Delaware | 001-35764 | 45-3763855 |
Delaware | 333-186007 | 27-2198168 |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description |
99.1 | Press release announcing second quarter results, dated August 1, 2013 |
Dated: | August 1, 2013 | |||
PBF Energy Inc. | ||||
(Registrant) | ||||
By: | /s/ Matthew C. Lucey | |||
Name: | Matthew C. Lucey | |||
Title: | Senior Vice President, Chief Financial | |||
Officer |
Dated: | August 1, 2013 | |||
PBF Holding Company LLC | ||||
(Registrant) | ||||
By: | /s/ Matthew C. Lucey | |||
Name: | Matthew C. Lucey | |||
Title: | Senior Vice President, Chief Financial | |||
Officer |
Exhibit No. | Description |
99.1 | Press release announcing second quarter results, dated August 1, 2013 |
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
(Unaudited, in thousands, except share and per share data) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Revenues | $ | 4,678,293 | $ | 5,077,015 | $ | 9,476,141 | $ | 9,793,121 | |||||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of sales, excluding depreciation | 4,295,979 | 4,279,046 | 8,731,081 | 8,939,239 | |||||||||||||||||
Operating expenses, excluding depreciation | 202,583 | 170,702 | 408,599 | 358,845 | |||||||||||||||||
General and administrative expenses | 19,141 | 25,286 | 49,235 | 39,100 | |||||||||||||||||
Gain on sale of assets | — | 53 | — | (2,450 | ) | ||||||||||||||||
Depreciation and amortization expense | 27,563 | 22,422 | 54,093 | 42,963 | |||||||||||||||||
4,545,266 | 4,497,509 | 9,243,008 | 9,377,697 | ||||||||||||||||||
Income from operations | 133,027 | 579,506 | 233,133 | 415,424 | |||||||||||||||||
Other income (expense) | |||||||||||||||||||||
Change in fair value of contingent consideration | — | (692 | ) | — | (1,384 | ) | |||||||||||||||
Change in fair value of catalyst lease | 6,820 | 5,371 | 5,481 | (978 | ) | ||||||||||||||||
Interest expense, net | (21,708 | ) | (28,443 | ) | (43,319 | ) | (59,851 | ) | |||||||||||||
Income before income taxes | 118,139 | 555,742 | 195,295 | 353,211 | |||||||||||||||||
Income tax expense | (10,969 | ) | — | (18,413 | ) | — | |||||||||||||||
Net income | 107,170 | $ | 555,742 | 176,882 | $ | 353,211 | |||||||||||||||
Less: net income attributable to noncontrolling interest | 90,344 | 148,649 | |||||||||||||||||||
Net income attributable to PBF Energy Inc. | $ | 16,826 | $ | 28,233 | |||||||||||||||||
Net income available to Class A common stock per share: | |||||||||||||||||||||
Basic | $ | 0.62 | $ | 1.12 | |||||||||||||||||
Diluted | $ | 0.61 | $ | 1.08 | |||||||||||||||||
Weighted-average shares outstanding-basic | 26,944,055 | 25,276,137 | |||||||||||||||||||
Weighted-average shares outstanding-diluted | 27,706,696 | 26,110,976 | |||||||||||||||||||
Dividends per share | $ | 0.30 | $ | 0.60 | |||||||||||||||||
Adjusted pro forma net income and adjusted pro forma net income per fully exchanged, fully diluted shares outstanding(1): | |||||||||||||||||||||
Adjusted pro forma net income | $ | 71,484 | $ | 336,224 | $ | 118,166 | $ | 213,693 | |||||||||||||
Adjusted pro forma net income per fully exchanged, fully diluted share | $ | 0.73 | $ | 3.45 | $ | 1.21 | $ | 2.19 | |||||||||||||
Pro forma shares outstanding - diluted | 97,353,701 | 97,353,701 | 97,425,899 | 97,425,899 | |||||||||||||||||
(1) Adjusted Pro Forma information is presented in the table above as management believes that these Non-GAAP measures when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare the company’s results across the periods presented and facilitates an understanding of the company’s operating results. The company also uses this measure to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The differences between Adjusted Pro Forma and U.S. GAAP results are explained in the "Reconciliation of Amounts Reported Under U.S. GAAP - Adjusted Pro Forma Net Income." | |||||||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED BALANCE SHEET DATA | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
June 30, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Balance Sheet Data: | ||||||||||||
Cash and cash equivalents | $ | 69,230 | $ | 285,884 | ||||||||
Inventories | $ | 1,537,573 | $ | 1,497,119 | ||||||||
Total assets | $ | 4,325,903 | $ | 4,253,702 | ||||||||
Total long-term debt | $ | 815,963 | $ | 729,980 | ||||||||
Total equity | $ | 1,741,909 | $ | 1,723,545 | ||||||||
Total debt to capitalization ratio | 32 | % | 30 | % | ||||||||
Net debt to capitalization ratio | 30 | % | 20 | % | ||||||||
SUMMARIZED STATEMENT OF CASH FLOW DATA | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Six months ended June 30, | ||||||||||||
2013 | 2012 | |||||||||||
Cash flows (used in) provided by operations | $ | (40,201 | ) | $ | 117,374 | |||||||
Cash flows used in investing activities | (112,724 | ) | (89,854 | ) | ||||||||
Cash flows used in financing activities | (63,729 | ) | (68,958 | ) | ||||||||
Net decrease in cash and cash equivalents | (216,654 | ) | (41,438 | ) | ||||||||
Cash and cash equivalents, beginning of period | 285,884 | 50,166 | ||||||||||
Cash and cash equivalents, end of period | $ | 69,230 | $ | 8,728 | ||||||||
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
MARKET INDICATORS AND KEY OPERATING INFORMATION | |||||||||||||||||||||
(Unaudited, amounts in thousands except as indicated) | |||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||
Market Indicators (dollars per barrel)(1) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Dated Brent Crude | $ | 102.43 | $ | 108.29 | $ | 107.50 | $ | 113.61 | |||||||||||||
West Texas Intermediate (WTI) crude oil | $ | 94.07 | $ | 93.30 | $ | 94.17 | $ | 98.16 | |||||||||||||
Crack Spreads | |||||||||||||||||||||
Dated Brent (NYH) 2-1-1 | $ | 14.67 | $ | 15.32 | $ | 13.60 | $ | 12.78 | |||||||||||||
WTI (Chicago) 4-3-1 | $ | 29.26 | $ | 28.17 | $ | 27.72 | $ | 23.89 | |||||||||||||
Crude Oil Differentials | |||||||||||||||||||||
Dated Brent (foreign) less WTI | $ | 8.36 | $ | 14.99 | $ | 13.33 | $ | 15.45 | |||||||||||||
Dated Brent less Maya (heavy, sour) | $ | 4.59 | $ | 9.16 | $ | 7.30 | $ | 9.55 | |||||||||||||
Dated Brent less WTS (sour) | $ | 8.42 | $ | 20.28 | $ | 16.42 | $ | 19.93 | |||||||||||||
Dated Brent less ASCI (sour) | $ | 3.14 | $ | 4.41 | $ | 3.55 | $ | 4.07 | |||||||||||||
WTI less WCS (heavy, sour) | $ | 16.63 | $ | 19.87 | $ | 21.54 | $ | 23.16 | |||||||||||||
WTI less Bakken (light, sweet) | $ | 2.06 | $ | 6.54 | $ | 1.98 | $ | 9.49 | |||||||||||||
WTI less Syncrude (light, sweet) | $ | (4.33 | ) | $ | 1.68 | $ | (3.84 | ) | $ | 4.49 | |||||||||||
Natural gas (dollars per MMBTU) | $ | 4.02 | $ | 2.35 | $ | 3.76 | $ | 2.43 | |||||||||||||
(1) As reported by Platts. | |||||||||||||||||||||
Key Operating Information | |||||||||||||||||||||
Production (barrels per day ("bpd") in thousands) | 464.0 | 475.2 | 450.9 | 451.4 | |||||||||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 464.6 | 479.1 | 453.1 | 451.3 | |||||||||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 42.3 | 43.6 | 82.0 | 82.1 | |||||||||||||||||
Gross refining margin per barrel of throughput (2) | $ | 9.04 | $ | 18.30 | $ | 9.08 | $ | 10.40 | |||||||||||||
Operating expense per barrel of throughput (3) | $ | 4.79 | $ | 3.92 | $ | 4.98 | $ | 4.37 | |||||||||||||
Crude and feedstocks (% of total throughput) (4): | |||||||||||||||||||||
Heavy | 16 | % | 17 | % | 15 | % | 18 | % | |||||||||||||
Medium | 39 | % | 42 | % | 44 | % | 46 | % | |||||||||||||
Light | 38 | % | 32 | % | 33 | % | 28 | % | |||||||||||||
Other feedstocks and blends | 7 | % | 9 | % | 8 | % | 8 | % | |||||||||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
Yield (% of total throughput): | |||||||||||||||||||||
Gasoline and gasoline blendstocks | 45 | % | 48 | % | 46 | % | 47 | % | |||||||||||||
Distillates and distillate blendstocks | 37 | % | 34 | % | 37 | % | 35 | % | |||||||||||||
Lubes | 2 | % | 2 | % | 2 | % | 2 | % | |||||||||||||
Chemicals | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||||||
Other | 13 | % | 13 | % | 12 | % | 13 | % | |||||||||||||
Total yield | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||
(2) Gross refining margin per barrel of throughput is a non-GAAP measure. We define it as gross margin, plus refinery operating expenses and depreciation and amortization, divided by total crude and feedstocks throughput. Refer to the "Reconciliation of Amounts Reported Under U.S. GAAP - Gross Refining Margin/Gross Refining Margin per Barrel of Throughput" provided below for additional information, including our rationale for the use of this non-GAAP measure. | |||||||||||||||||||||
(3) Represents refinery operating expenses, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | |||||||||||||||||||||
(4) We define heavy crude oil as crude oil with an American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with an API gravity between 24 and 35 degrees. We define light crude oil as crude oil with an API gravity higher than 35 degrees. |
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | |||||||||||||||||
(Unaudited, amounts in thousands except as indicated) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) | |||||||||||||||||
Production (barrels per day ("bpd") in thousands) | 315.4 | 320.9 | 315.3 | 309.8 | |||||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 317.3 | 318.1 | 318.1 | 306.8 | |||||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 28.9 | 28.9 | 57.6 | 55.8 | |||||||||||||
Crude and feedstocks (% of total throughput) (1): | |||||||||||||||||
Heavy | 23 | % | 25 | % | 22 | % | 27 | % | |||||||||
Medium | 41 | % | 46 | % | 47 | % | 50 | % | |||||||||
Light | 26 | % | 17 | % | 21 | % | 12 | % | |||||||||
Other feedstocks and blends | 10 | % | 12 | % | 10 | % | 11 | % | |||||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
Yield (% of total throughput): | |||||||||||||||||
Gasoline and gasoline blendstocks | 44 | % | 45 | % | 44 | % | 45 | % | |||||||||
Distillates and distillate blendstocks | 37 | % | 34 | % | 38 | % | 36 | % | |||||||||
Lubes | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||
Chemicals | 2 | % | 2 | % | 2 | % | 2 | % | |||||||||
Other | 14 | % | 16 | % | 13 | % | 14 | % | |||||||||
Total yield | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
Supplemental Operating Information - Mid-Continent (Toledo) | |||||||||||||||||
Production (bpd in thousands) | 148.6 | 154.3 | 135.6 | 141.6 | |||||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 147.3 | 161.0 | 135.0 | 144.5 | |||||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 13.4 | 14.7 | 24.4 | 26.3 | |||||||||||||
Crude and feedstocks (% of total throughput) (1): | |||||||||||||||||
Heavy | — | % | — | % | — | % | — | % | |||||||||
Medium | 35 | % | 33 | % | 36 | % | 36 | % | |||||||||
Light | 62 | % | 64 | % | 62 | % | 63 | % | |||||||||
Other feedstocks and blends | 3 | % | 3 | % | 2 | % | 1 | % | |||||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
Yield (% of total throughput): | |||||||||||||||||
Gasoline and gasoline blendstocks | 48 | % | 52 | % | 49 | % | 53 | % | |||||||||
Distillates and distillate blendstocks | 37 | % | 34 | % | 37 | % | 34 | % | |||||||||
Lubes | — | % | — | % | — | % | — | % | |||||||||
Chemicals | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||
Other | 10 | % | 9 | % | 9 | % | 8 | % | |||||||||
Total yield | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
(1) We define heavy crude oil as crude oil with an American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with an API gravity between 24 and 35 degrees. We define light crude oil as crude oil with an API gravity higher than 35 degrees. | |||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||||
ADJUSTED PRO FORMA NET INCOME | |||||||||||||||||||||||
(Unaudited, in thousands, except share and per share data) | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||
Net income attributable to PBF Energy Inc. | $ | 16,826 | — | $ | 28,233 | — | |||||||||||||||||
Add: | Net income attributable to the noncontrolling interest (1) | 90,344 | 555,742 | 148,649 | 353,211 | ||||||||||||||||||
Less: | Income tax expense (2) | (35,686 | ) | (219,518 | ) | (58,716 | ) | (139,518 | ) | ||||||||||||||
Adjusted pro forma net income | $ | 71,484 | $ | 336,224 | $ | 118,166 | $ | 213,693 | |||||||||||||||
Diluted weighted-average shares outstanding of PBF Energy Inc. (3) | 27,706,696 | — | 26,110,976 | — | |||||||||||||||||||
Conversion of PBF LLC Series A Units (4) | 69,647,005 | 97,353,701 | 71,314,923 | 97,425,899 | |||||||||||||||||||
Pro forma shares outstanding - diluted | 97,353,701 | 97,353,701 | 97,425,899 | 97,425,899 | |||||||||||||||||||
Adjusted pro forma net income per fully exchanged, fully | |||||||||||||||||||||||
diluted shares outstanding | $ | 0.73 | $ | 3.45 | $ | 1.21 | $ | 2.19 | |||||||||||||||
(1) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC other than PBF Energy Inc. as if such members had fully exchanged their Series A Units for shares of the company's Class A common stock. | |||||||||||||||||||||||
(2) Represents an adjustment to reflect the company's current effective corporate tax rate of approximately 39.5% applied to all periods presented. The adjustment assumes the full exchange of existing PBF Energy Company LLC Series A Units as described in (1) above. | |||||||||||||||||||||||
(3) Represents weighted-average diluted shares outstanding assuming the conversion of all common stock equivalents, including options and warrants for units of PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method for the three and six month period ended June 30, 2013. Common stock equivalents exclude the effects of options to purchase 731,250 shares of PBF Energy's Class A common stock because they are anti-dilutive. | |||||||||||||||||||||||
(4) Represents an adjustment to weighted-average diluted shares to assume the full exchange of existing PBF LLC Series A Units as described in (1) above. | |||||||||||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||||
Adjusted Pro Forma information is presented in the table above as management believes that these Non-GAAP measures when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare the company’s results across the periods presented and facilitates an understanding of the company’s operating results. The company also uses this measure to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The differences between Adjusted Pro Forma and U.S. GAAP results are explained in the footnotes to the table above. | |||||||||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||||
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT | |||||||||||||||||||||||
(Unaudited, in thousands, except per barrel amounts) | |||||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||||||||||||
per barrel of | per barrel of | ||||||||||||||||||||||
$ | throughput | $ | throughput | ||||||||||||||||||||
Reconciliation of gross margin to gross refining margin: | |||||||||||||||||||||||
Gross margin | $ | 155,484 | $ | 3.68 | $ | 606,234 | $ | 13.90 | |||||||||||||||
Add: refinery operating expense | 202,583 | $ | 4.79 | 170,702 | $ | 3.92 | |||||||||||||||||
Add: refinery depreciation | 24,247 | $ | 0.57 | 21,033 | $ | 0.48 | |||||||||||||||||
Gross refining margin | $ | 382,314 | $ | 9.04 | $ | 797,969 | $ | 18.30 | |||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||||||||
June 30, 2013 | June 30, 2012 | ||||||||||||||||||||||
per barrel of | per barrel of | ||||||||||||||||||||||
$ | throughput | $ | throughput | ||||||||||||||||||||
Reconciliation of gross margin to gross refining margin: | |||||||||||||||||||||||
Gross margin | $ | 288,506 | $ | 3.52 | $ | 455,013 | $ | 5.54 | |||||||||||||||
Add: refinery operating expense | 408,599 | $ | 4.98 | 358,845 | $ | 4.37 | |||||||||||||||||
Add: refinery depreciation | 47,955 | $ | 0.58 | 40,024 | $ | 0.49 | |||||||||||||||||
Gross refining margin | $ | 745,060 | $ | 9.08 | $ | 853,882 | $ | 10.40 | |||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||||
Gross refining margin is a non-GAAP measure because it excludes refinery operating expenses and depreciation and to investors because it is a better metric comparison to the industry refining margin benchmarks shown in the Market Indicators table above, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate refining margin and refining margin per barrel in the same manner. | |||||||||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
EBITDA AND ADJUSTED EBITDA | ||||||||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Reconciliation of net income to EBITDA: | ||||||||||||||||||||||
Net income | $ | 107,170 | $ | 555,742 | $ | 176,882 | $ | 353,211 | ||||||||||||||
Add: | Depreciation and amortization expense | 27,563 | 22,422 | 54,093 | 42,963 | |||||||||||||||||
Add: | Interest expense, net | 21,708 | 28,443 | 43,319 | 59,851 | |||||||||||||||||
Add: | Income tax expense | 10,969 | — | 18,413 | — | |||||||||||||||||
EBITDA | $ | 167,410 | $ | 606,607 | $ | 292,707 | $ | 456,025 | ||||||||||||||
Reconciliation of EBITDA to Adjusted EBITDA: | ||||||||||||||||||||||
EBITDA | $ | 167,410 | $ | 606,607 | $ | 292,707 | $ | 456,025 | ||||||||||||||
Add: | Stock based compensation | 957 | 540 | 1,977 | 1,047 | |||||||||||||||||
Add: | Non-cash change in fair value of catalyst lease obligations | (6,820 | ) | (5,371 | ) | (5,481 | ) | 978 | ||||||||||||||
Add: | Non-cash change in fair value of contingent consideration | — | 692 | — | 1,384 | |||||||||||||||||
Add: | Non-cash change in fair value of inventory repurchase obligations | (2,831 | ) | (5,289 | ) | (13,873 | ) | (12,209 | ) | |||||||||||||
Add: | Non-cash deferral of gross profit on finished product sales | (20,496 | ) | 2,330 | (28,030 | ) | (3,441 | ) | ||||||||||||||
Adjusted EBITDA | $ | 138,220 | $ | 599,509 | $ | 247,300 | $ | 443,784 | ||||||||||||||
Non-GAAP Financial Measures | ||||||||||||||||||||||
EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA, as presented in the tables above, are supplemental measures of performance that are not required by, or presented in accordance with, GAAP. We use these non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. | ||||||||||||||||||||||
In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||||||||||