Leases

We lease certain land, building and various equipment from others. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years or more. The exercise of existing lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Some of our lease agreements include a rate based on equipment usage and others include a rate with fixed increases or inflationary index based increases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain machinery and equipment to third parties. Our sublease portfolio consists primarily of operating leases within our crude storage equipment.

As of December 31, 2025, $16.8 million of our net property, plant, and equipment balance is subject to an operating lease to a third party. This agreement does not include options for the lessee to purchase our leasing equipment, nor does it include any material residual value guarantees or material restrictive covenants.

During the fourth quarter of 2023, Delek determined that leased crude oil tanks in Canada were not needed to support the future growth of its business. We have the ability and intent to sublease these crude oil tanks for the remainder of the respective lease terms, however, the expected sublease has a lower rate than the head lease, resulting in a right-of-use asset impairment of $23.1 million and remaining right-of-use asset value of $21.2 million. The impairment is included in asset impairment in the consolidated statements of income. The fair value of the right-of-use asset was estimated using the discounted future cash flows method, which includes estimates and assumptions for future sublease rental rates that reflect current sublease market conditions, as well as a discount rate.

The following table presents additional information related to our leases in accordance ASC 842, Leases ("ASC 842"):


(in millions)	Year Ended December 31,
		2025		2024			2023
Lease Cost
Operating lease costs		$	47.8	$	54.6		$	63.8
Finance lease costs:(1)
Amortization of leased assets		7.3		—			—
Interest on lease liabilities		1.9		—			—
Total finance lease cost		9.2		—			—

Short-term lease costs (2)		59.8		64.8			46.1
Sublease income		(9.2)		(9.3)			(3.5)
Net lease costs		$	107.6	$	110.1		$	106.4

Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (1)		$	(50.0)	$	(58.5)		$	(60.5)
Leased assets obtained in exchange for new operating lease liabilities		$	22.9	$	15.1		$	50.1
Leased assets obtained in exchange for new financing lease liabilities		$	33.6	$	0.9		$	1.4

				December 31, 2025			December 31, 2024
Weighted-average remaining lease term (years) operating leases				4.2			3.6
Weighted-average remaining lease term (years) financing leases				3.7			5.6
Weighted-average discount rate operating leases (3)				6.5		%	6.2		%
Weighted-average discount rate financing leases (3)				6.8		%	4.5		%

(1) An immaterial amount of financing lease cost was included in operating lease cost during the years ended 2023 and 2024.

(2) Includes an immaterial amount of variable lease cost.

(3) Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842.

The following is an estimate of the maturity of our lease liabilities for operating and financing leases having remaining noncancelable terms in excess of one year as of December 31, 2025 (in millions) under the lease guidance ASC 842:



Maturity of Lease Liabilities	Operating		Finance
12 months or less	$	30.9	$	11.9
13-24 months	27.6		11.9
25-36 months	9.5		8.8
37-48 months	5.0		5.8
49- 60 months	2.8		2.7
Thereafter	9.2		0.1
Total Future Lease Payments	85.0		41.2
Less: Interest	11.7		4.5
Present Value of Lease Liabilities	$	73.3	$	36.7

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Delek US Holdings, Inc. Leases Disclosure

About Leases Disclosures

Other Available Disclosures