Company: DK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001694426-25-000112
Chunk: 197

Company: Delek US Holdings, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 197
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489.9 $403.3 $893.2 (1) Refer to Note 9 - Inventory Intermediation Obligations for further information.At June 30, 2025, we recorded a pre-tax inventory valuation reserve of $1.0 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.  We recognized a net reduction (increase) in cost of materials and other in the accompanying condensed consolidated statements of income related to the change in pre-tax inventory valuation of nominal amount and $(0.1) million for the three and six months ended June 30, 2025, respectively, $1.9 million and $10.7 million for the three and six months ended June 30, 2024, respectively.

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Notes to Condensed Consolidated Financial Statements (unaudited)

9. Inventory Intermediation Obligations

The following table summarizes our outstanding obligations under our Inventory Intermediation Agreement (as defined below) (in millions):As of June 30, 2025As of December 31, 2024Obligations under Inventory Intermediation AgreementObligations related to Base Layer Volumes$388.4 $408.7 Current portion— —  Total obligations under Inventory Intermediation Agreement$388.4 $408.7 Other payable (receivable) for monthly activity true-up $18.3 $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 table summarizes these fees (in millions):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net fees and expenses:Inventory intermediation fees$10.1 $10.1 $21.5 $4.5 Interest expense, net$12.5 $15.0 $25.6 $31.5 On December 22