Company: DK
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001694426-25-000112
Chunk: 216

Company: Delek US Holdings, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 216
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 during the three and six months ended June 30, 2024. An additional $10.6 million of other recoveries was recognized as a gain, related to business interruption claims, during the three and six months ended June 30, 2024. Such gains are included in other operating income, net in the condensed consolidated statements of income.

14. Income Taxes

Under ASC 740, Income Taxes (“ASC 740”), we generally use an estimated annual tax rate to record income taxes. For interim financial reporting, except in specified cases, the quarterly income tax provision aligns with the estimated annual tax rate, updated each quarter based on revised full-year pre-tax book earnings. In certain situations, the estimated annual tax rate may distort the interim income tax provision due to significant permanent differences. In such cases, the interim income tax provision is based on the year-to-date effective tax rate, adjusting for permanent differences proportionally. In the three and six months ended June 30, 2025, income taxes were calculated based on the estimated annual effective tax rate versus the year-to-date effective tax rate. In the three and six months ended June 30, 2024, income taxes were calculated based on the estimated annual tax rate. Our effective tax rate for continuing operations was 13.6% and 17.1% for the three and six months ended June 30, 2025, respectively, and 20.7% and 20.9% for the three and six months ended June 30, 2024, respectively. The difference between the effective tax rate and the statutory rate is generally attributable to permanent differences and discrete items. The change in our effective tax rate for the three and six months ended June 30, 2025 as compared to the three and six months ended June 30, 2024 was primarily due to a decrease in quarter to date pre-tax earnings and the impact of fixed dollar favorable permanent adjustments on the quarter.On July 4, 2025, the president of the United States signed into law Public Law No. 119-21 H.R.1, commonly known as the “One Big Beautiful Bill Act” ("OBBBA"). The OBBBA includes several significant provisions for corporations, including interest deductibility, research and experimentation expensing, and immediate deduction of capital expenditures. The Company is still evaluating the legislation and its impact on the financial statements.

15. Related Party Transactions

Our related party transactions consist primarily of transactions with our equity method investees (See Note