Company: DK
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001694426-25-000060
Chunk: 61

Company: Delek US Holdings, Inc.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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 January 2, 2025. Our results of operations included revenue and net income of $22.9 million and $9.9 million, respectively, for the period from January 2, 2025, through March 31, 2025, related to these operations.This acquisition was accounted for using the acquisition method of accounting, whereby the purchase price is measured at acquisition date fair value of assets acquired and liabilities assumed. Determination of Purchase Price The table below presents the estimated purchase price (in millions): Base purchase price:$291.6 Less: Adjusted Net Working Capital (as defined in the Gravity Acquisition Agreement)3.8 Plus: Various closing adjustments5.4 Adjusted purchase price$300.8 Cash paid $209.3 Fair value of common units issued (1)91.5 Preliminary purchase price$300.8 (1)The increase from the $85.0 million base purchase price outlined in the purchase agreement for the common unit consideration was driven by an appreciation in the common unit price.

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Notes to Condensed Consolidated Financial Statements (unaudited)

Purchase Price AllocationThe following table summarizes the preliminary fair values of assets acquired and liabilities assumed in the Gravity Acquisition as of January 2, 2025 (in millions):Assets acquired:Cash and cash equivalents$5.3 Accounts receivables16.4 Inventories1.8 Other current assets1.7 Property, plant and equipment208.3 Operating lease right-of-use assets0.1 Other intangibles (1)82.6 Other non-current assets0.1 Total assets acquired316.3 Liabilities assumed:Accounts payable2.4 Accrued expenses and other current liabilities5.8 Current portion of operating lease liabilities0.1 Asset retirement obligations7.2 Total liabilities assumed15.5 Fair value of net assets acquired$300.8 (1)The acquired intangible assets amount includes the following identified intangibles:•Customer relationship intangible that is subject to amortization with a preliminary fair value of $50.7 million, which we estimate to be amortized over  10 to 25 years.•Rights-of-way intangibles are valued at $31.9 million, the majority of which have an indefinite life.These fair value estimates are preliminary and therefore, the final fair value of assets acquired and liabilities assumed and the resulting effect on our financial position may change once all necessary