Acquisitions (Tables)

9 Months Ended

Sep. 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
Tank inspection liabilities	2,829			—			—		2,829
Pipeline release liabilities	1,899			—			—		1,899
Accrued expenses and other current liabilities	1,588			—			—		1,588
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)			Nine Months Ended September 30, 2015
	(In thousands)
Net Sales	$	480,738		$	—		$	—		$	480,738
Operating costs and expenses:
Cost of goods sold	365,286			—			—			365,286
Operating expenses	33,024			167			—			33,191
General and administrative expenses	9,094			—			—			9,094
Depreciation and amortization	13,315			372			98			13,785
Gain on asset disposals	(18		)	—			—			(18		)
Total operating costs and expenses	420,701			539			98			421,338
Operating income (loss)	60,037			(539		)	(98		)	59,400
Interest expense, net	7,616			—			—			7,616
Loss on equity method investments	442			—			—			442
Total non-operating costs and expenses	8,058			—			—			8,058
Net income (loss) before income tax expense	51,979			(539		)	(98		)	51,342
Income tax expense	426			—			—			426
Net income (loss)	51,553			(539		)	(98		)	50,916
Less: loss attributable to Predecessors	—			(539		)	(98		)	(637		)
Net income attributable to partners	$	51,553		$	—		$	—		$	51,553



	Delek Logistics Partners, LP		El Dorado Assets (El Dorado Assets Predecessor)			Three Months Ended September 30, 2014 ⁽¹⁾
	(In thousands)
Net Sales	$	228,036	$	—		$	228,036
Operating costs and expenses:
Cost of goods sold	194,133		—			194,133
Operating expenses	10,213		148			10,361
General and administrative expenses	2,453		—			2,453
Depreciation and amortization	3,749		98			3,847
Total operating costs and expenses	210,548		246			210,794
Operating income (loss)	17,488		(246		)	17,242
Interest expense, net	2,226		—			2,226
Net income (loss) before income tax expense	15,262		(246		)	15,016
Income tax expense	177		—			177
Net income (loss)	15,085		(246		)	14,839
Less: loss attributable to Predecessors	—		(246		)	(246		)
Net income attributable to partners	$	15,085	$	—		$	15,085



	Delek Logistics Partners, LP		El Dorado Assets (El Dorado Assets Predecessor)			El Dorado Terminal and Tank Assets (El Dorado Predecessor)			Nine Months Ended September 30, 2014 ⁽¹⁾
	(In thousands)
Net Sales	$	667,906	$	—		$	—		$	667,906
Operating costs and expenses:
Cost of goods sold	562,916		—			—			562,916
Operating expenses	28,293		500			783			29,576
General and administrative expenses	7,312		—			46			7,358
Depreciation and amortization	10,644		189			114			10,947
Loss on asset disposals	74		—			—			74
Total operating costs and expenses	609,239		689			943			610,871
Operating income (loss)	58,667		(689		)	(943		)	57,035
Interest expense, net	6,551		—			—			6,551
Net income (loss) before income tax expense	52,116		(689		)	(943		)	50,484
Income tax expense	605		—			—			605
Net income (loss)	51,511		(689		)	(943		)	49,879
Less: loss attributable to Predecessors	—		(689		)	(943		)	(1,632		)
Net income attributable to partners	$	51,511	$	—		$	—		$	51,511

⁽¹⁾There were no expenses associated with the Tyler Assets Predecessor included in our condensed consolidated financial statements for the three and nine months ended September 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 nine months ended September 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 nine months ended September 30, 2015, we finalized our purchase price allocation and adjusted certain of the acquisition date fair values previously disclosed.

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 nine months ended September 30, 2014, as if these acquisitions had independently occurred on January 1, 2014 (in thousands):



	Three Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2014
FTT Assets:
Net sales	$	231,699	$	678,331
Net income	$	15,070	$	50,488
Greenville-Mount Pleasant Assets:
Net sales	$	228,208	$	668,423
Net income	$	14,729	$	49,551