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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 September 30, 2023
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
dklogoa36.jpg
35-2581557
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
310 Seven Springs Way, Suite 500
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 November 1, 2023, there were 63,933,521 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 September 30, 2023
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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)
September 30, 2023December 31, 2022
ASSETS  
Current assets: 
Cash and cash equivalents$901.7 $841.3 
Accounts receivable, net1,166.9 1,234.4 
Inventories, net of inventory valuation reserves1,179.2 1,518.5 
Other current assets85.6 122.7 
Total current assets3,333.4 3,716.9 
Property, plant and equipment:  
Property, plant and equipment4,603.1 4,349.0 
Less: accumulated depreciation(1,768.3)(1,572.6)
Property, plant and equipment, net2,834.8 2,776.4 
Operating lease right-of-use assets160.3 179.5 
Goodwill744.3 744.3 
Other intangibles, net300.4 315.6 
Equity method investments371.2 359.7 
Other non-current assets124.6 100.4 
Total assets$7,869.0 $8,192.8 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$2,006.8 $1,745.6 
Current portion of long-term debt29.5 74.5 
Current portion of obligation under Inventory Intermediation Agreement 49.9 
Current portion of operating lease liabilities49.9 49.6 
Accrued expenses and other current liabilities916.5 1,166.8 
Total current liabilities3,002.7 3,086.4 
Non-current liabilities:  
Long-term debt, net of current portion2,608.5 2,979.2 
Obligation under Inventory Intermediation Agreement502.2 491.8 
Environmental liabilities, net of current portion111.6 111.5 
Asset retirement obligations42.9 41.8 
Deferred tax liabilities304.2 266.5 
Operating lease liabilities, net of current portion106.8 122.4 
Other non-current liabilities33.1 23.7 
Total non-current liabilities3,709.3 4,036.9 
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, 82,241,519 shares and 84,509,517 shares issued at September 30, 2023 and December 31, 2022, respectively
0.8 0.9 
Additional paid-in capital1,116.4 1,134.1 
Accumulated other comprehensive loss(5.3)(5.2)
Treasury stock, 17,575,527 shares, at cost, at September 30, 2023 and December 31, 2022, respectively
(694.1)(694.1)
Retained earnings619.9 507.9 
Non-controlling interests in subsidiaries119.3 125.9 
Total stockholders’ equity1,157.0 1,069.5 
Total liabilities and stockholders’ equity$7,869.0 $8,192.8 
See accompanying notes to the condensed consolidated financial statements
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Financial Statements

Delek US Holdings, Inc.
Condensed Consolidated Statements of Income (unaudited)
(In millions, except share and per share data)
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Net revenues$4,748.4 $5,324.9 $12,868.3 $15,766.6 
Cost of sales: 
Cost of materials and other4,122.1 4,916.0 11,328.3 14,151.1 
Operating expenses (excluding depreciation and amortization presented below)217.7 201.3 577.2 536.4 
Depreciation and amortization83.7 66.5 243.1 192.0 
Total cost of sales4,423.5 5,183.8 12,148.6 14,879.5 
Operating expenses related to retail and wholesale business (excluding depreciation and amortization presented below)22.7 28.2 80.8 89.6 
General and administrative expenses72.0 59.3 219.3 231.8 
Depreciation and amortization7.6 6.4 21.0 17.2 
Other operating income, net(2.1)(5.8)(19.0)(44.5)
Total operating costs and expenses4,523.7 5,271.9 12,450.7 15,173.6 
Operating income224.7 53.0 417.6 593.0 
Interest expense, net82.3 50.7 239.2 132.7 
Income from equity method investments(27.0)(17.8)(67.1)(44.4)
Other expense (income), net1.8 (0.7)(4.8)(3.0)
Total non-operating expense, net57.1 32.2 167.3 85.3 
Income before income tax expense167.6 20.8 250.3 507.7 
Income tax expense31.5 4.0 43.5 107.5 
Net income136.1 16.8 206.8 400.2 
Net income attributed to non-controlling interests7.4 9.4 22.1 24.4 
Net income attributable to Delek$128.7 $7.4 $184.7 $375.8 
Basic income per share$1.98 $0.11 $2.80 $5.26 
Diluted income per share$1.97 $0.10 $2.78 $5.21 
Weighted average common shares outstanding:  
Basic64,889,504 70,471,645 65,864,141 71,494,332 
Diluted65,464,970 71,109,364 66,372,335 72,148,638 

See accompanying notes to the condensed consolidated financial statements
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Financial Statements

Delek US Holdings, Inc.
Condensed Consolidated Statements of Comprehensive Income (unaudited)
(In millions)
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Net income$136.1 $16.8 $206.8 $400.2 
Other comprehensive loss:  
Other loss, net of taxes (0.1)(0.1)(0.2)
Total other comprehensive loss (0.1)(0.1)(0.2)
Comprehensive income$136.1 $16.7 $206.7 $400.0 
Comprehensive income attributable to non-controlling interest7.4 9.4 22.1 24.4 
Comprehensive income attributable to Delek$128.7 $7.3 $184.6 $375.6 

See accompanying notes to the condensed consolidated financial statements

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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 September 30, 2023
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossRetained EarningsTreasury StockNon-Controlling Interest in SubsidiariesTotal Stockholders' Equity
SharesAmountSharesAmount
Balance at June 30, 2023
83,150,295$0.8 $1,121.8 $(5.3)$518.1 (17,575,527)$(694.1)$121.6 $1,062.9 
Net income— — — 128.7 — — 7.4 136.1 
Common stock dividends ($0.235 per share)
— — — (15.2)— — — (15.2)
Distributions to non-controlling interests— — — — — — (9.7)(9.7)
Equity-based compensation expense— 8.0 — — — — 0.2 8.2 
Repurchase of common stock(981,690)— (13.3)— (11.7)— — — (25.0)
Taxes paid due to the net settlement of equity-based compensation— (0.7)— — — — (0.3)(1.0)
Exercise of equity-based awards48,154— — — — — — — — 
Other24,760— 0.6 — — — — 0.1 0.7 
Balance at September 30, 2023
82,241,519 $0.8 $1,116.4 $(5.3)$619.9 (17,575,527)$(694.1)$119.3 $1,157.0 

Three Months Ended September 30, 2022
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossRetained EarningsTreasury StockNon-Controlling Interest in SubsidiariesTotal Stockholders' Equity
SharesAmountSharesAmount
Balance at June 30, 2022
88,610,583$0.9 $1,159.1 $(3.9)$753.0 (17,575,527)$(694.1)$122.4 $1,337.4 
Net income— — — 7.4 — — 9.4 16.8 
Common stock dividends ($0.40 per share)
— — — (28.3)— — — (28.3)
Distributions to non-controlling interests— — — — — — (9.2)(9.2)
Equity-based compensation expense— 7.7 — — — — 0.1 7.8 
Repurchase of common stock(1,435,602)— (40.0)— — — — — (40.0)
Taxes paid due to the net settlement of equity-based compensation— (1.1)— — — — — (1.1)
Exercise of equity-based awards53,522— — — — — — — — 
Other— — (0.1)(0.3)— — — (0.4)
Balance at September 30, 2022
87,228,503 $0.9 $1,125.7 $(4.0)$731.8 (17,575,527)$(694.1)$122.7 $1,283.0 




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Financial Statements

Delek US Holdings, Inc.
Condensed Consolidated Statements of Changes in Stockholders' Equity (unaudited)
(In millions, except share and per share data)
Nine Months Ended September 30, 2023
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossRetained EarningsTreasury SharesNon-Controlling Interest in SubsidiariesTotal Stockholders' Equity
SharesAmountSharesAmount
Balance at December 31, 202284,509,517 $0.9 $1,134.1 $(5.2)$507.9 (17,575,527)$(694.1)$125.9 $1,069.5 
Net income— — — — 184.7 — — 22.1 206.8 
Common stock dividends ($0.685 per share)
— — — — (44.9)— — — (44.9)
Distributions to non-controlling interests— — — — — — — (28.8)(28.8)
Equity-based compensation expense— — 20.0 — — — — 0.5 20.5 
Repurchase of common stock(2,793,317)(0.1)(37.7)— (27.6)— — — (65.4)
Taxes paid due to the net settlement of equity-based compensation— — (4.1)— — — — (0.5)(4.6)
Exercise of equity-based awards409,993 — — — — — — — — 
Other115,326 — 4.1 (0.1)(0.2)— — 0.1 3.9 
Balance at September 30, 202382,241,519 $0.8 $1,116.4 $(5.3)$619.9 (17,575,527)$(694.1)$119.3 $1,157.0 
Nine Months Ended September 30, 2022
Common StockAdditional Paid-in CapitalAccumulated Other Comprehensive LossRetained EarningsTreasury StockNon-Controlling Interest in SubsidiariesTotal Stockholders' Equity
SharesAmountSharesAmount
Balance at December 31, 202191,772,080 $0.9 $1,206.5 $(3.8)$384.7 (17,575,527)$(694.1)$119.8 $1,014.0 
Net income— — — — 375.8 — — 24.4 400.2 
Common stock dividends ($0.40 per share)
— — — — (28.3)— — — (28.3)
Equity-based compensation expense— — 20.1 — — — — 0.3 20.4 
Distributions to non-controlling interests— — — — — — — (26.9)(26.9)
Sale of Delek Logistics common limited partner units, net— — 8.5 — — — — 5.1 13.6 
Repurchase of common stock(1,435,602)— (40.0)— — — — — (40.0)
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— — (5.4)— — — — — (5.4)
Exercise of equity-based awards389,293 — — — — — — — — 
Other— — — (0.2)(0.4)— — — (0.6)
Balance at September 30, 202287,228,503 $0.9 $1,125.7 $(4.0)$731.8 (17,575,527)$(694.1)$122.7 $1,283.0 

See accompanying notes to the condensed consolidated financial statements
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Financial Statements

Delek US Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited)
(In millions)
Nine Months Ended September 30,
20232022
Cash flows from operating activities:
Net income$206.8 $400.2 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization264.1 209.2 
Non-cash lease expense44.2 48.5 
Deferred income taxes24.9 95.6 
Income from equity method investments(67.1)(44.4)
Dividends from equity method investments35.8 26.3 
Non-cash lower of cost or market/net realizable value adjustment(6.2)19.1 
Equity-based compensation expense20.5 20.4 
Other 6.5 10.4 
Changes in assets and liabilities:
Accounts receivable78.6 (230.0)
Inventories and other current assets371.5 (419.8)
Fair value of derivatives(8.6)(56.2)
Accounts payable and other current liabilities54.6 524.8 
Obligation under Inventory Intermediation Agreements(97.5)108.7 
Non-current assets and liabilities, net(5.3)3.3 
Net cash provided by operating activities922.8 716.1 
Cash flows from investing activities:  
Acquisition of 3 Bear (625.4)
Equity method investment contributions (0.1)
Distributions from equity method investments10.5 1.7 
Purchases of property, plant and equipment(338.3)(192.8)
Purchase of equity securities(11.0) 
Purchases of intangible assets(2.6)(4.5)
Proceeds from sale of property, plant and equipment1.3 1.2 
Insurance proceeds1.5  
Net cash used in investing activities(338.6)(819.9)
Cash flows from financing activities:
Proceeds from long-term revolvers2,615.4 1,571.4 
Payments on long-term revolvers(3,019.4)(1,022.5)
Payments on term debt(18.4)(38.9)
Proceeds from product financing agreements908.2 744.6 
Repayments of product financing agreements(922.6)(704.6)
Proceeds from Inventory Intermediation Agreement32.2  
Proceeds from termination of Supply & Offtake Obligation25.8  
Taxes paid due to the net settlement of equity-based compensation(4.6)(5.4)
Repurchase of common stock(65.4)(40.0)
Distribution to non-controlling interest(28.8)(26.9)
Proceeds from sale of Delek Logistics common limited partner units 16.4 
Purchase of Delek common stock from IEP Energy Holding LLC (64.0)
Dividends paid(44.9)(28.3)
Deferred financing costs paid(1.3)(0.7)
Net cash (used in) provided by financing activities(523.8)401.1 
Net increase in cash and cash equivalents60.4 297.3 
Cash and cash equivalents at the beginning of the period841.3 856.5 
Cash and cash equivalents at the end of the period$901.7 $1,153.8 
Delek US Holdings, Inc.
Condensed Consolidated Statements of Cash Flows (unaudited) (Continued)
(In millions)

Nine Months Ended September 30,
20232022
Supplemental disclosures of cash flow information:  
Cash paid during the period for:  
Interest, net of capitalized interest of $3.2 million and $1.5 million in the 2023,and 2022 periods, respectively
$232.3 113.5 
Income taxes$8.3 $26.5 
Non-cash investing activities:
Decrease in accrued capital expenditures$(36.7)$(10.5)
Non-cash financing activities:
Non-cash lease liability arising from obtaining right-of-use assets during the period$28.2 $17.5 

See accompanying notes to the condensed consolidated financial statements
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Notes to Condensed Financial Statements (Unaudited)
Delek US Holdings, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited)
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 March 1, 2023 (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, 2022 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"). On June 1, 2022, DKL Delaware Gathering, LLC, a subsidiary of the Delek Logistics, acquired 100% of the limited liability company interests in 3 Bear Delaware Holding – NM, LLC ("3 Bear") from 3 Bear Energy – New Mexico LLC (subsequently renamed to Delek Delaware Gathering ("Delaware Gathering")), related to their crude oil and natural gas gathering, processing and transportation businesses, as well as water disposal and recycling operations, located in the Delaware Basin of New Mexico (the "Delaware Gathering Acquisition"). See Note 2 - Acquisitions for additional information. 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. 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.
Reclassifications
Certain prior period amounts have been reclassified in order to conform to the current period presentation.
New Accounting Pronouncements Adopted During 2023
ASU 2023 -03 , Presentation of Financial Statements (Topic 205), Income Statement - Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation - Stock Compensation (Topic 718)
In July 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-03, Presentation of Financial Statements (Topic 205), Income Statement-Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation-Stock Compensation (Topic 718) (“ASU 2023-03”). This ASU amends or supersedes various SEC paragraphs within the FASB Accounting Standards Codification to conform to past SEC announcements and guidance issued by the SEC. ASU 2023-03 does not provide any new guidance, so there is no transition or effective date. We adopted ASU 2023-03 in July 2023. There was no material impact on our condensed consolidated financial statements.
Accounting Pronouncements Not Yet Adopted
ASU 2023-06, Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative
In October 2023, the FASB issued ASU 2023-06 Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). The main provision of ASU 2023-06 is to clarify or improve disclosure and presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the FASB accounting standard codification with the SEC's regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated statements, but does not currently expect adopting this new guidance will have a material impact on its consolidated financial statements and related disclosures.
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Notes to Condensed Financial Statements (Unaudited)
2. Acquisitions
Delek Delaware Gathering (formally 3 Bear)
Delek Logistics completed the Delaware Gathering Acquisition on June 1, 2022 (the "Acquisition Date"), in which it acquired crude oil and natural gas gathering, processing and transportation and storage operations, as well as water disposal and recycling operations, located in the Delaware Basin of New Mexico.
The purchase price for Delaware Gathering was $628.3 million. The Delaware Gathering Acquisition was financed through a combination of cash on hand and borrowings under the Delek Logistics' Revolving Facility (as discussed in Note 9 of these consolidated financial statements).
For the three and nine months ended September 30, 2023, we incurred no incremental direct acquisition and integration costs. For the three and nine months ended September 30, 2022, we incurred $4.2 million and $10.6 million, respectively, in incremental direct acquisition and integration costs that principally consist of legal, advisory and other professional fees. Such costs are included in general and administrative expenses in the accompanying condensed consolidated statements of income for these periods.
The Delaware Gathering Acquisition was accounted for using the acquisition method of accounting, whereby the purchase price was allocated to the tangible and intangible assets acquired and the liabilities assumed based on their fair values. The excess of the consideration paid over the fair value of the net assets acquired was recorded as goodwill.
Determination of Purchase Price
The table below represents the purchase price (in millions):
Base purchase price:$624.7 
Add: closing net working capital (as defined in the 3 Bear Purchase Agreement)
3.6 
Less: closing indebtedness (as defined in the 3 Bear Purchase Agreement)
(80.6)
Cash paid for the adjusted purchase price547.7 
Cash paid to payoff 3 Bear credit agreement (as defined in the 3 Bear Purchase Agreement)80.6 
Purchase price$628.3 
Purchase Price Allocation
The following table summarizes the final fair values of assets acquired and liabilities assumed in the Delaware Gathering Acquisition as of June 1, 2022 (in millions):
Assets acquired:
Cash and cash equivalents$2.7 
Accounts receivables, net28.9 
Inventories1.8 
Other current assets1.0 
Property, plant and equipment382.8 
Operating lease right-of-use assets7.4 
Goodwill14.8 
Other intangibles, net (1)
223.5 
Other non-current assets0.5 
Total assets acquired663.4 
Liabilities assumed:
Accounts payable8.0 
Accrued expenses and other current liabilities22.4 
Current portion of operating lease liabilities1.0 
Asset retirement obligations2.3 
Operating lease liabilities, net of current portion1.4 
Total liabilities assumed35.1 
Fair value of net assets acquired$628.3 
(1)The acquired intangible assets amount includes the following identified intangibles:
Customer relationships intangible that is subject to amortization with a preliminary fair value of $210.0 million, which will be amortized over an 11.6-year useful life.
Rights-of-way intangible that is subject to amortization with a preliminary fair value of $13.5 million, which will be amortized over the weighted-average useful life of 25.4 years.
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Notes to Condensed Financial Statements (Unaudited)
The fair value of property, plant and equipment was based on the combination of the cost and market approaches. Key assumptions in the cost approach include determining the replacement cost by evaluating recently published data and adjusting replacement cost for physical deterioration, functional and economic obsolescence. We used the market approach to measure the value of certain assets through an analysis of recent sales or offerings of comparable properties.
The fair value of customer relationships was based on the income approach. Key assumptions in the income approach include projected revenue attributable to customer relationships, operating margins and discount rates.
The fair values discussed above were based on significant inputs that are not observable in the market and, therefore, represent Level 3 measurements.
The fair values of all other current assets and liabilities were equivalent to their carrying values due to their short-term nature.
The goodwill recognized in the Delaware Gathering Acquisition is primarily attributable to enhancing our third-party revenues, further diversification of our customer and product mix, expanding our footprint into the Delaware basin and bolstering our Environmental, Social and Governance ("ESG") optionality through furthering carbon capture opportunities and greenhouse gas reduction projects currently underway. This goodwill is deductible for income tax purposes. Goodwill related to the Delaware Gathering Acquisition is included in the logistics segment.
Unaudited Pro Forma Financial Information
The following table summarizes the unaudited pro forma financial information of the Company assuming the Delaware Gathering Acquisition had occurred on January 1, 2022. The unaudited pro forma financial information has been adjusted to give effect to certain pro forma adjustments that are directly related to the Delaware Gathering Acquisition based on available information and certain assumptions that management believes are factually supportable. The most significant pro forma adjustments relate to (i) incremental interest expense and amortization of deferred financing costs associated with revolving credit facility borrowings incurred in connection with the Delaware Gathering Acquisition, (ii) incremental depreciation resulting from the estimated fair values of acquired property, plant and equipment, (iii) incremental amortization resulting from the estimated fair values of acquired customer relationships intangible (iv) accounting policy alignment, and (v) transaction costs. The unaudited pro forma financial information excludes any expected cost savings or other synergies as a result of the Delaware Gathering Acquisition. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have been achieved had the Delaware Gathering Acquisition been effective as of the dates presented, nor is it indicative of future operating results of the combined company. Actual results may differ significantly from the unaudited pro forma financial information.
Three Months Ended September 30, 2022
Nine Months Ended September 30, 2022
(in millions, except per share data)
Net sales$5,324.9 $15,865.2 
Net income attributable to Delek$10.1 $374.1 
Net income per share:
Basic income per share$0.14 $5.23 
Diluted income per share$0.14 $5.19 
3. 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 10); and
intercompany eliminations.
During the fourth quarter 2022, we realigned our reportable segments for financial reporting purposes to reflect changes in the manner in which our chief operating decision maker, or CODM, assesses financial information for decision-making purposes. The change primarily represents reporting the operating results of wholesale crude operations within the refining segment. Prior to this change, wholesale crude operations were reported as part of corporate, other and eliminations. While this reporting change did not change our consolidated results, segment data for previous years has been restated and is consistent with the current year presentation throughout the financial statements and the accompanying notes.
The disaggregated financial results for the reporting segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The CODM evaluates performance based upon EBITDA attributable to Delek. We define EBITDA attributable to Delek for any period as net income (loss) attributable to Delek plus interest expense, income tax expense (benefit), depreciation and amortization. Segment EBITDA should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered alternatives to net income (loss), which is the most directly comparable financial measure to EBITDA that is in accordance with U.S. GAAP. Segment EBITDA, as determined and measured by us, should also not be compared to similarly titled measures reported by other companies.
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Notes to Condensed Financial Statements (Unaudited)
Assets by segment are not a measure used to assess the performance of the Company by the CODM and thus are not disclosed.
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 September 30, 2023, including the following:
Tyler, Texas refinery (the "Tyler refinery");
El Dorado, Arkansas refinery (the "El Dorado refinery");
Big Spring, Texas refinery (the "Big Spring refinery"); and
Krotz Springs, Louisiana refinery (the "Krotz Springs refinery").
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.
Logistics Segment
Our logistics segment owns and operates crude oil, refined products and natural gas logistics and marketing assets as well as water disposal and recycling assets. The logistics segment generates revenue by charging fees for gathering, transporting and storing crude oil and natural gas, marketing, distributing, transporting and storing intermediate and refined products and disposing and recycling water in select regions of the southeastern United States, the Delaware Basin in New Mexico and West Texas for our refining segment and third parties, and sales of wholesale products in the West Texas market. The operating results and assets acquired in the Delaware Gathering Acquisition have been included in the logistics segment since June 1, 2022.
Retail Segment
Our retail segment consists of 250 owned and leased convenience store sites as of September 30, 2023, located primarily in West Texas and New Mexico. These convenience stores typically offer various grades of fuel, food and beverage products, general merchandise, and certain food and other services. Substantially all of the motor fuel sold through our retail segment is supplied by our Big Spring refinery.
Business Segment Operating Performance
The following is a summary of business segment operating performance as measured by EBITDA attributable to Delek for the period indicated (in millions):
 Three Months Ended September 30, 2023
(In millions)RefiningLogisticsRetailCorporate,
Other and Eliminations
Consolidated
Net revenues (excluding intercompany fees and revenues)$4,392.4 $119.5 $236.5 $ $4,748.4 
Inter-segment fees and revenues232.1 156.4  (388.5)— 
Total revenues$4,624.5 $275.9 $236.5 $(388.5)$4,748.4 
Segment EBITDA attributable to Delek$285.1 $96.5 $16.2 $(64.0)$333.8 
Depreciation and amortization(60.1)(24.6)(3.6)(3.0)(91.3)
Interest expense, net(12.0)(37.0)0.1 (33.4)(82.3)
Income tax expense(31.5)
Net income attributable to Delek$128.7 
Income from equity method investments$0.2 $9.3 $ $17.5 $27.0 
Capital spending (excluding business combinations)$20.2 $13.1 $8.0 $7.0 $48.3 
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Notes to Condensed Financial Statements (Unaudited)
 Three Months Ended September 30, 2022
(In millions)RefiningLogisticsRetailCorporate,
Other and Eliminations
Consolidated
Net revenues (excluding intercompany fees and revenues)$4,904.5 $166.9 $253.1 $0.4 $5,324.9 
Inter-segment fees and revenues262.9 127.2  (390.1)— 
Total revenues$5,167.4 $294.1 $253.1 $(389.7)$5,324.9 
Segment EBITDA attributable to Delek$90.3 $87.3 $13.5 $(56.1)$135.0 
Depreciation and amortization(49.2)(19.6)(2.6)(1.5)(72.9)
Interest expense, net(0.2)(22.6) (27.9)(50.7)
Income tax expense(4.0)
Net income attributable to Delek$7.4 
Income from equity method investments$0.1 $8.6 $ $9.1 $17.8 
Capital spending (excluding business combinations)$22.7 $32.2 $13.6 $12.3 $80.8 

 Nine Months Ended September 30, 2023
(In millions)RefiningLogisticsRetailCorporate,
Other and Eliminations
Consolidated
Net revenues (excluding intercompany fees and revenues)$11,842.2 $351.9 $674.2 $ $12,868.3 
Inter-segment fees and revenues629.3 414.4  (1,043.7)— 
Total revenues$12,471.5 $766.3 $674.2 $(1,043.7)$12,868.3 
Segment EBITDA attributable to Delek$587.7 $278.8 $37.6 $(172.6)$731.5 
Depreciation and amortization(176.5)(69.4)(8.9)(9.3)(264.1)
Interest expense, net(33.2)(104.6)(0.1)(101.3)(239.2)
Income tax expense(43.5)
Net income attributable to Delek$184.7 
Income from equity method investments$0.7 $22.9 $ $43.5 $67.1 
Capital spending (excluding business combinations)$197.3 $68.6 $16.0 $19.7 $301.6 
 Nine Months Ended September 30, 2022
(In millions)RefiningLogisticsRetailCorporate,
Other and Eliminations
Consolidated
Net revenues (excluding intercompany fees and revenues)$14,633.6 $392.1 $739.7 $1.2 $15,766.6 
Inter-segment fees and revenues801.0 375.3  (1,176.3)— 
Total revenues$15,434.6 $767.4 $739.7 $(1,175.1)$15,766.6 
Segment EBITDA attributable to Delek$758.2 $214.1 $36.3 $(183.4)$825.2 
Depreciation and amortization(151.9)(43.3)(9.3)(4.7)(209.2)
Interest expense, net(2.5)(53.6) (76.6)(132.7)
Income tax expense(107.5)
Net income attributable to Delek$375.8 
Income from equity method investments$0.5 $22.7 $ $21.2 $44.4 
Capital spending (excluding business combinations)$56.0 $68.0 $22.6 $27.5 $174.1 
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Notes to Condensed Financial Statements (Unaudited)
4. Earnings Per Share
Basic earnings per share (or "EPS") is computed by dividing net income by the weighted average common shares outstanding. Diluted earnings per share is computed by dividing net income, 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 16 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.
Three Months Ended September 30,Nine Months Ended September 30,
202320222023
2022
Numerator:
Numerator for EPS
Net income$136.1 $16.8 $206.8 $400.2 
Less: Income attributed to non-controlling interest7.4 9.4 22.1 24.4 
Numerator for basic and diluted EPS attributable to Delek$128.7 $7.4 $184.7 $375.8 
Denominator:
Weighted average common shares outstanding (denominator for basic EPS)64,889,504 70,471,645 65,864,141 71,494,332 
Dilutive effect of stock-based awards575,466 637,719 508,194 654,306 
Weighted average common shares outstanding, assuming dilution (denominator for diluted EPS)65,464,970 71,109,364 66,372,335 72,148,638 
EPS:
Basic income per share$1.98 $0.11 $2.80 $5.26 
Diluted income per share$1.97 $0.10 $2.78 $5.21 
The following equity instruments were excluded from the diluted weighted average common shares outstanding because their effect would be anti-dilutive:
Antidilutive stock-based compensation (because average share price is less than exercise price)1,254,610 2,138,130 1,756,314 2,380,376