Company: DK
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001694426-25-000060
Chunk: 172

Company: Delek US Holdings, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 172
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31, 2025Feedstocks, raw materials and supplies$220.6 $129.3 $349.9 Refined products and blendstock230.3 272.3 502.6 Total$450.9 $401.6 $852.5 December 31, 2024Feedstocks, raw materials and supplies$246.5 $131.5 $378.0 Refined products and blendstock243.4 271.8 515.2 Total$489.9 $403.3 $893.2 (1) Refer to  Note 9 - Inventory Intermediation Obligations for further information.At March 31, 2025, we recorded a pre-tax inventory valuation reserve of $1.1 million due to a market price decline below our cost of certain inventory products.  At December 31, 2024, we recorded a pre-tax inventory valuation reserve of $0.9 million.  For the three months ended March 31, 2025 and 2024, we recognized a net (increase) reduction in cost of materials and other in the accompanying condensed consolidated statements of income related to the change in pre-tax inventory valuation of $(0.2) million and $8.8 million, respectively.

18 |

Notes to Condensed Consolidated Financial Statements (unaudited)

9. Inventory Intermediation Obligations

The following table summarizes our outstanding obligations under our Inventory Intermediation Agreement (in millions):As of March 31, 2025As of December 31, 2024Obligations under Inventory Intermediation AgreementObligations related to Base Layer Volumes$433.6 $408.7 Current portion— —  Total obligations under Inventory Intermediation Agreement$433.6 $408.7 Other payable (receivable) for monthly activity true-up $5.6 $20.2 Included in the Inventory Intermediation Agreement are cost of financing associated with the value of the inventory and other periodic charges, which we include in interest expense, net in the condensed consolidated statements of income. In addition to the cost of financing charges, we have other intermediation fees which include market structure settlements, where we may pay or receive amounts based on market conditions and volumes subject to the intermediation agreement. These market structure settlements are recorded in cost of materials and other in the condensed consolidated statements of income. The following