Restructuring and Other Charges

12 Months Ended

Dec. 31, 2024

Restructuring and Related Activities [Abstract]

During the fiscal year 2022, we initiated a cost optimization plan to improve efficiencies and align our workforce with strategic activities and operations. The recorded costs include an accrual of $10.4 million and $0.9 million as of December 31, 2024 and December 31, 2023, respectively.

During the year ended December 31, 2024, we made the decision to idle the Crossett, Arkansas, Cleburne, Texas and New Albany, Mississippi biodiesel facilities, while exploring viable and sustainable alternatives. Those alternatives could include restarting if market conditions improve, marketing for sale or permanently closing any of the facilities. Our decision to idle these facilities was driven by the decline in the overall biodiesel market and aligns with our continued operational and cost optimization efforts. As a result, we conducted an evaluation of impairment and based on our review we recorded a $22.1 million impairment which included property, plant and equipment and right of use assets. In addition, $0.4 million of severance and benefit expenses were recognized in the year ended December 31, 2024.

During the year ended December 31, 2024, we made a strategic decision to abandon certain capital projects included in construction in progress that no longer fit our core objectives. As a result, we recognized a loss of $14.1 million in the year ended December 31, 2024, which is recorded in other operating income, net in the consolidated statements of income. In addition, we recognized impairment charges totaling $9.2 million related to certain pipeline assets because it's no longer probable these assets will be utilized.

During the year ended December 31, 2024, we recorded a bonus accrual and equity based compensation for certain employees, including executives, determined to be key to our planned go-forward operations and achievement of certain corporate and strategic milestones provided that they remain through various requisite service periods for a total of $12.3 million of which $8.3 million is recorded in general and administrative expenses and $4.0 million is recorded in operating expenses in the consolidated statements of income.

During the year ended December 31, 2023, Delek determined that leased crude oil tanks in Canada were not needed to support the future growth of its business. The exit of these leased crude oil tanks are intended to align with our continued operational and cost optimization efforts. We have the ability and intent to sublease these crude oil tanks for the remainder of the respective lease terms, however, the expected sublease has a lower rate than the head lease, resulting in a right-of-use asset impairment of $23.1 million.

We anticipate concluding our restructuring activities by the end of fiscal year 2026. Future cost estimates for these initiatives are continuing to be developed.

The detail of restructuring costs is as follows (in millions):


		Year Ended December 31, 2024
Type of Costs	Statement of Income Location	Refining		Logistics		Corporate, Other and Eliminations		Consolidated
Consulting fees, severance costs, bonus expense and equity based compensation	General and administrative expenses	$	—	$	—	$	13.0	$	13.0
Severance costs and bonus expense	Operating expenses	0.4		—		4.0		4.4
Impairment	Asset impairment	22.1		—		9.2		31.3
Asset write-off	Other operating income, net	14.1		—		—		14.1
Total		$	36.6	$	—	$	26.2	$	62.8


		Year Ended December 31, 2023
Type of Costs	Statement of Income Location	Refining		Logistics		Corporate, Other and Eliminations		Consolidated
Consulting fees and severance costs	General and administrative expenses	$	0.3	$	0.4	$	12.8	$	13.5
Other	Cost of materials and other	1.2		—		—		1.2
Impairment	Asset impairment	—		—		23.1		23.1
Total		$	1.5	$	0.4	$	35.9	$	37.8


		Year Ended December 31, 2022
Type of Costs	Statement of Income Location	Refining		Logistics		Corporate, Other and Eliminations		Consolidated
Consulting fees and severance costs	General and administrative expenses	$	—	$	—	$	12.5	$	12.5
Total		$	—	$	—	$	12.5	$	12.5