Acquisitions (Tables)

6 Months Ended

Jun. 30, 2015

Business Combination, Financial Information [Table Text Block]

The tables on the following pages present our results of operations, the effect of including the results of the Logistics Assets and the El Dorado Terminal and Tank Assets and the adjusted total amounts included in our condensed consolidated financial statements.

Condensed Combined Balance Sheet



	Delek Logistics Partners, LP			El Dorado Assets (El Dorado Assets Predecessor)			Tyler Assets (Tyler Assets Predecessor)		December 31, 2014
	(In thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	1,861		$	—		$	—	$	1,861
Accounts receivable	27,986			—			—		27,986
Inventory	10,316			—			—		10,316
Deferred tax assets	28			—			—		28
Other current assets	768			—			—		768
Total current assets	40,959			—			—		40,959
Property, plant and equipment:
Property, plant and equipment	288,045			8,267			11,776		308,088
Less: accumulated depreciation	(52,992		)	(317		)	—		(53,309		)
Property, plant and equipment, net	235,053			7,950			11,776		254,779
Goodwill	11,654			—			—		11,654
Intangible assets, net	16,520			—			—		16,520
Other non-current assets	7,374			—			—		7,374
Total assets	$	311,560		$	7,950		$	11,776	$	331,286
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	17,929		$	—		$	—	$	17,929
Accounts payable to related parties	628			—			—		628
Excise and other taxes payable	5,443			—			—		5,443
Accrued expenses and other current liabilities	1,588			—			—		1,588
Tank inspection liabilities	2,829			—			—		2,829
Pipeline release liabilities	1,899			—			—		1,899
Total current liabilities	30,316			—			—		30,316
Non-current liabilities:
Revolving credit facility	251,750			—			—		251,750
Asset retirement obligations	3,319			—			—		3,319
Deferred tax liabilities	231			—			—		231
Other non-current liabilities	5,889			—			—		5,889
Total non-current liabilities	261,189			—			—		261,189
Equity:
Predecessors division equity	—			7,950			11,776		19,726
Common unitholders - public (9,417,189 units issued and outstanding)	194,737			—			—		194,737
Common unitholders - Delek (2,799,258 units issued and outstanding)	(241,112		)	—			—		(241,112		)
Subordinated unitholders - Delek (11,999,258 units issued and outstanding)	73,515			—			—		73,515
General Partner unitholders - Delek (494,197 units issued and outstanding)	(7,085		)	—			—		(7,085		)
Total equity	20,055			7,950			11,776		39,781
Total liabilities and equity	$	311,560		$	7,950		$	11,776	$	331,286

Condensed Combined Statements of Operations



	Delek Logistics Partners, LP			El Dorado Assets (El Dorado Assets Predecessor)			Tyler Assets (Tyler Assets Predecessor)			Six Months Ended June 30, 2015
	(In thousands)
Net Sales	$	315,646		$	—		$	—		$	315,646
Operating costs and expenses:
Cost of goods sold	240,901			—			—			240,901
Operating expenses	21,408			167			—			21,575
General and administrative expenses	6,391			—			—			6,391
Depreciation and amortization	8,774			372			98			9,244
Gain on asset disposals	(18		)	—			—			(18		)
Total operating costs and expenses	277,456			539			98			278,093
Operating income (loss)	38,190			(539		)	(98		)	37,553
Interest expense, net	4,773			—			—			4,773
Loss on equity method investments	149			—			—			149
Total non-operating costs and expenses	4,922			—			—			4,922
Net income (loss) before income tax expense	33,268			(539		)	(98		)	32,631
Income tax expense	317			—			—			317
Net income (loss)	32,951			(539		)	(98		)	32,314
Less: loss attributable to Predecessors	—			(539		)	(98		)	(637		)
Net income attributable to partners	$	32,951		$	—		$	—		$	32,951



	Delek Logistics Partners, LP		El Dorado Assets (El Dorado Assets Predecessor)			Three Months Ended June 30, 2014 ⁽¹⁾
	(In thousands)
Net Sales	$	236,343	$	—		$	236,343
Operating costs and expenses:
Cost of goods sold	196,574		—			196,574
Operating expenses	9,544		175			9,719
General and administrative expenses	2,242		—			2,242
Depreciation and amortization	3,532		91			3,623
Loss on asset disposals	74		—			74
Total operating costs and expenses	211,966		266			212,232
Operating income (loss)	24,377		(266		)	24,111
Interest expense, net	2,342		—			2,342
Net income (loss) before income tax expense	22,035		(266		)	21,769
Income tax expense	281		—			281
Net income (loss)	21,754		(266		)	21,488
Less: loss attributable to Predecessors	—		(266		)	(266		)
Net income attributable to partners	$	21,754	$	—		$	21,754



	Delek Logistics Partners, LP		El Dorado Assets (El Dorado Assets Predecessor)			El Dorado Terminal and Tank Assets (El Dorado Predecessor)			Six Months Ended June 30, 2014 ⁽¹⁾
	(In thousands)
Net Sales	$	439,870	$	—		$	—		$	439,870
Operating costs and expenses:
Cost of goods sold	368,783		—			—			368,783
Operating expenses	18,080		352			783			19,215
General and administrative expenses	4,859		—			46			4,905
Depreciation and amortization	6,895		91			114			7,100
Loss on asset disposals	74		—			—			74
Total operating costs and expenses	398,691		443			943			400,077
Operating income (loss)	41,179		(443		)	(943		)	39,793
Interest expense, net	4,325		—			—			4,325
Net income (loss) before income tax expense	36,854		(443		)	(943		)	35,468
Income tax expense	428		—			—			428
Net income (loss)	36,426		(443		)	(943		)	35,040
Less: Loss attributable to Predecessors	—		(443		)	(943		)	(1,386		)
Net income attributable to partners	$	36,426	$	—		$	—		$	36,426

⁽¹⁾There were no revenues or expenses associated with the Tyler Assets Predecessor included in our condensed consolidated financial statements for the three and six months ended June 30, 2014 as the Tyler Assets were not fully constructed and were not placed into service until January 2015.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table summarizes the allocation of the aggregate purchase price for each of the third party acquisitions described above (in thousands):



	FTT Assets ⁽¹⁾			Greenville-Mount Pleasant Assets ⁽²⁾
Property, plant and equipment	$	11,145		$	4,829
Intangible assets	—			5,171
Inventory	—			1,125
Accounts receivable	1,901			—
Accounts payable	(1,121		)	—
Total	$	11,925		$	11,125

⁽¹⁾

During the six months ended June 30, 2015, we adjusted our previously disclosed purchase price allocation and certain of the acquisition date fair values in connection with working capital adjustments and an additional $0.4 million of consideration paid for additional assets. The property, plant and equipment, accounts receivable and accounts payable valuation are subject to change during the purchase price allocation period.


⁽²⁾	During the six months ended June 30, 2015, we adjusted our purchase price allocation and certain of the acquisition date fair values previously disclosed. The property, plant and equipment, intangible assets and inventory valuation are subject to change during the purchase price allocation period.

Business Acquisition, Pro Forma Information [Table Text Block]

Below are the unaudited pro forma consolidated results of operations of the Partnership for the three and six months ended June 30, 2014, as if these acquisitions had occurred on January 1, 2014 (in thousands):



	Three Months Ended		Six Months Ended
	June 30, 2014		June 30, 2014
FTT Assets:
Net sales	$	239,871	$	446,632
Net income	$	21,699	$	35,418
Greenville-Mount Pleasant Assets:
Net sales	$	236,516	$	440,215
Net income	$	21,379	$	34,822