMember2022-03-310001694426dk:LogisticsMember2022-03-310001694426dk:RetailSegmentMember2022-03-310001694426us-gaap:CorporateNonSegmentMember2022-03-310001694426dk:CorporateReconcilingItemsAndEliminationsMember2022-03-310001694426dk:CorporateReconcilingItemsAndEliminationsMember2022-01-012022-03-310001694426dk:AlonBakersfieldPropertyInc.Member2020-05-070001694426dk:StockCompensationPlanExcludingLossMember2022-01-012022-03-310001694426dk:StockCompensationPlanExcludingLossMember2021-01-012021-03-310001694426dk:StockCompensationPlanLossMember2022-01-012022-03-310001694426dk:StockCompensationPlanLossMember2021-01-012021-03-310001694426us-gaap:StockCompensationPlanMember2022-01-012022-03-310001694426us-gaap:StockCompensationPlanMember2021-01-012021-03-310001694426us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberdk:DelekLogisticsMember2022-01-012022-03-310001694426dk:DelekLogisticsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-03-310001694426us-gaap:SubsequentEventMember2022-04-1400016944262021-12-200001694426dk:DelekLogisticsMember2020-08-310001694426us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberdk:DelekLogisticsPartnersLPMember2022-03-310001694426us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberdk:DelekLogisticsPartnersLPMember2021-12-310001694426dk:WinktoWebsterPipelineLLCMember2019-07-300001694426dk:W2WHoldingsLLCMember2020-02-210001694426dk:WinktoWebsterPipelineLLCMember2022-03-310001694426dk:WinktoWebsterPipelineLLCMember2021-12-310001694426dk:WinktoWebsterPipelineLLCMember2022-01-012022-03-310001694426dk:WinktoWebsterPipelineLLCMember2021-01-012021-03-310001694426dk:RedRiverPipelineCompanyLLCMember2019-05-310001694426dk:RedRiverMember2022-03-310001694426dk:RedRiverMember2021-12-310001694426dk:RedRiverExpansionMember2022-01-012022-03-310001694426dk:RedRiverMember2022-01-012022-03-310001694426dk:RedRiverMember2021-01-012021-03-310001694426dk:DelekLogisticsPartnersLPMemberdk:JointVenturesMember2022-01-012022-03-31dk:joint_venture0001694426dk:CPLLCMember2022-03-310001694426dk:RangelandRioMember2022-03-310001694426dk:DelekLogisticsPartnersLPMemberdk:JointVenturesMember2022-03-310001694426dk:DelekLogisticsPartnersLPMemberdk:JointVenturesMember2021-12-310001694426dk:DelekUSHoldingsInc.Memberdk:JointVenturesMember2022-03-310001694426dk:DelekUSHoldingsInc.Memberdk:JointVenturesMember2021-12-310001694426dk:DelekUSHoldingsInc.Memberdk:JointVenturesMember2022-01-012022-03-310001694426dk:DelekUSHoldingsInc.Memberdk:JointVenturesMember2021-01-012021-03-310001694426dk:DelekRenewablesLLCMemberdk:JointVenturesMember2022-03-310001694426dk:DelekRenewablesLLCMemberdk:JointVenturesMember2021-12-310001694426dk:DelekRenewablesLLCMemberdk:JointVenturesMember2022-01-012022-03-310001694426dk:DelekRenewablesLLCMemberdk:JointVenturesMember2021-01-012021-03-310001694426us-gaap:RetainedEarningsMembersrt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember2021-01-010001694426dk:RefiningMember2021-12-310001694426dk:RetailSegmentMember2021-12-310001694426dk:LogisticsMember2021-12-310001694426srt:ScenarioPreviouslyReportedMember2021-01-012021-03-310001694426srt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember2021-01-012021-03-310001694426srt:ScenarioPreviouslyReportedMember2021-12-310001694426srt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember2021-12-310001694426srt:ScenarioPreviouslyReportedMember2022-01-012022-03-310001694426srt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember2022-01-012022-03-310001694426srt:ScenarioPreviouslyReportedMember2022-03-310001694426srt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember2022-03-310001694426us-gaap:CostOfSalesMember2022-01-012022-03-310001694426us-gaap:CostOfSalesMember2021-01-012021-03-310001694426dk:ElDoradoRefineryMemberdk:BaselineStepOutLiabilityMemberdk:J.AronCompanyMember2022-03-31utr:bbl0001694426dk:BigSpringRefineryMemberdk:BaselineStepOutLiabilityMemberdk:J.AronCompanyMember2022-03-310001694426dk:BaselineStepOutLiabilityMemberdk:KrotzSpringRefineryMemberdk:J.AronCompanyMember2022-03-310001694426dk:ElDoradoRefineryMemberdk:J.AronCompanyMember2022-03-310001694426dk:BigSpringRefineryMemberdk:J.AronCompanyMember2022-03-310001694426dk:KrotzSpringRefineryMemberdk:J.AronCompanyMember2022-03-310001694426dk:ElDoradoRefineryMemberdk:J.AronCompanyMember2021-12-310001694426dk:BigSpringRefineryMemberdk:J.AronCompanyMember2021-12-310001694426dk:KrotzSpringRefineryMemberdk:J.AronCompanyMember2021-12-310001694426dk:ElDoradoRefineryMemberdk:BaselineStepOutLiabilityMember2022-03-310001694426dk:BigSpringRefineryMemberdk:BaselineStepOutLiabilityMember2022-03-310001694426dk:BaselineStepOutLiabilityMemberdk:KrotzSpringRefineryMember2022-03-310001694426dk:BaselineStepOutLiabilityMember2022-03-310001694426dk:ElDoradoRefineryMember2022-03-310001694426dk:BigSpringRefineryMember2022-03-310001694426dk:KrotzSpringRefineryMember2022-03-310001694426dk:ElDoradoRefineryMemberdk:BaselineStepOutLiabilityMember2021-12-310001694426dk:BigSpringRefineryMemberdk:BaselineStepOutLiabilityMember2021-12-310001694426dk:BaselineStepOutLiabilityMemberdk:KrotzSpringRefineryMember2021-12-310001694426dk:BaselineStepOutLiabilityMember2021-12-310001694426dk:ElDoradoRefineryMember2021-12-310001694426dk:BigSpringRefineryMember2021-12-310001694426dk:KrotzSpringRefineryMember2021-12-310001694426dk:ElDoradoRefineryMemberus-gaap:InterestExpenseMemberdk:J.AronCompanyMember2022-01-012022-03-310001694426us-gaap:InterestExpenseMemberdk:BigSpringRefineryMemberdk:J.AronCompanyMember2022-01-012022-03-310001694426us-gaap:InterestExpenseMemberdk:KrotzSpringRefineryMemberdk:J.AronCompanyMember2022-01-012022-03-310001694426us-gaap:InterestExpenseMemberdk:J.AronCompanyMember2022-01-012022-03-310001694426dk:ElDoradoRefineryMemberus-gaap:InterestExpenseMemberdk:J.AronCompanyMember2021-01-012021-03-310001694426us-gaap:InterestExpenseMemberdk:BigSpringRefineryMemberdk:J.AronCompanyMember2021-01-012021-03-310001694426us-gaap:InterestExpenseMemberdk:KrotzSpringRefineryMemberdk:J.AronCompanyMember2021-01-012021-03-310001694426us-gaap:InterestExpenseMemberdk:J.AronCompanyMember2021-01-012021-03-310001694426us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001694426us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2021-12-310001694426dk:DelekTermLoanCreditFacilityMemberus-gaap:SecuredDebtMember2022-03-310001694426dk:DelekTermLoanCreditFacilityMemberus-gaap:SecuredDebtMember2021-12-310001694426us-gaap:NotesPayableToBanksMemberdk:HapoalimTermLoanMember2022-03-310001694426us-gaap:NotesPayableToBanksMemberdk:HapoalimTermLoanMember2021-12-310001694426us-gaap:LineOfCreditMemberdk:DklRevolverMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001694426us-gaap:LineOfCreditMemberdk:DklRevolverMemberus-gaap:RevolvingCreditFacilityMember2021-12-310001694426dk:A2025NotesMemberus-gaap:SeniorNotesMember2022-03-310001694426dk:A2025NotesMemberus-gaap:SeniorNotesMember2021-12-310001694426us-gaap:SeniorNotesMemberdk:A2028NotesMember2022-03-310001694426us-gaap:SeniorNotesMemberdk:A2028NotesMember2021-12-310001694426dk:ReliantBankRevolverMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001694426dk:ReliantBankRevolverMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2021-12-310001694426us-gaap:SecuredDebtMember2018-03-300001694426us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2018-03-30iso4217:CAD0001694426us-gaap:LetterOfCreditMember2018-03-300001694426us-gaap:LetterOfCreditMember2022-03-210001694426us-gaap:SecuredDebtMember2018-03-302018-03-300001694426dk:IncrementalTermLoansMemberus-gaap:SecuredDebtMember2019-05-220001694426dk:IncrementalTermLoansMemberus-gaap:SecuredDebtMember2019-11-120001694426dk:IncrementalTermLoansMemberus-gaap:SecuredDebtMember2020-05-190001694426us-gaap:SecuredDebtMember2020-05-190001694426us-gaap:SecuredDebtMemberus-gaap:BaseRateMember2018-10-262018-10-260001694426us-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-10-262018-10-260001694426dk:IncrementalTermLoansMemberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-05-192020-05-190001694426dk:IncrementalTermLoansMemberus-gaap:SecuredDebtMemberus-gaap:BaseRateMember2020-05-192020-05-190001694426us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMembersrt:MinimumMember2022-01-012022-03-310001694426us-gaap:LineOfCreditMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2022-01-012022-03-310001694426us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MinimumMember2022-01-012022-03-310001694426us-gaap:LineOfCreditMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-03-310001694426us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMember2022-01-012022-03-310001694426us-gaap:LineOfCreditMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-03-310001694426us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-03-310001694426dk:IncrementalTermLoansMemberus-gaap:SecuredDebtMember2019-11-122019-11-120001694426us-gaap:SecuredDebtMembersrt:MinimumMember2018-03-300001694426srt:MaximumMemberus-gaap:SecuredDebtMember2018-03-300001694426dk:IncrementalTermLoansMemberus-gaap:SecuredDebtMember2020-05-192020-05-190001694426us-gaap:SecuredDebtMember2022-03-310001694426us-gaap:NotesPayableToBanksMemberdk:HapoalimTermLoanMember2020-12-310001694426us-gaap:NotesPayableToBanksMemberus-gaap:LondonInterbankOfferedRateLIBORMemberdk:HapoalimTermLoanMember2019-12-312019-12-310001694426us-gaap:NotesPayableToBanksMemberdk:HapoalimTermLoanMember2019-12-312019-12-310001694426us-gaap:NotesPayableToBanksMemberdk:HapoalimTermLoanMember2022-01-312022-01-310001694426dk:FifthThirdBankMemberus-gaap:LineOfCreditMemberdk:DklRevolverMemberus-gaap:RevolvingCreditFacilityMember2018-09-280001694426dk:FifthThirdBankMemberus-gaap:LineOfCreditMemberdk:DklRevolverMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2022-01-012022-03-310001694426dk:FifthThirdBankMemberus-gaap:LineOfCreditMemberdk:DklRevolverMemberus-gaap:RevolvingCreditFacilityMemberdk:CanadianprimerateMember2022-01-012022-03-310001694426dk:FifthThirdBankMemberus-gaap:LineOfCreditMemberdk:DklRevolverMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-03-310001694426dk:FifthThirdBankMemberus-gaap:LineOfCreditMemberdk:DklRevolverMemberus-gaap:RevolvingCreditFacilityMember2022-03-310001694426dk:FifthThirdBankMemberus-gaap:LineOfCreditMemberdk:DklRevolverMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-03-3100016944262020-08-310001694426dk:A2025NotesMemberus-gaap:SeniorNotesMember2017-05-230001694426us-gaap:DebtInstrumentRedemptionPeriodThreeMemberdk:A2025NotesMemberus-gaap:SeniorNotesMember2017-05-232017-05-230001694426dk:A2025NotesMemberus-gaap:DebtInstrumentRedemptionPeriodFourMemberus-gaap:SeniorNotesMember2017-05-232017-05-230001694426us-gaap:DebtInstrumentRedemptionPeriodFiveMemberdk:A2025NotesMemberus-gaap:SeniorNotesMember2017-05-232017-05-230001694426dk:A2025NotesMemberus-gaap:SeniorNotesMember2022-01-012022-03-310001694426us-gaap:SeniorNotesMemberdk:A2028NotesMember2021-05-240001694426us-gaap:SeniorNotesMemberdk:A2028NotesMember2021-05-242021-05-240001694426us-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:SeniorNotesMemberdk:A2028NotesMember2021-05-242021-05-240001694426us-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:SeniorNotesMemberdk:A2028NotesMember2021-05-242021-05-240001694426us-gaap:DebtInstrumentRedemptionPeriodThreeMemberus-gaap:SeniorNotesMemberdk:A2028NotesMember2021-05-242021-05-240001694426us-gaap:DebtInstrumentRedemptionPeriodFourMemberus-gaap:SeniorNotesMemberdk:A2028NotesMember2021-05-242021-05-240001694426dk:ReliantBankRevolverMemberus-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2022-01-012022-03-310001694426us-gaap:CommodityContractMember2022-01-012022-03-310001694426us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:OtherCurrentAssetsMember2022-03-310001694426us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:OtherCurrentAssetsMember2021-12-310001694426us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:OtherCurrentLiabilitiesMember2022-03-310001694426us-gaap:NondesignatedMemberus-gaap:CommodityContractMemberus-gaap:OtherCurrentLiabilitiesMember2021-12-310001694426us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:CommodityContractMember2022-03-310001694426us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:NondesignatedMemberus-gaap:CommodityContractMember2021-12-310001694426us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMemberdk:RINCommitmentContractsMember2022-03-310001694426us-gaap:NondesignatedMemberus-gaap:OtherCurrentAssetsMemberdk:RINCommitmentContractsMember2021-12-310001694426us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMemberdk:RINCommitmentContractsMember2022-03-310001694426us-gaap:NondesignatedMemberus-gaap:OtherCurrentLiabilitiesMemberdk:RINCommitmentContractsMember2021-12-310001694426srt:OilReservesMemberus-gaap:CommodityContractMember2022-03-310001694426srt:OilReservesMemberus-gaap:CommodityContractMember2021-12-310001694426srt:OilReservesMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001694426srt:OilReservesMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001694426srt:NaturalGasReservesMemberus-gaap:CommodityContractMember2021-12-31utr:MMBTU0001694426dk:RINCommitmentContractsMember2022-03-31dk:rIN0001694426dk:RINCommitmentContractsMember2021-12-310001694426us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2022-01-012022-03-310001694426us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2021-01-012021-03-310001694426us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2022-01-012022-03-310001694426us-gaap:CommodityContractMemberus-gaap:CostOfSalesMember2021-01-012021-03-310001694426us-gaap:CostOfSalesMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-03-310001694426us-gaap:CostOfSalesMemberus-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-03-310001694426us-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2022-01-012022-03-310001694426us-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2021-01-012021-03-310001694426us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-03-310001694426us-gaap:CommodityContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-03-310001694426us-gaap:ForwardContractsMember2022-01-012022-03-310001694426us-gaap:ForwardContractsMember2021-01-012021-03-310001694426us-gaap:FairValueInputsLevel1Memberus-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel2Memberus-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel1Memberus-gaap:CommoditiesInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel2Memberus-gaap:CommoditiesInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:CommoditiesInvestmentMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:CommoditiesInvestmentMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberdk:RINCommitmentContractsMember2022-03-310001694426us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberdk:RINCommitmentContractsMember2022-03-310001694426us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberdk:RINCommitmentContractsMember2022-03-310001694426us-gaap:FairValueMeasurementsRecurringMemberdk:RINCommitmentContractsMember2022-03-310001694426us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel1Memberdk:EnvironmentalCreditsObligationMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel2Memberdk:EnvironmentalCreditsObligationMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel3Memberdk:EnvironmentalCreditsObligationMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426dk:EnvironmentalCreditsObligationMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberdk:J.AronStepoutLiabilityMember2022-03-310001694426us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberdk:J.AronStepoutLiabilityMember2022-03-310001694426us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberdk:J.AronStepoutLiabilityMember2022-03-310001694426dk:J.AronStepoutLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001694426us-gaap:FairValueInputsLevel1Memberus-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:FairValueInputsLevel2Memberus-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:CommodityContractMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:CommodityContractMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberdk:RINCommitmentContractsMember2021-12-310001694426us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberdk:RINCommitmentContractsMember2021-12-310001694426us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberdk:RINCommitmentContractsMember2021-12-310001694426us-gaap:FairValueMeasurementsRecurringMemberdk:RINCommitmentContractsMember2021-12-310001694426us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:FairValueInputsLevel1Memberdk:EnvironmentalCreditsObligationMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:FairValueInputsLevel2Memberdk:EnvironmentalCreditsObligationMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:FairValueInputsLevel3Memberdk:EnvironmentalCreditsObligationMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426dk:EnvironmentalCreditsObligationMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberdk:J.AronStepoutLiabilityMember2021-12-310001694426us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberdk:J.AronStepoutLiabilityMember2021-12-310001694426us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberdk:J.AronStepoutLiabilityMember2021-12-310001694426dk:J.AronStepoutLiabilityMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001694426dk:ElDoradoRefineryPriorOwnerCaseMember2022-03-310001694426dk:ElDoradoRefineryPriorOwnerCaseMember2021-12-310001694426dk:ArkansasTeacherRetirementSystemVAlonUSAEnergyIncMember2021-10-292021-10-290001694426dk:ArkansasTeacherRetirementSystemVAlonUSAEnergyIncMember2022-03-310001694426dk:ElDoradoRefineryPriorOwnerCaseMember2022-01-012022-03-310001694426dk:AsphaltAndMarineFuelTerminalMember2022-03-310001694426dk:AsphaltAndMarineFuelTerminalMember2021-12-3100016944262021-04-012021-06-300001694426dk:ElDoradoRefineryFireMember2021-02-272021-02-27dk:employee0001694426dk:ElDoradoRefineryFireMember2021-01-012021-03-310001694426dk:ElDoradoRefineryFireMember2022-01-012022-03-310001694426dk:WinterStormUriMember2021-01-012021-03-310001694426dk:WinterStormUriMember2022-01-012022-03-31dk:crudeOilRelease0001694426us-gaap:LetterOfCreditMember2022-03-310001694426dk:RelatedPartyTransactionsMemberus-gaap:EquityMethodInvesteeMember2022-01-012022-03-310001694426dk:RelatedPartyTransactionsMemberus-gaap:EquityMethodInvesteeMember2021-01-012021-03-310001694426us-gaap:CommonStockMemberdk:DelekUS2016LongTermIncentivePlansMember2021-05-060001694426us-gaap:OperatingExpenseMemberdk:DelekUS2006And2016AndAlonUSAEnergy2005LongTermIncentivePlanMember2022-01-012022-03-310001694426dk:DelekUS2006And2016AndAlonUSAEnergy2005LongTermIncentivePlanMemberus-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-03-310001694426dk:DelekUS2006And2016AndAlonUSAEnergy2005LongTermIncentivePlanMemberus-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-03-310001694426us-gaap:OperatingExpenseMemberdk:DelekUS2006And2016AndAlonUSAEnergy2005LongTermIncentivePlanMember2021-01-012021-03-310001694426dk:DelekUS2006And2016AndAlonUSAEnergy2005LongTermIncentivePlanMember2022-03-310001694426dk:DelekUS2006And2016AndAlonUSAEnergy2005LongTermIncentivePlanMember2022-01-012022-03-310001694426dk:DelekUS2006And2016AndAlonUSAEnergy2005LongTermIncentivePlanMember2021-01-012021-03-310001694426us-gaap:CommonStockMemberdk:DelekLogisticsGP2012LongTermIncentivePlanMember2021-06-090001694426dk:DelekUSEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2021-06-020001694426dk:DelekUSEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2021-06-022021-06-020001694426dk:DelekUSEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2022-01-012022-03-310001694426us-gaap:CommonStockMember2018-11-060001694426us-gaap:CommonStockMember2022-03-072022-03-0700016944262022-03-072022-03-070001694426srt:MinimumMember2022-03-310001694426srt:MaximumMember2022-03-310001694426dk:A3BearDelawareHoldingMemberus-gaap:SubsequentEventMember2022-04-080001694426dk:A3BearDelawareHoldingMemberus-gaap:SubsequentEventMember2022-04-082022-04-08

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number 001-38142
DELEK US HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware
dk-20220331_g1.jpg
35-2581557
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
7102 Commerce Way
Brentwood
Tennessee
37027
(Address of principal executive offices)
(Zip Code)
(615771-6701
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $0.01DKNew York Stock Exchange
At April 29, 2022, there were 70,745,085 shares of common stock, $0.01 par value, outstanding (excluding securities held by, or for the account of, the Company or its subsidiaries).


Table of Contents
Delek US Holdings, Inc.
Quarterly Report on Form 10-Q
For the Quarterly Period Ended March 31, 2022
dk-20220331_g2.jpg

2 |
dk-20220331_g3.jpg

Financial Statements
Part I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Delek US Holdings, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In millions, except share and per share data)

March 31, 2022
December 31, 2021 As Adjusted (1)
ASSETS  
Current assets:  
Cash and cash equivalents$854.1 $856.5 
Accounts receivable, net1,405.0 776.6 
Inventories, net of inventory valuation reserves1,624.2 1,260.7 
Other current assets309.1 126.0 
Total current assets4,192.4 3,019.8 
Property, plant and equipment:  
Property, plant and equipment3,675.0 3,645.4 
Less: accumulated depreciation(1,401.0)(1,338.1)
Property, plant and equipment, net2,274.0 2,307.3 
Operating lease right-of-use assets196.0 208.5 
Goodwill729.4 729.7 
Other intangibles, net103.7 102.7 
Equity method investments347.8 344.1 
Other non-current assets103.4 100.5 
Total assets $7,946.7 $6,812.6 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$2,548.1 $1,695.3 
Current portion of long-term debt82.1 92.2 
Obligation under Supply and Offtake Agreements589.3 487.5 
Current portion of operating lease liabilities52.2 53.9 
Accrued expenses and other current liabilities1,032.3 797.8 
Total current liabilities4,304.0 3,126.7 
Non-current liabilities:  
Long-term debt, net of current portion2,130.7 2,125.8 
Environmental liabilities, net of current portion109.2 109.5 
Asset retirement obligations38.5 38.3 
Deferred tax liabilities218.7 214.5 
Operating lease liabilities, net of current portion141.0 152.0 
Other non-current liabilities29.9 31.8 
Total non-current liabilities2,668.0 2,671.9 
Stockholders’ equity:  
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding
  
Common stock, $0.01 par value, 110,000,000 shares authorized, 88,320,612 shares and 91,772,080 shares issued at March 31, 2022 and December 31, 2021, respectively
0.9 0.9 
Additional paid-in capital1,156.0 1,206.5 
Accumulated other comprehensive loss(3.9)(3.8)
Treasury stock, 17,575,527 shares, at cost, as of March 31, 2022 and December 31, 2021
(694.1)(694.1)
Retained earnings391.3 384.7 
Non-controlling interests in subsidiaries124.5 119.8 
Total stockholders’ equity974.7 1,014.0 
Total liabilities and stockholders’ equity$7,946.7 $6,812.6 
(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories. See Note 6 for further discussion.

See accompanying notes to condensed consolidated financial statements
3 |
dk-20220331_g3.jpg

Financial Statements
Delek US Holdings, Inc.
Condensed Consolidated Statements of Income (Unaudited)
(In millions, except share and per share data)
Three Months Ended
March 31,
2021
 2022
As Adjusted (1)
Net revenues$4,459.1 $2,392.2 
Cost of sales: 
Cost of materials and other4,152.5 2,172.8 
Operating expenses (excluding depreciation and amortization presented below)139.5 129.9 
Depreciation and amortization62.7 62.3 
Total cost of sales4,354.7 2,365.0 
Operating expenses related to retail and wholesale business (excluding depreciation and amortization presented below)27.4 25.4 
General and administrative expenses53.1 41.1 
Depreciation and amortization5.6 6.2 
Other operating (income) expense, net(28.4)1.9 
Total operating costs and expenses4,412.4 2,439.6 
Operating income (loss)46.7 (47.4)
Interest expense, net38.4 29.4 
Income from equity method investments(10.9)(4.8)
Other expense (income), net1.3 (1.0)
Total non-operating expense, net28.8 23.6 
Income (loss) before income tax expense (benefit)17.9 (71.0)
Income tax expense (benefit)3.1 (8.3)
Net income (loss)14.8 (62.7)
Net income attributed to non-controlling interests8.2 7.3 
Net income (loss) attributable to Delek $6.6 $(70.0)
Basic income (loss) per share$0.09 $(0.95)
Diluted income (loss) per share$0.09 $(0.95)
(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories. See Note 6 for further discussion.

See accompanying notes to condensed consolidated financial statements
4 |
dk-20220331_g3.jpg

Financial Statements
Delek US Holdings, Inc.
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(In millions)
Three Months Ended
March 31,
2021
 2022
As Adjusted (1)
Net income (loss)$14.8 $(62.7)
Other comprehensive income (loss):
Commodity contracts designated as cash flow hedges:
Comprehensive loss on commodity contracts designated as cash flow hedges, net of taxes (0.2)
Other loss , net of taxes(0.1) 
Total other comprehensive loss(0.1)(0.2)
Comprehensive income (loss)14.7 (62.9)
Comprehensive income attributable to non-controlling interest8.2 7.3 
Comprehensive income (loss) attributable to Delek$6.5 $(70.2)
(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories. See Note 6 for further discussion.

See accompanying notes to condensed consolidated financial statements

5 |
dk-20220331_g3.jpg

Financial Statements
Delek US Holdings, Inc.
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)
(In millions, except share and per share data)

Three Months Ended March 31, 2022
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive IncomeRetained EarningsTreasury StockNon-Controlling Interest in SubsidiariesTotal Stockholders' Equity
SharesAmountSharesAmount
Balance at December 31, 2021, As Adjusted (1)
91,772,080$0.9 $1,206.5 $(3.8)$384.7 (17,575,527)$(694.1)$119.8 $1,014.0 
Net income— — — 6.6 — — 8.2 14.8 
Distributions to non-controlling interests— — — — — — (8.7)(8.7)
Equity-based compensation expense— 5.3 — — — — 0.1 5.4 
Sale of Delek Logistic common limited partner units, net— — 8.5 — — — — 5.1 13.6 
Purchase of Delek common stock from IEP Energy Holding LLC(3,497,268)— (64.0)— — — — — (64.0)
Taxes paid due to the net settlement of equity-based compensation— (0.3)— — — —  (0.3)
Exercise of equity-based awards45,800 — — — — — — — — 
Other— —  (0.1) —   (0.1)
Balance at March 31, 2022
88,320,612 $0.9 $1,156.0 $(3.9)$391.3 (17,575,527)$(694.1)$124.5 $974.7 

Three Months Ended March 31, 2021
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive Income
Retained Earnings As Adjusted (1)
Treasury StockNon-Controlling Interest in Subsidiaries
Total Stockholders' Equity
As Adjusted (1)
SharesAmountSharesAmount
Balance at December 31, 2020
91,356,868 $0.9 $1,185.1 $(7.2)$522.0 (17,575,527)$(694.1)$118.4 $1,125.1 
Cumulative effect of change in accounting method for certain inventory from LIFO to FIFO, net— — — — (8.7)— — — (8.7)
Net (loss) income— — — — (70.0)— — 7.3 (62.7)
Other comprehensive loss related to commodity contracts, net— — — (0.2)— — — — (0.2)
Distribution to non-controlling interest— — — — — — — (8.0)(8.0)
Equity-based compensation expense— — 4.6 — — — —  4.6 
Taxes paid due to the net settlement of equity-based compensation— — (1.1)— — — —  (1.1)
Exercise of equity-based awards93,856 — — — — — — — — 
Other— —   (0.2)—   (0.2)
Balance at March 31, 2021, As Adjusted (1)
91,450,724 $0.9 $1,188.6 $(7.4)$443.1 (17,575,527)$(694.1)$117.7 $1,048.8 
(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories. See Note 6 for further discussion.

See accompanying notes to condensed consolidated financial statements
6 |
dk-20220331_g3.jpg

Financial Statements
Delek US Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
 Three Months Ended March 31,
2021
2022
As Adjusted (1)
Cash flows from operating activities:
Net income (loss)$14.8 $(62.7)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:  
Depreciation and amortization68.3 68.5 
Non-cash lease expense 13.4 15.3 
Deferred income taxes10.4 8.9 
Income from equity method investments(10.9)(4.8)
Dividends from equity method investments6.6 5.7 
Non-cash lower of cost or market/net realizable value adjustment(8.5)0.8 
Equity-based compensation expense5.4 4.6 
Other 4.7 3.9 
Changes in assets and liabilities:  
Accounts receivable(628.4)(192.3)
Inventories and other current assets(465.2)(343.6)
Fair value of derivatives(68.3)(91.9)
Accounts payable and other current liabilities988.6 510.3 
Obligation under Supply and Offtake Agreements101.8 51.6 
Non-current assets and liabilities, net(5.9)(8.6)
Net cash provided by (used in) operating activities26.8 (34.3)
Cash flows from investing activities:  
Equity method investment contributions (1.5)
Distributions from equity method investments0.6 4.0 
Purchases of property, plant and equipment(29.5)(48.3)
Purchase of intangible assets(2.4)(0.5)
Proceeds from sale of property, plant and equipment1.0 0.2 
Insurance proceeds0.1  
Net cash used in investing activities(30.2)(46.1)
Cash flows from financing activities:  
Proceeds from long-term revolvers415.1 609.0 
Payments on long-term revolvers(409.0)(568.1)
Payments on term debt(13.3)(23.3)
Proceeds from product financing agreements317.9 277.2 
Repayments of product financing agreements(253.1)(199.3)
Taxes paid due to the net settlement of equity-based compensation(0.3)(1.1)
Distribution to non-controlling interest(8.7)(8.0)
Proceeds from sale of Delek Logistics LP common limited partner units16.4  
Purchase of Delek common stock from IEP Energy Holding LLC(64.0) 
Net cash provided by financing activities1.0 86.4 
Net (decrease) increase in cash and cash equivalents(2.4)6.0 
Cash and cash equivalents at the beginning of the period856.5 787.5 
Cash and cash equivalents at the end of the period$854.1 $793.5 

Delek US Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited) (continued)
(In millions)


Three Months Ended March 31,
2021
2022
As Adjusted (1)
Supplemental disclosures of cash flow information:  
Cash paid during the period for:  
Interest, net of capitalized interest of $0.4 million in both the 2022 and 2021 periods
$24.4 $142.1 
Income taxes$1.0 $0.1 
Non-cash investing activities: 
Increase in accrued capital expenditures$3.4 $18.8 
Non-cash financing activities:
Non-cash lease liability arising from obtaining right of use assets during the period$1.5 $19.6 
(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories. See Note 6 for further discussion.


See accompanying notes to condensed consolidated financial statements
7 |
dk-20220331_g3.jpg

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1 - Organization and Basis of Presentation
Delek US Holdings, Inc. operates through its consolidated subsidiaries, which include Delek US Energy, Inc. ("Delek Energy") (and its subsidiaries) and Alon USA Energy, Inc. ("Alon") (and its subsidiaries). The terms "we," "our," "us," "Delek" and the "Company" are used in this report to refer to Delek and its consolidated subsidiaries. Delek's common stock is listed on the New York Stock Exchange ("NYSE") under the symbol "DK."
Our condensed consolidated financial statements include the accounts of Delek and its subsidiaries. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("GAAP") have been condensed or omitted, although management believes that the disclosures herein are adequate to make the financial information presented not misleading. Our unaudited condensed consolidated financial statements have been prepared in conformity with GAAP applied on a consistent basis with those of the annual audited consolidated financial statements included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 25, 2022 (the "Annual Report on Form 10-K") and in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the year ended December 31, 2021 included in our Annual Report on Form 10-K.
Our condensed consolidated financial statements include Delek Logistics Partners, LP ("Delek Logistics", NYSE:DKL), which is a variable interest entity ("VIE"). As the indirect owner of the general partner of Delek Logistics, we have the ability to direct the activities of this entity that most significantly impact its economic performance. We are also considered to be the primary beneficiary for accounting purposes for this entity and are Delek Logistics' primary customer. As Delek Logistics does not derive an amount of gross margin material to us from third parties, there is limited risk to Delek associated with Delek Logistics' operations. However, in the event that Delek Logistics incurs a loss, our operating results will reflect such loss, net of intercompany eliminations, to the extent of our ownership interest in this entity.
In the opinion of management, all adjustments necessary for a fair presentation of the financial condition and the results of operations for the interim periods have been included. All significant intercompany transactions and account balances have been eliminated in consolidation. All adjustments are of a normal, recurring nature. Operating results for the interim period should not be viewed as representative of results that may be expected for any future interim period or for the full year.
Accounting Policies
With the exception of the policy updates below, there have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Risks and Uncertainties Related to the COVID-19 Pandemic
During the quarter ended March 31, 2022, the economic environment in which we operate continued to improve as a result of the widespread availability of vaccines and testing in the U.S. over recent months which, in turn, has contributed to return to work, return to schools, and increased travel, with a corresponding increase in the demand for vehicle motor fuel and jet fuel. While we continue to face uncertainties around the COVID-19 Pandemic in terms of new variants, these stabilization trends as well as other factors impacting demand for our products, such as the global supply constraints caused by the military conflict between Russia and the Ukraine have mitigated the risks that remaining Pandemic-related uncertainties could have a material adverse impact on our financial position or results of operations. While these remaining uncertainties did not have a material impact on the preparation of our unaudited financial statements as of and for the three months ended March 31, 2022, to the extent these uncertainties were identified and were believed to have had a material impact on our prior year period results of operations or financial position based on the requirements for assessing such financial statement impact under GAAP, we have considered them in the preparation of our unaudited financial statements as of and for the three months ended March 31, 2022. The application of accounting policies impacted by such considerations include (but are not necessarily limited to) the following:
The interim evaluation of indefinite-lived intangibles and goodwill for potential impairment, where indicators exist, as defined by GAAP;
The interim evaluation of long-lived assets for potential impairment, where indicators exist, as defined by GAAP;
The interim evaluation of joint ventures for potential impairment, where indicators exist, as defined by GAAP;
The evaluation of derivatives and hedge accounting for counterparty risk and changes in forecasted transactions, as provided for under GAAP;
The evaluation of inventory valuation allowances that may be warranted under the lower of cost or net realizable value analysis, for first-in, first-out (“FIFO”) costing method, pursuant to GAAP;
The consideration of debt modifications and/or covenant requirements, as applicable;
The evaluation of commitments and contingencies, including changes in concentrations, as applicable;
The interim evaluation of the impact of changing forecasts on our assessment of deferred tax asset valuation allowances and annual effective tax rates; and
The interim evaluation of our ability to continue as a going concern.
8 |
dk-20220331_g3.jpg

Notes to Condensed Consolidated Financial Statements (Unaudited)
Change in Accounting Principle
As of January 1, 2022, we changed our method for accounting for inventory held at the Tyler Refinery to the FIFO costing method from the last-in, first-out ("LIFO") costing method, which will conform the Company’s refining inventory to a single method of accounting. Total inventories accounted for using LIFO, prior to the accounting method change, comprised 28.0% of the Company’s total inventories as of December 31, 2021. This change in accounting method is preferable because it provides better consistency across our refineries and improves transparency, and results in recognition that better reflects the physical flow of inventory and more accurately reflects the current value of inventory. The effects of this change have been retrospectively applied to all periods presented with a cumulative effect adjustment reflected in the January 1, 2021 beginning retained earnings. See Note 6 - Inventory for additional information.
Reclassifications
Certain prior period amounts have been reclassified in order to conform to the current period presentation.
New Accounting Pronouncements Adopted During 2022
ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity
In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06, which is intended to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. The pronouncement is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2021. We adopted this guidance on January 1, 2022 and the adoption did not have a material impact on our business, financial condition or results of operations.
Accounting Pronouncements Not Yet Adopted
ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848)
In March 2020, the FASB issued an amendment which is intended to provide temporary optional expedients and exceptions to GAAP guidance on contracts, hedge accounting and other transactions affected by the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank rates. This guidance is effective for all entities at any time beginning on March 12, 2020 through December 31, 2022 and may be applied from the beginning of an interim period that includes the issuance date of the ASU. The Company is currently evaluating the impact this guidance may have on its condensed consolidated financial statements and related disclosures.

Note 2 - Segment Data
We aggregate our operating units into three reportable segments: Refining, Logistics, and Retail. Operations that are not specifically included in the reportable segments are included in Corporate, Other and Eliminations, which consist of the following:
our corporate activities;
results of certain immaterial operating segments, including our Canadian crude trading operations (as discussed in Note 9);
wholesale crude operations;
Alon's asphalt terminal operations; and
intercompany eliminations.
Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each of the reportable segments based on the segment contribution margin. Segment contribution margin is defined as net revenues less cost of materials and other and operating expenses, excluding depreciation and amortization.
Refining Segment
The refining segment processes crude oil and other feedstocks for the manufacture of transportation motor fuels, including various grades of gasoline, diesel fuel and aviation fuel, asphalt and other petroleum-based products that are distributed through owned and third-party product terminals. The refining segment has a combined nameplate capacity of 302,000 barrels per day ("bpd") as of March 31, 2022, including the following:
75,000 bpd Tyler, Texas refinery (the "Tyler refinery");
80,000 bpd El Dorado, Arkansas refinery (the "El Dorado refinery");
73,000 bpd Big Spring, Texas refinery (the "Big Spring refinery"); and
74,000 bpd Krotz Springs, Louisiana refinery (the "Krotz Springs refinery").
9 |
dk-20220331_g3.jpg

Notes to Condensed Consolidated Financial Statements (Unaudited)
The refining segment also owns and operates three biodiesel facilities involved in the production of biodiesel fuels and related activities, located in Crossett, Arkansas, Cleburne, Texas and New Albany, Mississippi. The biodiesel industry has historically been substantially aided by federal and state tax incentives. One tax incentive program that has been significant to our renewable fuels facilities is the federal blender's tax credit (also known as the biodiesel tax credit or "BTC"). The BTC provides a $1.00 refundable tax credit per gallon of pure biodiesel to the first blender of biodiesel with petroleum-based diesel fuel. The blender's tax credit was re-enacted in December 2019 for the years 2020 through 2022.
On May 7, 2020, we sold our equity interests in Alon Bakersfield Property, Inc., an indirect wholly-owned subsidiary that owned our non-operating refinery located in Bakersfield, California, to a subsidiary of Global Clean Energy Holdings, Inc. (“GCE”). As part of the transaction, GCE granted a call option to Delek to acquire up to a 33 1/3% limited member interest in the acquiring subsidiary of GCE for up to $13.3 million, subject to certain adjustments. Such option is exercisable by Delek through the 90th day after GCE demonstrates commercial operations, as contractually defined, which has not yet occurred as of March 31, 2022.
The refining segment's petroleum-based products are marketed primarily in the south central, southwestern and western regions of the United States. This segment also ships and sells gasoline into wholesale markets in the southern and eastern United States. Motor fuels are sold under the Alon or Delek brand through various terminals to supply Alon or Delek branded retail sites. In addition, Alon sells motor fuels through its wholesale distribution network on an unbranded basis.
Logistics Segment
Our logistics segment owns and operates crude oil and refined products logistics and marketing assets. The logistics segment generates revenue by charging fees for gathering, transporting and storing crude oil and for marketing, distributing, transporting and storing intermediate and refined products in select regions of the southeastern United States and West Texas for our refining segment and third parties, and sales of wholesale products in the West Texas market.
Retail Segment
Our retail segment consists of 248 owned and leased convenience store sites as of March 31, 2022, located primarily in West Texas and New Mexico. These convenience stores typically offer various grades of gasoline and diesel primarily under the Alon or Delek brand name and food products, food service, tobacco products, non-alcoholic and alcoholic beverages, general merchandise as well as money grams to the public, primarily under the 7-Eleven and DK or Alon brand names. Substantially all of the motor fuel sold through our retail segment is supplied by our Big Spring refinery, which is transferred to the retail segment at prices substantially determined by reference to published commodity pricing information. In November 2018, we terminated the license agreement with 7-Eleven, Inc. The terms of such agreement and subsequent amendments require the removal of all 7-Eleven branding on a store-by-store basis by December 31, 2023.
Significant Inter-segment Transactions
All inter-segment transactions have been eliminated in consolidation and consist primarily of the following:
refining segment refined product sales to the retail segment to be sold through the store locations;
refining segment sales of asphalt and refined product to entities included in corporate, other and eliminations;
logistics segment service fee revenue under service agreements with the refining segment based on the number of gallons sold and to share a portion of the margin achieved in return for providing marketing, sales and customer services;
logistics segment sales of wholesale finished product to our refining segment; and
logistics segment crude transportation, terminalling and storage fee revenue from our refining segment for the utilization of pipeline, terminal and storage assets.

10 |
dk-20220331_g3.jpg

Notes to Condensed Consolidated Financial Statements (Unaudited)
Business Segment Operating Performance
The following is a summary of business segment operating performance as measured by contribution margin for the period indicated (in millions):

 Three Months Ended March 31, 2022
Refining LogisticsRetailCorporate,
Other and Eliminations
Consolidated
Net revenues (excluding inter-segment fees and revenues)
$3,267.9 $82.8 $209.5 $898.9 $4,459.1 
Inter-segment fees and revenues 225.8 123.8  (349.6)— 
Operating costs and expenses:     
Cost of materials and other3,276.9 126.2 173.0 576.4 4,152.5 
Operating expenses (excluding depreciation and amortization presented below)119.9 18.1 22.7 6.2 166.9 
Segment contribution margin$96.9 $62.3 $13.8 $(33.3)139.7 
Income from equity method investments0.2 7.0  3.7 
Segment contribution margin and income (loss) from equity method investments$97.1 $69.3 $13.8 $(29.6)
Depreciation and amortization$52.8 $10.4 $3.5 $1.6 68.3 
General and administrative expenses
   53.1 
Other operating income, net   (28.4)
Operating income   $46.7 
Capital spending (excluding business combinations)$14.3 $9.1 $3.0 $6.5 $32.9 
 Three Months Ended March 31, 2021
Refining (1)
LogisticsRetailCorporate,
Other and Eliminations
Consolidated (1)
Net revenues (excluding inter-segment fees and revenues)
$1,584.5 $56.7 $174.8 $576.2 $2,392.2 
Inter-segment fees and revenues
155.6 96.2  (251.8)— 
Operating costs and expenses:     
Cost of materials and other1,615.0 81.1 136.5 340.2 2,172.8 
Operating expenses (excluding depreciation and amortization presented below)114.7 14.9 21.6 4.1 155.3 
Segment contribution margin$10.4 $56.9 $16.7 $(19.9)64.1 
Income from equity method investments0.2 4.0  0.6 
Segment contribution margin and income (loss) from equity method investments$10.6 $60.9 $16.7 $(19.3)
Depreciation and amortization$52.1 $10.7 $3.2 $2.5 68.5 
General and administrative expenses
    41.1 
Other operating expense, net    1.9 
Operating loss    $(47.4)
Capital spending (excluding business combinations)$57.8 $7.8 $0.8 $0.6 $67.0 
(1) Adjusted to reflect the retrospective change in accounting policy from LIFO to FIFO for certain inventories. See Note 6 for further discussion.
11 |
dk-20220331_g3.jpg

Notes to Condensed Consolidated Financial Statements (Unaudited)
Other Segment Information
Total assets by segment were as follows as of March 31, 2022 (in millions):
RefiningLogisticsRetailCorporate,
Other and Eliminations
Consolidated
Total assets$7,842.9 $935.3 $255.4 $(1,086.9)$7,946.7 
Less:
Inter-segment notes receivable(1,026.8)  1,026.8 — 
Inter-segment right of use lease assets(245.2)  245.2 — 
Total assets, excluding inter-segment notes receivable and right of use assets$6,570.9 $935.3 $255.4 $185.1 $7,946.7 
Property, plant and equipment and accumulated depreciation as of March 31, 2022 and depreciation expense by reporting segment for the three months ended March 31, 2022 are as follows (in millions):
RefiningLogisticsRetailCorporate,
Other and Eliminations
Consolidated
Property, plant and equipment$2,677.7 $724.9 $170.0 $102.4 $3,675.0 
Less: Accumulated depreciation(995.0)(276.6)(62.0)(67.4)(1,401.0)
Property, plant and equipment, net$1,682.7 $448.3 $108.0 $35.0 $2,274.0 
Depreciation expense for the three months ended March 31, 2022$51.1 $10.4 $3.3 $1.6 $66.4 
In accordance with Accounting Standards Codification ("ASC") 360, Property, Plant and Equipment ("ASC 360"), Delek evaluates the realizability of property, plant and equipment as events occur that might indicate potential impairment. There were no indicators of impairment related to our property, plant and equipment as of March 31, 2022 (see Note 1 for further discussion on the impact of the COVID-19 Pandemic).

Note 3 - Earnings (Loss) Per Share
Basic earnings per share (or "EPS") is computed by dividing net income (loss) by the weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income (loss), as adjusted for changes to income that would result from the assumed settlement of the dilutive equity instruments included in diluted weighted average common shares outstanding, by the diluted weighted average common shares outstanding. For all periods presented, we have outstanding various equity-based compensation awards that are considered in our diluted EPS calculation (when to do so would be dilutive), and is inclusive of awards disclosed in Note 15 to these condensed consolidated financial statements. For those instruments that are indexed to our common stock, they are generally dilutive when the market price of the underlying indexed share of common stock is in excess of the exercise price.
The following table sets forth the computation of basic and diluted earnings per share.
12 |
dk-20220331_g3.jpg

Notes to Condensed Consolidated Financial Statements (Unaudited)
Three Months Ended
March 31,
 2022
2021 (1)
Numerator:
Numerator for EPS
Net income (loss)$14.8 $(62.7)
Less: Income attributed to non-controlling interest8.2 7.3 
Numerator for basic and diluted EPS attributable to Delek $6.6 $(70.0)
Denominator:
Weighted average common shares outstanding (denominator for basic EPS)73,236,274 73,803,772 
Dilutive effect of stock-based awards412,992  
Weighted average common shares outstanding, assuming dilution (denominator for diluted EPS)73,649,266 73,803,772 
EPS:
Basic income (loss) per share$0.09 $(0.95)
Diluted income (loss) per share$0.09 $(