x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE DELAWARE | 27-2198168 45-2685067 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Sylvan Way, Second Floor Parsippany, New Jersey | 07054 | |
(Address of principal executive offices) | (Zip Code) |
PBF Holding Company LLC | o Yes x No |
PBF Finance Corporation | o Yes x No |
PBF Holding Company LLC | x Yes o No |
PBF Finance Corporation | x Yes o No |
Large accelerated filer | Accelerated filer | Non-accelerated filer (Do not check if a smaller reporting company) | Smaller reporting company | Emerging growth company | ||||
PBF Holding Company LLC | ¨ | ¨ | x | ¨ | o | |||
PBF Finance Corporation | o | o | x | o | o |
PBF Holding Company LLC | o Yes o No |
PBF Finance Corporation | o Yes o No |
PBF Holding Company LLC | ¨ Yes x No |
PBF Finance Corporation | o Yes x No |
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS | ||||
ITEM 1. | ||||
ITEM 2. | ||||
ITEM 3. | ||||
ITEM 4. | ||||
ITEM 1. | ||||
ITEM 6. | ||||
June 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 114,019 | $ | 626,705 | |||
Accounts receivable | 609,760 | 615,881 | |||||
Accounts receivable - affiliate | 26,489 | 7,631 | |||||
Affiliate notes receivable | 11,600 | — | |||||
Inventories | 1,875,164 | 1,863,560 | |||||
Prepaid expense and other current assets | 58,370 | 40,536 | |||||
Total current assets | 2,695,402 | 3,154,313 | |||||
Property, plant and equipment, net | 2,793,029 | 2,728,699 | |||||
Investment in equity method investee | 174,047 | 179,882 | |||||
Deferred charges and other assets, net | 811,281 | 504,003 | |||||
Total assets | $ | 6,473,759 | $ | 6,566,897 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 437,640 | $ | 530,365 | |||
Accounts payable - affiliate | 31,409 | 37,863 | |||||
Accrued expenses | 1,594,300 | 1,462,729 | |||||
Deferred revenue | 4,932 | 12,340 | |||||
Total current liabilities | 2,068,281 | 2,043,297 | |||||
Long-term debt | 1,626,743 | 1,576,559 | |||||
Affiliate notes payable | — | 86,298 | |||||
Deferred tax liabilities | 50,822 | 45,699 | |||||
Other long-term liabilities | 223,106 | 226,111 | |||||
Total liabilities | 3,968,952 | 3,977,964 | |||||
Commitments and contingencies (Note 9) | |||||||
Equity: | |||||||
Member’s equity | 2,349,357 | 2,155,863 | |||||
Retained earnings | 167,868 | 446,519 | |||||
Accumulated other comprehensive loss | (25,311 | ) | (25,962 | ) | |||
Total PBF Holding Company LLC equity | 2,491,914 | 2,576,420 | |||||
Noncontrolling interest | 12,893 | 12,513 | |||||
Total equity | 2,504,807 | 2,588,933 | |||||
Total liabilities and equity | $ | 6,473,759 | $ | 6,566,897 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 5,013,251 | $ | 3,855,773 | $ | 9,763,449 | $ | 6,655,958 | |||||||
Cost and expenses: | |||||||||||||||
Cost of products and other | 4,662,833 | 3,284,748 | 8,914,587 | 5,730,731 | |||||||||||
Operating expenses (excluding depreciation of $56,973, $47,333, $110,790 and $99,722 for the periods presented, respectively) | 398,570 | 271,539 | 835,423 | 568,178 | |||||||||||
General and administrative expenses | 34,920 | 38,091 | 75,399 | 71,360 | |||||||||||
Equity (income) loss in investee | (3,820 | ) | — | (7,419 | ) | — | |||||||||
Loss on sale of assets | 29 | 3,222 | 912 | 3,222 | |||||||||||
Depreciation and amortization expense | 62,993 | 48,919 | 118,683 | 103,212 | |||||||||||
5,155,525 | 3,646,519 | 9,937,585 | 6,476,703 | ||||||||||||
Income (loss) from operations | (142,274 | ) | 209,254 | (174,136 | ) | 179,255 | |||||||||
Other income (expenses): | |||||||||||||||
Change in fair value of catalyst leases | 1,104 | (1,748 | ) | (1,484 | ) | (4,633 | ) | ||||||||
Debt extinguishment costs | (25,451 | ) | — | (25,451 | ) | — | |||||||||
Interest expense, net | (32,857 | ) | (31,279 | ) | (63,513 | ) | (64,550 | ) | |||||||
Income (loss) before income taxes | (199,478 | ) | 176,227 | (264,584 | ) | 110,072 | |||||||||
Income tax expense (benefit) | 5,898 | (5,277 | ) | 6,332 | 26,996 | ||||||||||
Net income (loss) | (205,376 | ) | 181,504 | (270,916 | ) | 83,076 | |||||||||
Less: net income attributable to noncontrolling interests | 267 | 90 | 380 | 393 | |||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | (205,643 | ) | $ | 181,414 | $ | (271,296 | ) | $ | 82,683 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income (loss) | $ | (205,376 | ) | $ | 181,504 | $ | (270,916 | ) | $ | 83,076 | |||||
Other comprehensive income: | |||||||||||||||
Unrealized gain on available for sale securities | 43 | 99 | 77 | 405 | |||||||||||
Net gain on pension and other post-retirement benefits | 287 | 316 | 574 | 632 | |||||||||||
Total other comprehensive income | 330 | 415 | 651 | 1,037 | |||||||||||
Comprehensive income (loss) | (205,046 | ) | 181,919 | (270,265 | ) | 84,113 | |||||||||
Less: comprehensive income attributable to noncontrolling interests | 267 | 90 | 380 | 393 | |||||||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | (205,313 | ) | $ | 181,829 | $ | (270,645 | ) | $ | 83,720 |
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (270,916 | ) | $ | 83,076 | ||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operations: | |||||||
Depreciation and amortization | 122,849 | 107,945 | |||||
Stock-based compensation | 10,134 | 9,999 | |||||
Change in fair value of catalyst leases | 1,484 | 4,633 | |||||
Deferred income taxes | 5,123 | 27,060 | |||||
Non-cash lower of cost or market inventory adjustment | 167,134 | (216,843 | ) | ||||
Non-cash change in inventory repurchase obligations | (3,107 | ) | 26,172 | ||||
Debt extinguishment costs | 25,451 | — | |||||
Pension and other post-retirement benefit costs | 21,121 | 15,355 | |||||
(Income) from equity method investee | (7,419 | ) | — | ||||
Distributions from equity method investee | 12,254 | — | |||||
Loss on sale of assets | 912 | 3,222 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 6,121 | (190,645 | ) | ||||
Due to/from affiliates | (13,505 | ) | (2,457 | ) | |||
Inventories | (178,738 | ) | 82,579 | ||||
Prepaid expense and other current assets | (18,038 | ) | (16,422 | ) | |||
Accounts payable | (144,819 | ) | 58,642 | ||||
Accrued expenses | 106,073 | 164,247 | |||||
Deferred revenue | (7,408 | ) | 3,767 | ||||
Other assets and liabilities | (40,525 | ) | (12,522 | ) | |||
Net cash (used in) provided by operations | (205,819 | ) | 147,808 | ||||
Cash flows from investing activities: | |||||||
Expenditures for property, plant and equipment | (179,575 | ) | (110,035 | ) | |||
Expenditures for deferred turnaround costs | (214,375 | ) | (106,649 | ) | |||
Expenditures for other assets | (23,747 | ) | (21,325 | ) | |||
Chalmette Acquisition working capital settlement | — | (2,659 | ) | ||||
Proceeds from sale of assets | — | 6,860 | |||||
Net cash used in investing activities | (417,697 | ) | (233,808 | ) | |||
Cash flows from financing activities: | |||||||
Contributions from PBF LLC | $ | 97,000 | $ | — | |||
Distributions to members | (5,252 | ) | (61,667 | ) | |||
Proceeds from affiliate notes payable | — | 635 | |||||
Repayment of affiliate notes payable | — | (517 | ) | ||||
Proceeds from 2025 7.25% Senior Notes | 725,000 | — | |||||
Cash paid to extinguish 2020 8.25% Senior Secured Notes | (690,209 | ) | — | ||||
Repayments of PBF Rail Term Loan | (3,295 | ) | — | ||||
Repayments of Rail Facility revolver borrowings | — | (6,970 | ) | ||||
Proceeds from revolver borrowings | 290,000 | 550,000 | |||||
Repayments of revolver borrowings | (290,000 | ) | — | ||||
Deferred financing costs and other | (12,414 | ) | — | ||||
Net cash provided by financing activities | 110,830 | 481,481 | |||||
Net (decrease) increase in cash and cash equivalents | (512,686 | ) | 395,481 | ||||
Cash and cash equivalents, beginning of period | 626,705 | 914,749 | |||||
Cash and cash equivalents, end of period | $ | 114,019 | $ | 1,310,230 | |||
Supplemental cash flow disclosures | |||||||
Non-cash activities: | |||||||
Distribution of assets to PBF Energy Company LLC | $ | 25,547 | $ | — | |||
Accrued and unpaid capital expenditures | 127,805 | 8,149 | |||||
Conversion of affiliate notes payable to capital contribution | 86,298 | — |
Purchase Price | |||
Gross purchase price | $ | 537,500 | |
Working capital | 450,582 | ||
Post close purchase price adjustments | (16,150 | ) | |
Total consideration | $ | 971,932 |
Fair Value Allocation | |||
Inventories | $ | 404,542 | |
Prepaid expenses and other current assets | 982 | ||
Property, plant and equipment | 704,633 | ||
Deferred charges and other assets, net | 68,053 | ||
Accounts payable | (2,688 | ) | |
Accrued expenses | (64,137 | ) | |
Other long-term liabilities | (139,453 | ) | |
Fair value of net assets acquired | $ | 971,932 |
Six Months Ended June 30, 2016 | |||
Pro forma revenues | $ | 7,734,969 | |
Pro forma net loss attributable to PBF Holding Company LLC | $ | (121,369 | ) |
June 30, 2017 | |||||||||||
Titled Inventory | Inventory Intermediation Arrangements | Total | |||||||||
Crude oil and feedstocks | $ | 1,307,816 | $ | — | $ | 1,307,816 | |||||
Refined products and blendstocks | 935,041 | 300,939 | 1,235,980 | ||||||||
Warehouse stock and other | 94,490 | — | 94,490 | ||||||||
$ | 2,337,347 | $ | 300,939 | $ | 2,638,286 | ||||||
Lower of cost or market adjustment | (650,702 | ) | (112,420 | ) | (763,122 | ) | |||||
Total inventories | $ | 1,686,645 | $ | 188,519 | $ | 1,875,164 |
December 31, 2016 | |||||||||||
Titled Inventory | Inventory Intermediation Arrangements | Total | |||||||||
Crude oil and feedstocks | $ | 1,102,007 | $ | — | $ | 1,102,007 | |||||
Refined products and blendstocks | 915,397 | 352,464 | 1,267,861 | ||||||||
Warehouse stock and other | 89,680 | — | 89,680 | ||||||||
$ | 2,107,084 | $ | 352,464 | $ | 2,459,548 | ||||||
Lower of cost or market adjustment | (492,415 | ) | (103,573 | ) | (595,988 | ) | |||||
Total inventories | $ | 1,614,669 | $ | 248,891 | $ | 1,863,560 |
June 30, 2017 | December 31, 2016 | ||||||
Inventory-related accruals | $ | 778,746 | $ | 810,027 | |||
Inventory intermediation arrangements | 233,455 | 225,524 | |||||
Renewable energy credit and emissions obligations | 172,331 | 70,158 | |||||
Excise and sales tax payable | 100,998 | 86,046 | |||||
Accrued transportation costs | 83,312 | 89,830 | |||||
Accrued capital expenditures | 75,711 | 33,610 | |||||
Accrued refinery maintenance and support costs | 32,326 | 28,670 | |||||
Accrued utilities | 28,914 | 44,190 | |||||
Customer deposits | 23,912 | 9,215 | |||||
Accrued salaries and benefits | 15,961 | 17,466 | |||||
Accrued interest | 9,047 | 28,934 | |||||
Environmental liabilities | 8,902 | 8,882 | |||||
Other | 30,685 | 10,177 | |||||
Total accrued expenses | $ | 1,594,300 | $ | 1,462,729 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Current tax expense (benefit) | $ | 737 | $ | 299 | $ | 1,209 | $ | (64 | ) | |||||||
Deferred tax expense (benefit) | 5,161 | (5,576 | ) | 5,123 | 27,060 | |||||||||||
Total tax expense (benefit) | $ | 5,898 | $ | (5,277 | ) | $ | 6,332 | $ | 26,996 |
Service Agreements | Initiation Date | Initial Term | Renewals (a) | Minimum Volume Commitments | Force Majeure |
Transportation and Terminaling | |||||
Delaware City Rail Terminaling Services Agreement | 5/8/2014 | 7 years, 8 months | 2 x 5 | 85,000 bpd | PBFX or PBF Holding can declare |
Toledo Truck Unloading & Terminaling Services Agreement | 5/8/2014 | 7 years, 8 months | 2 x 5 | 5,500 bpd | |
Delaware West Ladder Rack Terminaling Services Agreement | 10/1/2014 | 7 years, 3 months | 2 x 5 | 40,000 bpd | |
Toledo Storage Facility Storage and Terminaling Services Agreement- Terminaling Facility | 12/12/2014 | 10 years | 2 x 5 | 4,400 bpd | |
Delaware Pipeline Services Agreement | 5/15/2015 | 10 years, 8 months | 2 x 5 | 50,000 bpd | |
Delaware Pipeline Services Agreement- Magellan Connection | 11/1/2016 | 2 years, 5 months | N/A | 14,500 bpd | |
Delaware City Truck Loading Services Agreement- Gasoline | 5/15/2015 | 10 years, 8 months | 2 x 5 | 30,000 bpd | |
Delaware City Truck Loading Services Agreement- LPGs | 5/15/2015 | 10 years, 8 months | 2 x 5 | 5,000 bpd | |
East Coast Terminals Terminaling Services Agreements | 5/1/2016 | Various (f) | Evergreen | 15,000 bpd (e) | |
East Coast Terminals Tank Lease Agreements | 5/1/2016 | Various (f) | Evergreen | 350,000 barrels (c) | |
Torrance Valley Pipeline Transportation Services Agreement- North Pipeline | 8/31/2016 | 10 years | 2 x 5 | 50,000 bpd | |
Torrance Valley Pipeline Transportation Services Agreement- South Pipeline | 8/31/2016 | 10 years | 2 x 5 | 70,000 bpd | |
Torrance Valley Pipeline Transportation Services Agreement- Midway Storage Tank | 8/31/2016 | 10 years | 2 x 5 | 55,000 barrels (c) | |
Torrance Valley Pipeline Transportation Services Agreement- Emidio Storage Tank | 8/31/2016 | 10 years | 2 x 5 | 900,000 barrels per month | |
Torrance Valley Pipeline Transportation Services Agreement- Belridge Storage Tank | 8/31/2016 | 10 years | 2 x 5 | 770,000 barrels per month | |
Paulsboro Natural Gas Pipeline Services Agreement (b) | 9/1/2011 | 15 years | Evergreen | N/A | |
Toledo Terminal Services Agreement (g) | 5/1/2016 | 1 year | Evergreen | N/A | |
Storage | |||||
Toledo Storage Facility Storage and Terminaling Services Agreement- Storage Facility | 12/12/2014 | 10 years | 2 x 5 | 3,849,271 barrels (c) | PBFX or PBF Holding can declare |
Chalmette Storage Agreement (d) | See note (d) | 10 years | 2 x 5 | 625,000 barrels |
(a) | PBF Holding has the option to extend the agreements for up to two additional five-year terms, as applicable, in the table above. |
(b) | In connection with the PNGPC Contribution Agreement, PBFX assumed the current commercial transportation agreement between PNGPC and the Paulsboro refinery. Subsequent to the completion of the New Pipeline, PBF Holding will enter into a new transportation agreement with PBFX. |
(c) | Reflects the overall capacity of the storage facility. The storage minimum volume commitment (“MVC”) is subject to effective operating capacity of each tank which can be impacted by routine tank maintenance and other factors. |
(d) | The Chalmette Storage Agreement was entered into on February 15, 2017 but commences at the earlier of November 1, 2017 or the completion of the Chalmette Storage Tank construction (as defined below). |
(e) | The East Coast Terminals terminaling service agreements have no MVCs and are billed based on actual volumes throughput, other than a terminaling services agreement between the East Coast Terminals' Paulsboro, New Jersey location and PBF Holding with a 15,000 bpd MVC. |
(f) | The East Coast Terminal related party agreements include varying term lengths, ranging from one to five years. |
(g) | Subsequent to the Toledo Terminal Acquisition, the Toledo Terminal was added to the East Coast Terminals Terminaling Service Agreements. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues under affiliate agreements: | |||||||||||||||
Services Agreement | $ | 1,661 | $ | 1,121 | $ | 3,279 | $ | 2,243 | |||||||
Omnibus Agreement | 1,630 | 1,415 | 3,284 | 2,259 | |||||||||||
Total expenses under affiliate agreements | 58,355 | 37,965 | 114,557 | 74,514 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Pension Benefits | 2017 | 2016 | 2017 | 2016 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||||
Service cost | $ | 10,144 | $ | 7,339 | $ | 20,287 | $ | 14,679 | |||||||
Interest cost | 1,084 | 775 | 2,168 | 1,551 | |||||||||||
Expected return on plan assets | (1,442 | ) | (1,107 | ) | (2,884 | ) | (2,213 | ) | |||||||
Amortization of prior service cost | 13 | 13 | 26 | 26 | |||||||||||
Amortization of actuarial loss (gain) | 113 | 194 | 226 | 388 | |||||||||||
Net periodic benefit cost | $ | 9,912 | $ | 7,214 | $ | 19,823 | $ | 14,431 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Post-Retirement Medical Plan | 2017 | 2016 | 2017 | 2016 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||||
Service cost | $ | 316 | $ | 219 | $ | 632 | $ | 439 | |||||||
Interest cost | 172 | 133 | 344 | 267 | |||||||||||
Amortization of prior service cost | 161 | 109 | 322 | 218 | |||||||||||
Amortization of actuarial loss (gain) | — | — | — | — | |||||||||||
Net periodic benefit cost | $ | 649 | $ | 461 | $ | 1,298 | $ | 924 |
As of June 30, 2017 | ||||||||||||||||||||||
Fair Value Hierarchy | Total Gross Fair Value | Effect of Counter-party Netting | Net Carrying Value on Balance Sheet | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||
Money market funds | $ | 14,284 | $ | — | $ | — | $ | 14,284 | N/A | $ | 14,284 | |||||||||||
Commodity contracts | 32,291 | 1,041 | — | 33,332 | (14,002 | ) | 19,330 | |||||||||||||||
Derivatives included with inventory intermediation agreement obligations | — | 9,165 | — | 9,165 | — | 9,165 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||
Commodity contracts | 9,720 | 4,282 | — | 14,002 | (14,002 | ) | — | |||||||||||||||
Catalyst lease obligations | — | 47,454 | — | 47,454 | — | 47,454 |
As of December 31, 2016 | ||||||||||||||||||||||
Fair Value Hierarchy | Total Gross Fair Value | Effect of Counter-party Netting | Net Carrying Value on Balance Sheet | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets: | ||||||||||||||||||||||
Money market funds | $ | 342,837 | $ | — | $ | — | $ | 342,837 | N/A | $ | 342,837 | |||||||||||
Commodity contracts | 948 | 35 | — | 983 | (983 | ) | — | |||||||||||||||
Derivatives included with inventory intermediation agreement obligations | — | 6,058 | — | 6,058 | — | 6,058 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||
Commodity contracts | 859 | 3,548 | 84 | 4,491 | (983 | ) | 3,508 | |||||||||||||||
Catalyst lease obligations | — | 45,969 | — | 45,969 | — | 45,969 |
• | Money market funds categorized in Level 1 of the fair value hierarchy are measured at fair value based on quoted market prices and included within Cash and cash equivalents. |
• | The commodity contracts categorized in Level 1 of the fair value hierarchy are measured at fair value based on quoted prices in an active market. The commodity contracts categorized in Level 2 of the fair value hierarchy are measured at fair value using a market approach based upon future commodity prices for similar instruments quoted in active markets. |
• | The commodity contracts categorized in Level 3 of the fair value hierarchy consist of commodity price swap contracts that relate to forecasted purchases of crude oil for which quoted forward market prices are not readily available due to market illiquidity. The forward prices used to value these swaps were derived using broker quotes, prices from other third party sources and other available market based data. |
• | The derivatives included with inventory intermediation agreement obligations and the catalyst lease obligations are categorized in Level 2 of the fair value hierarchy and are measured at fair value using a market approach based upon commodity prices for similar instruments quoted in active markets. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Balance at beginning of period | $ | — | $ | 1,915 | $ | (84 | ) | $ | 3,543 | ||||||
Purchases | — | — | — | — | |||||||||||
Settlements | — | (746 | ) | 45 | (1,003 | ) | |||||||||
Unrealized gain (loss) included in earnings | — | (676 | ) | 39 | (2,047 | ) | |||||||||
Transfers into Level 3 | — | — | — | — | |||||||||||
Transfers out of Level 3 | — | — | — | — | |||||||||||
Balance at end of period | $ | — | $ | 493 | $ | — | $ | 493 |
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying value | Fair value | Carrying value | Fair value | ||||||||||||
Senior secured notes due 2020 (a) | $ | — | $ | — | $ | 670,867 | $ | 696,098 | |||||||
Senior notes due 2023 (a) (d) | 500,000 | 495,543 | 500,000 | 498,801 | |||||||||||
Senior notes due 2025 (a) | 725,000 | 699,640 | — | — | |||||||||||
Revolving Loan (b) | 350,000 | 350,000 | 350,000 | 350,000 | |||||||||||
PBF Rail Term Loan (b) | 31,704 | 31,704 | 35,000 | 35,000 | |||||||||||
Catalyst leases (c) | 47,454 | 47,454 | 45,969 | 45,969 | |||||||||||
1,654,158 | 1,624,341 | 1,601,836 | 1,625,868 | ||||||||||||
Less - Current maturities | — | — | — | — | |||||||||||
Less - Unamortized deferred financing costs | 27,415 | n/a | 25,277 | n/a | |||||||||||
Long-term debt | $ | 1,626,743 | $ | 1,624,341 | $ | 1,576,559 | $ | 1,625,868 |
Description | Balance Sheet Location | Fair Value Asset/(Liability) | ||
Derivatives designated as hedging instruments: | ||||
June 30, 2017: | ||||
Derivatives included with the inventory intermediation agreement obligations | Accrued expenses | $ | 9,165 | |
December 31, 2016: | ||||
Derivatives included with the inventory intermediation agreement obligations | Accrued expenses | $ | 6,058 | |
Derivatives not designated as hedging instruments: | ||||
June 30, 2017: | ||||
Commodity contracts | Accounts receivable | $ | 19,330 | |
December 31, 2016: | ||||
Commodity contracts | Accrued expenses | $ | 3,508 |
Description | Location of Gain or (Loss) Recognized in Income on Derivatives | Gain or (Loss) Recognized in Income on Derivatives | ||
Derivatives designated as hedging instruments: | ||||
For the three months ended June 30, 2017: | ||||
Derivatives included with the inventory intermediation agreement obligations | Cost of products and other | $ | (20,017 | ) |
For the three months ended June 30, 2016: | ||||
Derivatives included with the inventory intermediation agreement obligations | Cost of products and other | $ | 8,973 | |
For the six months ended June 30, 2017: | ||||
Derivatives included with the inventory intermediation agreement obligations | Cost of products and other | $ | 3,107 | |
For the six months ended June 30, 2016: | ||||
Derivatives included with the inventory intermediation agreement obligations | Cost of products and other | $ | (26,172 | ) |
Derivatives not designated as hedging instruments: | ||||
For the three months ended June 30, 2017: | ||||
Commodity contracts | Cost of products and other | $ | 14,293 | |
For the three months ended June 30, 2016: | ||||
Commodity contracts | Cost of products and other | $ | (19,134 | ) |
For the six months ended June 30, 2017: | ||||
Commodity contracts | Cost of products and other | $ | 14,684 | |
For the six months ended June 30, 2016: | ||||
Commodity contracts | Cost of products and other | $ | (39,087 | ) |
Hedged items designated in fair value hedges: | ||||
For the three months ended June 30, 2017: | ||||
Intermediate and refined product inventory | Cost of products and other | $ | 20,017 | |
For the three months ended June 30, 2016: | ||||
Intermediate and refined product inventory | Cost of products and other | $ | (8,973 | ) |
For the six months ended June 30, 2017: | ||||
Intermediate and refined product inventory | Cost of products and other | $ | (3,107 | ) |
For the six months ended June 30, 2016: | ||||
Intermediate and refined product inventory | Cost of products and other | $ | 26,172 |
June 30, 2017 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 78,302 | $ | 5,961 | $ | 29,756 | $ | — | $ | 114,019 | |||||||||
Accounts receivable | 577,813 | 4,498 | 27,449 | — | 609,760 | ||||||||||||||
Accounts receivable - affiliate | 1,461 | 24,428 | 600 | — | 26,489 | ||||||||||||||
Affiliate notes receivable | — | 11,600 | — | — | 11,600 | ||||||||||||||
Inventories | 1,654,143 | — | 221,021 | — | 1,875,164 | ||||||||||||||
Prepaid expense and other current assets | 30,759 | 27,443 | 168 | — | 58,370 | ||||||||||||||
Due from related parties | 26,546,381 | 22,526,098 | 5,683,279 | (54,755,758 | ) | — | |||||||||||||
Total current assets | 28,888,859 | 22,600,028 | 5,962,273 | (54,755,758 | ) | 2,695,402 | |||||||||||||
Property, plant and equipment, net | 25,896 | 2,527,179 | 239,954 | — | 2,793,029 | ||||||||||||||
Investment in subsidiaries | 7,524 | 431,662 | — | (439,186 | ) | — | |||||||||||||
Investment in equity method investee | — | — | 174,047 | — | 174,047 | ||||||||||||||
Deferred charges and other assets, net | 30,571 | 780,710 | — | — | 811,281 | ||||||||||||||
Total assets | $ | 28,952,850 | $ | 26,339,579 | $ | 6,376,274 | $ | (55,194,944 | ) | $ | 6,473,759 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | 240,234 | $ | 185,231 | $ | 12,175 | $ | — | $ | 437,640 | |||||||||
Accounts payable - affiliate | 31,347 | 159 | (97 | ) | — | 31,409 | |||||||||||||
Accrued expenses | 1,316,523 | 141,382 | 136,395 | — | 1,594,300 | ||||||||||||||
Deferred revenue | 4,899 | 20 | 13 | — | 4,932 | ||||||||||||||
Due to related parties | 23,277,244 | 25,761,022 | 5,717,492 | (54,755,758 | ) | — | |||||||||||||
Total current liabilities | 24,870,247 | 26,087,814 | 5,865,978 | (54,755,758 | ) | 2,068,281 | |||||||||||||
Long-term debt | 1,548,024 | 47,406 | 31,313 | — | 1,626,743 | ||||||||||||||
Deferred tax liabilities | — | — | 50,822 | — | 50,822 | ||||||||||||||
Other long-term liabilities | 29,772 | 189,189 | 4,145 | — | 223,106 | ||||||||||||||
Total liabilities | 26,448,043 | 26,324,409 | 5,952,258 | (54,755,758 | ) | 3,968,952 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Equity: | |||||||||||||||||||
Member’s equity | 2,349,357 | 1,720,206 | 362,598 | (2,082,804 | ) | 2,349,357 | |||||||||||||
Retained earnings / (accumulated deficit) | 167,868 | (1,709,693 | ) | 61,418 | 1,648,275 | 167,868 | |||||||||||||
Accumulated other comprehensive (loss) income | (25,311 | ) | (8,236 | ) | — | 8,236 | (25,311 | ) | |||||||||||
Total PBF Holding Company LLC equity | 2,491,914 | 2,277 | 424,016 | (426,293 | ) | 2,491,914 | |||||||||||||
Noncontrolling interest | 12,893 | 12,893 | — | (12,893 | ) | 12,893 | |||||||||||||
Total equity | 2,504,807 | 15,170 | 424,016 | (439,186 | ) | 2,504,807 | |||||||||||||
Total liabilities and equity | $ | 28,952,850 | $ | 26,339,579 | $ | 6,376,274 | $ | (55,194,944 | ) | $ | 6,473,759 |
December 31, 2016 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 530,085 | $ | 56,717 | $ | 41,366 | $ | (1,463 | ) | $ | 626,705 | ||||||||
Accounts receivable | 599,147 | 7,999 | 8,735 | — | 615,881 | ||||||||||||||
Accounts receivable - affiliate | 2,432 | 4,504 | 695 | — | 7,631 | ||||||||||||||
Inventories | 1,680,058 | — | 183,502 | — | 1,863,560 | ||||||||||||||
Prepaid expense and other current assets | 27,443 | 12,933 | 160 | — | 40,536 | ||||||||||||||
Due from related parties | 24,141,120 | 21,883,569 | 4,692,799 | (50,717,488 | ) | — | |||||||||||||
Total current assets | 26,980,285 | 21,965,722 | 4,927,257 | (50,718,951 | ) | 3,154,313 | |||||||||||||
Property, plant and equipment, net | 33,772 | 2,452,877 | 242,050 | — | 2,728,699 | ||||||||||||||
Investment in subsidiaries | 705,034 | 440,377 | — | (1,145,411 | ) | — | |||||||||||||
Investment in equity method investee | — | — | 179,882 | — | 179,882 | ||||||||||||||
Deferred charges and other assets, net | 12,317 | 491,673 | 13 | — | 504,003 | ||||||||||||||
Total assets | $ | 27,731,408 | $ | 25,350,649 | $ | 5,349,202 | $ | (51,864,362 | ) | $ | 6,566,897 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | 360,260 | $ | 157,277 | $ | 14,291 | $ | (1,463 | ) | $ | 530,365 | ||||||||
Accounts payable - affiliate | 37,077 | 786 | — | — | 37,863 | ||||||||||||||
Accrued expenses | 1,094,581 | 201,935 | 166,213 | — | 1,462,729 | ||||||||||||||
Deferred revenue | 10,901 | 1,438 | 1 | — | 12,340 | ||||||||||||||
Due to related parties | 22,027,065 | 24,031,520 | 4,658,903 | (50,717,488 | ) | — | |||||||||||||
Total current liabilities | 23,529,884 | 24,392,956 | 4,839,408 | (50,718,951 | ) | 2,043,297 | |||||||||||||
Long-term debt | 1,496,085 | 45,908 | 34,566 | — | 1,576,559 | ||||||||||||||
Affiliate notes payable | 86,298 | — | — | — | 86,298 | ||||||||||||||
Deferred tax liabilities | — | — | 45,699 | — | 45,699 | ||||||||||||||
Other long-term liabilities | 30,208 | 192,204 | 3,699 | — | 226,111 | ||||||||||||||
Total liabilities | 25,142,475 | 24,631,068 | 4,923,372 | (50,718,951 | ) | 3,977,964 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Equity: | |||||||||||||||||||
Member’s equity | 2,155,863 | 1,714,997 | 374,067 | (2,089,064 | ) | 2,155,863 | |||||||||||||
Retained earnings / (accumulated deficit) | 446,519 | (999,693 | ) | 51,763 | 947,930 | 446,519 | |||||||||||||
Accumulated other comprehensive (loss) income | (25,962 | ) | (8,236 | ) | — | 8,236 | (25,962 | ) | |||||||||||
Total PBF Holding Company LLC equity | 2,576,420 | 707,068 | 425,830 | (1,132,898 | ) | 2,576,420 | |||||||||||||
Noncontrolling interest | 12,513 | 12,513 | — | (12,513 | ) | 12,513 | |||||||||||||
Total equity | 2,588,933 | 719,581 | 425,830 | (1,145,411 | ) | 2,588,933 | |||||||||||||
Total liabilities and equity | $ | 27,731,408 | $ | 25,350,649 | $ | 5,349,202 | $ | (51,864,362 | ) | $ | 6,566,897 |
Three Months Ended June 30, 2017 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
Revenues | $ | 4,928,464 | $ | 134,566 | $ | 512,262 | $ | (562,041 | ) | $ | 5,013,251 | ||||||||
Cost and expenses: | |||||||||||||||||||
Cost of products and other | 4,703,574 | 32,288 | 489,012 | (562,041 | ) | 4,662,833 | |||||||||||||
Operating expenses (excluding depreciation) | (326 | ) | 389,889 | 9,007 | — | 398,570 | |||||||||||||
General and administrative expenses | 28,843 | 6,286 | (209 | ) | — | 34,920 | |||||||||||||
Equity (income) loss in investee | — | — | (3,820 | ) | — | (3,820 | ) | ||||||||||||
Loss on sale of assets | — | 29 | — | — | 29 | ||||||||||||||
Depreciation and amortization expense | 6,019 | 55,077 | 1,897 | — | 62,993 | ||||||||||||||
4,738,110 | 483,569 | 495,887 | (562,041 | ) | 5,155,525 | ||||||||||||||
Income (loss) from operations | 190,354 | (349,003 | ) | 16,375 | — | (142,274 | ) | ||||||||||||
Other income (expenses): | |||||||||||||||||||
Equity in earnings (loss) of subsidiaries | (338,171 | ) | 1,442 | — | 336,729 | — | |||||||||||||
Change in fair value of catalyst leases | — | 1,104 | — | — | 1,104 | ||||||||||||||
Debt extinguishment costs | (25,451 | ) | — | — | — | (25,451 | ) | ||||||||||||
Interest expense, net | (32,108 | ) | (480 | ) | (269 | ) | — | (32,857 | ) | ||||||||||
Income (loss) before income taxes | (205,376 | ) | (346,937 | ) | 16,106 | 336,729 | (199,478 | ) | |||||||||||
Income tax expense | — | — | 5,898 | — | 5,898 | ||||||||||||||
Net income (loss) | (205,376 | ) | (346,937 | ) | 10,208 | 336,729 | (205,376 | ) | |||||||||||
Less: net income attributable to noncontrolling interests | 267 | 267 | — | (267 | ) | 267 | |||||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | (205,643 | ) | $ | (347,204 | ) | $ | 10,208 | $ | 336,996 | $ | (205,643 | ) | ||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | (205,313 | ) | $ | (347,204 | ) | $ | 10,208 | $ | 336,996 | $ | (205,313 | ) |
Three Months Ended June 30, 2016 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
Revenues | $ | 3,834,460 | $ | 95,163 | $ | 339,721 | $ | (413,571 | ) | $ | 3,855,773 | ||||||||
Cost and expenses: | |||||||||||||||||||
Cost of products and other | 3,300,539 | 39,483 | 358,297 | (413,571 | ) | 3,284,748 | |||||||||||||
Operating expenses (excluding depreciation) | (28 | ) | 268,608 | 2,959 | — | 271,539 | |||||||||||||
General and administrative expenses | 28,609 | 9,209 | 273 | — | 38,091 | ||||||||||||||
Loss on sale of assets | — | 24 | 3,198 | — | 3,222 | ||||||||||||||
Depreciation and amortization expense | 1,379 | 45,780 | 1,760 | — | 48,919 | ||||||||||||||
3,330,499 | 363,104 | 366,487 | (413,571 | ) | 3,646,519 | ||||||||||||||
Income (loss) from operations | 503,961 | (267,941 | ) | (26,766 | ) | — | 209,254 | ||||||||||||
Other income (expenses): | |||||||||||||||||||
Equity in earnings (loss) of subsidiaries | (292,212 | ) | — | — | 292,212 | — | |||||||||||||
Change in fair value of catalyst leases | — | (1,748 | ) | — | — | (1,748 | ) | ||||||||||||
Interest expense, net | (30,245 | ) | (484 | ) | (550 | ) | — | (31,279 | ) | ||||||||||
Income (loss) before income taxes | 181,504 | (270,173 | ) | (27,316 | ) | 292,212 | 176,227 | ||||||||||||
Income tax benefit | — | — | (5,277 | ) | — | (5,277 | ) | ||||||||||||
Net income (loss) | 181,504 | (270,173 | ) | (22,039 | ) | 292,212 | 181,504 | ||||||||||||
Less: net income attributable to noncontrolling interests | 90 | 90 | — | (90 | ) | 90 | |||||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | 181,414 | $ | (270,263 | ) | $ | (22,039 | ) | $ | 292,302 | $ | 181,414 | |||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | 181,829 | $ | (270,263 | ) | $ | (22,039 | ) | $ | 292,302 | $ | 181,829 |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
Revenues | $ | 9,654,243 | $ | 760,335 | $ | 1,042,167 | $ | (1,693,296 | ) | $ | 9,763,449 | ||||||||
Cost and expenses: | |||||||||||||||||||
Cost of products and other | 9,064,194 | 530,062 | 1,013,627 | (1,693,296 | ) | 8,914,587 | |||||||||||||
Operating expenses (excluding depreciation) | (331 | ) | 819,419 | 16,335 | — | 835,423 | |||||||||||||
General and administrative expenses | 62,538 | 13,451 | (590 | ) | — | 75,399 | |||||||||||||
Equity (income) loss in investee | — | — | (7,419 | ) | — | (7,419 | ) | ||||||||||||
Loss on sale of assets | — | 912 | — | — | 912 | ||||||||||||||
Depreciation and amortization expense | 7,781 | 107,124 | 3,778 | — | 118,683 | ||||||||||||||
9,134,182 | 1,470,968 | 1,025,731 | (1,693,296 | ) | 9,937,585 | ||||||||||||||
Income (loss) from operations | 520,061 | (710,633 | ) | 16,436 | — | (174,136 | ) | ||||||||||||
Other income (expenses): | |||||||||||||||||||
Equity in earnings (loss) of subsidiaries | (703,300 | ) | 3,335 | — | 699,965 | — | |||||||||||||
Change in fair value of catalyst leases | — | (1,484 | ) | — | — | (1,484 | ) | ||||||||||||
Debt extinguishment costs | (25,451 | ) | — | — | — | (25,451 | ) | ||||||||||||
Interest expense, net | (62,226 | ) | (838 | ) | (449 | ) | — | (63,513 | ) | ||||||||||
Income (loss) before income taxes | (270,916 | ) | (709,620 | ) | 15,987 | 699,965 | (264,584 | ) | |||||||||||
Income tax expense | — | — | 6,332 | — | 6,332 | ||||||||||||||
Net income (loss) | (270,916 | ) | (709,620 | ) | 9,655 | 699,965 | (270,916 | ) | |||||||||||
Less: net income attributable to noncontrolling interests | 380 | 380 | — | (380 | ) | 380 | |||||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | (271,296 | ) | $ | (710,000 | ) | $ | 9,655 | $ | 700,345 | $ | (271,296 | ) | ||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | (270,645 | ) | $ | (710,000 | ) | $ | 9,655 | $ | 700,345 | $ | (270,645 | ) |
Six Months Ended June 30, 2016 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
Revenues | $ | 6,630,376 | $ | 144,782 | $ | 660,441 | $ | (779,641 | ) | $ | 6,655,958 | ||||||||
Cost and expenses: | |||||||||||||||||||
Cost of products and other | 5,739,927 | 103,453 | 666,992 | (779,641 | ) | 5,730,731 | |||||||||||||
Operating expenses (excluding depreciation) | (400 | ) | 562,642 | 5,936 | — | 568,178 | |||||||||||||
General and administrative expenses | 57,306 | 16,060 | (2,006 | ) | — | 71,360 | |||||||||||||
Loss on sale of assets | — | 24 | 3,198 | — | 3,222 | ||||||||||||||
Depreciation and amortization expense | 3,076 | 96,522 | 3,614 | — | 103,212 | ||||||||||||||
5,799,909 | 778,701 | 677,734 | (779,641 | ) | 6,476,703 | ||||||||||||||
Income (loss) from operations | 830,467 | (633,919 | ) | (17,293 | ) | — | 179,255 | ||||||||||||
Other income (expenses): | |||||||||||||||||||
Equity in earnings (loss) of subsidiaries | (684,805 | ) | — | — | 684,805 | — | |||||||||||||
Change in fair value of catalyst leases | — | (4,633 | ) | — | — | (4,633 | ) | ||||||||||||
Interest expense, net | (62,586 | ) | (842 | ) | (1,122 | ) | — | (64,550 | ) | ||||||||||
Income (loss) before income taxes | 83,076 | (639,394 | ) | (18,415 | ) | 684,805 | 110,072 | ||||||||||||
Income tax expense | — | — | 26,996 | — | 26,996 | ||||||||||||||
Net income (loss) | 83,076 | (639,394 | ) | (45,411 | ) | 684,805 | 83,076 | ||||||||||||
Less: net income attributable to noncontrolling interests | 393 | 393 | — | (393 | ) | 393 | |||||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | 82,683 | $ | (639,787 | ) | $ | (45,411 | ) | $ | 685,198 | $ | 82,683 | |||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | 83,720 | $ | (639,787 | ) | $ | (45,411 | ) | $ | 685,198 | $ | 83,720 |
Six Months Ended June 30, 2017 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income (loss) | $ | (270,916 | ) | $ | (709,620 | ) | $ | 9,655 | $ | 699,965 | $ | (270,916 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operations: | |||||||||||||||||||
Depreciation and amortization | 11,596 | 107,430 | 3,823 | — | 122,849 | ||||||||||||||
Stock-based compensation | — | 10,134 | — | — | 10,134 | ||||||||||||||
Change in fair value of catalyst leases | — | 1,484 | — | — | 1,484 | ||||||||||||||
Deferred income taxes | — | — | 5,123 | — | 5,123 | ||||||||||||||
Non-cash lower of cost or market inventory adjustment | 167,134 | — | — | — | 167,134 | ||||||||||||||
Non-cash change in inventory repurchase obligations | (3,107 | ) | — | — | — | (3,107 | ) | ||||||||||||
Debt extinguishment costs | 25,451 | — | — | — | 25,451 | ||||||||||||||
Pension and other post-retirement benefit costs | 3,304 | 17,817 | — | — | 21,121 | ||||||||||||||
(Income) from equity method investee | — | — | (7,419 | ) | — | (7,419 | ) | ||||||||||||
Distributions from equity method investee | — | — | 12,254 | — | 12,254 | ||||||||||||||
Loss on sale of assets | — | 912 | — | — | 912 | ||||||||||||||
Equity in earnings (loss) of subsidiaries | 703,300 | (3,335 | ) | — | (699,965 | ) | — | ||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Accounts receivable | 21,334 | 3,501 | (18,714 | ) | — | 6,121 | |||||||||||||
Due to/from affiliates | (1,111,279 | ) | 1,029,667 | 68,107 | — | (13,505 | ) | ||||||||||||
Inventories | (141,219 | ) | — | (37,519 | ) | — | (178,738 | ) | |||||||||||
Prepaid expense and other current assets | (3,314 | ) | (14,716 | ) | (8 | ) | — | (18,038 | ) | ||||||||||
Accounts payable | (120,026 | ) | (24,140 | ) | (2,116 | ) | 1,463 | (144,819 | ) | ||||||||||
Accrued expenses | 178,794 | (42,903 | ) | (29,818 | ) | — | 106,073 | ||||||||||||
Deferred revenue | (6,002 | ) | (1,418 | ) | 12 | — | (7,408 | ) | |||||||||||
Other assets and liabilities | (15,218 | ) | (13,881 | ) | (11,426 | ) | — | (40,525 | ) | ||||||||||
Net cash (used in) provided by operations | (560,168 | ) | 360,932 | (8,046 | ) | 1,463 | (205,819 | ) | |||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Expenditures for property, plant and equipment | (287 | ) | (179,019 | ) | (269 | ) | — | (179,575 | ) | ||||||||||
Expenditures for deferred turnaround costs | — | (214,375 | ) | — | — | (214,375 | ) | ||||||||||||
Expenditures for other assets | — | (23,747 | ) | — | — | (23,747 | ) | ||||||||||||
Net cash used in investing activities | (287 | ) | (417,141 | ) | (269 | ) | — | (417,697 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Contributions from PBF LLC | 97,000 | — | — | — | 97,000 | ||||||||||||||
Distribution to members | (5,252 | ) | — | — | — | (5,252 | ) | ||||||||||||
Proceeds from 2025 7.25% Senior Notes | 725,000 | — | — | — | 725,000 | ||||||||||||||
Cash paid to extinguish 2020 8.25% Senior Secured Notes | (690,209 | ) | — | — | — | (690,209 | ) | ||||||||||||
Repayments of PBF Rail Term Loan | — | — | (3,295 | ) | — | (3,295 | ) | ||||||||||||
Proceeds from revolver borrowings | 290,000 | — | — | — | 290,000 | ||||||||||||||
Repayments of revolver borrowings | (290,000 | ) | — | — | — | (290,000 | ) | ||||||||||||
Due to/from affiliates | (5,453 | ) | 5,453 | — | — | — | |||||||||||||
Deferred financing costs and other | (12,414 | ) | — | — | — | (12,414 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 108,672 | 5,453 | (3,295 | ) | — | 110,830 | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (451,783 | ) | (50,756 | ) | (11,610 | ) | 1,463 | (512,686 | ) | ||||||||||
Cash and cash equivalents, beginning of period | 530,085 | 56,717 | 41,366 | (1,463 | ) | 626,705 | |||||||||||||
Cash and cash equivalents, end of period | $ | 78,302 | $ | 5,961 | $ | 29,756 | $ | — | $ | 114,019 |
Six Months Ended June 30, 2016 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income (loss) | $ | 83,076 | $ | (639,394 | ) | $ | (45,411 | ) | $ | 684,805 | $ | 83,076 | |||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operations: | |||||||||||||||||||
Depreciation and amortization | 7,405 | 96,645 | 3,895 | — | 107,945 | ||||||||||||||
Stock-based compensation | — | 9,999 | — | — | 9,999 | ||||||||||||||
Change in fair value of catalyst leases | — | 4,633 | — | — | 4,633 | ||||||||||||||
Deferred income taxes | — | — | 27,060 | — | 27,060 | ||||||||||||||
Non-cash lower of cost or market inventory adjustment | (200,063 | ) | (16,780 | ) | — | — | (216,843 | ) | |||||||||||
Non-cash change in inventory repurchase obligations | — | 26,172 | — | — | 26,172 | ||||||||||||||
Pension and other post-retirement benefit costs | 3,464 | 11,891 | — | — | 15,355 | ||||||||||||||
Loss on sale of assets | — | 24 | 3,198 | — | 3,222 | ||||||||||||||
Equity in earnings of subsidiaries | 684,805 | — | — | (684,805 | ) | — | |||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Accounts receivable | (190,245 | ) | 6,084 | (6,484 | ) | — | (190,645 | ) | |||||||||||
Due to/from affiliates | (838,988 | ) | 798,315 | 38,216 | — | (2,457 | ) | ||||||||||||
Inventories | 91,094 | (11,455 | ) | 2,940 | — | 82,579 | |||||||||||||
Prepaid expense and other current assets | (4,255 | ) | (12,365 | ) | 198 | — | (16,422 | ) | |||||||||||
Accounts payable | 80,299 | (24,617 | ) | 1,030 | 1,930 | 58,642 | |||||||||||||
Accrued expenses | 175,598 | (2,269 | ) | (9,082 | ) | — | 164,247 | ||||||||||||
Deferred revenue | 3,767 | — | — | — | 3,767 | ||||||||||||||
Other assets and liabilities | (10,304 | ) | (3,305 | ) | 1,087 | — | (12,522 | ) | |||||||||||
Net cash (used in) provided by operations | (114,347 | ) | 243,578 | 16,647 | 1,930 | 147,808 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Expenditures for property, plant and equipment | (11,765 | ) | (98,259 | ) | (11 | ) | — | (110,035 | ) | ||||||||||
Expenditures for deferred turnaround costs | — | (106,649 | ) | — | — | (106,649 | ) | ||||||||||||
Expenditures for other assets | — | (21,325 | ) | — | — | (21,325 | ) | ||||||||||||
Investment in subsidiaries | 12,800 | — | — | (12,800 | ) | — | |||||||||||||
Chalmette Acquisition working capital settlement | — | (2,659 | ) | — | — | (2,659 | ) | ||||||||||||
Proceeds from sale of assets | — | — | 6,860 | — | 6,860 | ||||||||||||||
Net cash provided by (used in) investing activities | 1,035 | (228,892 | ) | 6,849 | (12,800 | ) | (233,808 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Distributions to Parent | — | — | (12,800 | ) | 12,800 | — | |||||||||||||
Distributions to members | (61,667 | ) | — | — | — | (61,667 | ) | ||||||||||||
Proceeds from affiliate notes payable | 635 | — | — | — | 635 | ||||||||||||||
Repayment of affiliate notes payable | (517 | ) | — | — | — | (517 | ) | ||||||||||||
Repayment of Rail Facility revolver borrowings | — | — | (6,970 | ) | — | (6,970 | ) | ||||||||||||
Proceeds from revolver borrowings | 550,000 | — | — | — | 550,000 | ||||||||||||||
Net cash provided by (used in) financing activities | 488,451 | — | (19,770 | ) | 12,800 | 481,481 | |||||||||||||
Net increase in cash and cash equivalents | 375,139 | 14,686 | 3,726 | 1,930 | 395,481 | ||||||||||||||
Cash and cash equivalents, beginning of period | 882,820 | 6,236 | 28,968 | (3,275 | ) | 914,749 | |||||||||||||
Cash and cash equivalents, end of period | $ | 1,257,959 | $ | 20,922 | $ | 32,694 | $ | (1,345 | ) | $ | 1,310,230 |
Refinery | Region | Nelson Complexity | Throughput Capacity (in barrels per day) | PADD | Crude Processed (1) | Source (1) | |||
Delaware City | East Coast | 11.3 | 190,000 | 1 | medium and heavy sour crude | water, rail | |||
Paulsboro | East Coast | 13.2 | 180,000 | 1 | medium and heavy sour crude | water, rail | |||
Toledo | Mid-Continent | 9.2 | 170,000 | 2 | light, sweet crude | pipeline, truck, rail | |||
Chalmette | Gulf Coast | 12.7 | 189,000 | 3 | light and heavy crude | water, pipeline | |||
Torrance | West Coast | 14.9 | 155,000 | 5 | heavy and medium crude | pipeline, water, truck |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues under affiliate agreements: | |||||||||||||||
Services Agreement | $ | 1.7 | $ | 1.1 | $ | 3.3 | $ | 2.2 | |||||||
Omnibus Agreement | 1.6 | 1.4 | 3.3 | 2.3 | |||||||||||
Total expenses under affiliate agreements | 58.4 | 38.0 | 114.6 | 74.5 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | $ | 5,013,251 | $ | 3,855,773 | $ | 9,763,449 | $ | 6,655,958 | |||||||
Cost and expenses: | |||||||||||||||
Cost of products and other | 4,662,833 | 3,284,748 | 8,914,587 | 5,730,731 | |||||||||||
Operating expenses (excluding depreciation of $56,973, $47,333, $110,790 and $99,722 for the periods presented, respectively) | 398,570 | 271,539 | 835,423 | 568,178 | |||||||||||
General and administrative expenses | 34,920 | 38,091 | 75,399 | 71,360 | |||||||||||
Equity (income) loss in investee | (3,820 | ) | — | (7,419 | ) | — | |||||||||
Loss on sale of assets | 29 | 3,222 | 912 | 3,222 | |||||||||||
Depreciation and amortization expense | 62,993 | 48,919 | 118,683 | 103,212 | |||||||||||
Income (loss) from operations: | (142,274 | ) | 209,254 | (174,136 | ) | 179,255 | |||||||||
Change in fair value of catalyst leases | 1,104 | (1,748 | ) | (1,484 | ) | (4,633 | ) | ||||||||
Debt extinguishment costs | (25,451 | ) | — | (25,451 | ) | — | |||||||||
Interest expense, net | (32,857 | ) | (31,279 | ) | (63,513 | ) | (64,550 | ) | |||||||
Income (loss) before income taxes | (199,478 | ) | 176,227 | (264,584 | ) | 110,072 | |||||||||
Income tax expense (benefit) | 5,898 | (5,277 | ) | 6,332 | 26,996 | ||||||||||
Net income (loss) | (205,376 | ) | 181,504 | (270,916 | ) | 83,076 | |||||||||
Less: net income attributable to noncontrolling interests | 267 | 90 | 380 | 393 | |||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | (205,643 | ) | $ | 181,414 | $ | (271,296 | ) | $ | 82,683 | |||||
Gross margin | $ | (105,125 | ) | $ | 251,946 | $ | (97,461 | ) | $ | 256,913 | |||||
Gross refining margin (1) | $ | 350,418 | $ | 571,025 | $ | 848,862 | $ | 925,227 |
(1) | See Non-GAAP Financial Measures below. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Key Operating Information | |||||||||||||||
Production (bpd in thousands) | 764.2 | 702.7 | 748.8 | 678.0 | |||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 769.2 | 698.1 | 753.7 | 674.0 | |||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 70.0 | 63.5 | 136.4 | 122.7 | |||||||||||
Gross margin per barrel of throughput | $ | (1.49 | ) | $ | 3.96 | $ | (0.71 | ) | $ | 2.09 | |||||
Gross refining margin, excluding special items, per barrel of throughput (1) | $ | 7.17 | $ | 6.50 | $ | 7.45 | $ | 5.77 | |||||||
Refinery operating expenses, excluding depreciation, per barrel of throughput | $ | 5.69 | $ | 4.27 | $ | 6.12 | $ | 4.63 | |||||||
Crude and feedstocks (% of total throughput) (2) | |||||||||||||||
Heavy crude | 30 | % | 18 | % | 35 | % | 16 | % | |||||||
Medium crude | 31 | % | 44 | % | 30 | % | 47 | % | |||||||
Light crude | 23 | % | 27 | % | 20 | % | 25 | % | |||||||
Other feedstocks and blends | 16 | % | 11 | % | 15 | % | 12 | % | |||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
Yield (% of total throughput) | |||||||||||||||
Gasoline and gasoline blendstocks | 50 | % | 47 | % | 51 | % | 48 | % | |||||||
Distillates and distillate blendstocks | 30 | % | 32 | % | 30 | % | 31 | % | |||||||
Lubes | 1 | % | 1 | % | 1 | % | 1 | % | |||||||
Chemicals | 2 | % | 4 | % | 2 | % | 4 | % | |||||||
Other | 16 | % | 16 | % | 16 | % | 16 | % | |||||||
Total yield | 99 | % | 100 | % | 100 | % | 100 | % |
(1) | See Non-GAAP Financial Measures below. |
(2) | We define heavy crude oil as crude oil with American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(dollars per barrel, except as noted) | |||||||||||||||
Dated Brent Crude | $ | 49.69 | $ | 45.65 | $ | 51.61 | $ | 40.08 | |||||||
West Texas Intermediate (WTI) crude oil | $ | 48.11 | $ | 45.53 | $ | 49.89 | $ | 39.64 | |||||||
Light Louisiana Sweet (LLS) crude oil | $ | 50.17 | $ | 47.39 | $ | 51.77 | $ | 41.51 | |||||||
Alaska North Slope (ANS) crude oil | $ | 50.61 | $ | 45.74 | $ | 52.20 | $ | 40.00 | |||||||
Crack Spreads | |||||||||||||||
Dated Brent (NYH) 2-1-1 | $ | 14.81 | $ | 15.32 | $ | 13.21 | $ | 13.30 | |||||||
WTI (Chicago) 4-3-1 | $ | 14.09 | $ | 16.51 | $ | 12.65 | $ | 12.77 | |||||||
LLS (Gulf Coast) 2-1-1 | $ | 12.56 | $ | 10.76 | $ | 12.30 | $ | 9.76 | |||||||
ANS (West Coast) 4-3-1 | $ | 19.16 | $ | 18.58 | $ | 17.85 | $ | 18.04 | |||||||
Crude Oil Differentials | |||||||||||||||
Dated Brent (foreign) less WTI | $ | 1.58 | $ | 0.11 | $ | 1.73 | $ | 0.44 | |||||||
Dated Brent less Maya (heavy, sour) | $ | 8.00 | $ | 7.83 | $ | 7.34 | $ | 7.94 | |||||||
Dated Brent less WTS (sour) | $ | 2.65 | $ | 0.96 | $ | 2.98 | $ | 0.95 | |||||||
Dated Brent less ASCI (sour) | $ | 2.85 | $ | 3.67 | $ | 3.46 | $ | 3.96 | |||||||
WTI less WCS (heavy, sour) | $ | 9.56 | $ | 11.75 | $ | 11.23 | $ | 11.55 | |||||||
WTI less Bakken (light, sweet) | $ | 0.30 | $ | 0.43 | $ | 0.61 | $ | 0.98 | |||||||
WTI less Syncrude (light, sweet) | $ | (1.35 | ) | $ | (2.72 | ) | $ | (1.81 | ) | $ | (3.56 | ) | |||
WTI less LLS (light, sweet) | $ | (2.06 | ) | $ | (1.85 | ) | $ | (1.88 | ) | $ | (1.87 | ) | |||
WTI less ANS (light, sweet) | $ | (2.50 | ) | $ | (0.21 | ) | $ | (2.31 | ) | $ | (0.37 | ) | |||
Natural gas (dollars per MMBTU) | $ | 3.14 | $ | 2.25 | $ | 3.10 | $ | 2.11 |
Three Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
$ | per barrel of throughput | $ | per barrel of throughput | ||||||||||||
Calculation of gross margin: | |||||||||||||||
Revenues | $ | 5,013,251 | $ | 71.62 | $ | 3,855,773 | $ | 60.70 | |||||||
Less: Cost of products and other | 4,662,833 | 66.61 | 3,284,748 | 51.72 | |||||||||||
Less: Refinery operating expenses | 398,570 | 5.69 | 271,539 | 4.27 | |||||||||||
Less: Refinery depreciation expenses | 56,973 | 0.81 | 47,540 | 0.75 | |||||||||||
Gross margin | $ | (105,125 | ) | $ | (1.49 | ) | $ | 251,946 | $ | 3.96 | |||||
Reconciliation of gross margin to gross refining margin: | |||||||||||||||
Gross margin | $ | (105,125 | ) | $ | (1.49 | ) | $ | 251,946 | $ | 3.96 | |||||
Add: Refinery operating expenses | 398,570 | 5.69 | 271,539 | 4.27 | |||||||||||
Add: Refinery depreciation expense | 56,973 | 0.81 | 47,540 | 0.75 | |||||||||||
Gross refining margin | $ | 350,418 | $ | 5.01 | $ | 571,025 | $ | 8.98 | |||||||
Special items: | |||||||||||||||
Add: Non-cash LCM inventory adjustment (1) | 151,095 | 2.16 | (157,780 | ) | (2.48 | ) | |||||||||
Gross refining margin excluding special items | $ | 501,513 | $ | 7.17 | $ | 413,245 | $ | 6.50 | |||||||
Six Months Ended June 30, | |||||||||||||||
2017 | 2016 | ||||||||||||||
$ | per barrel of throughput | $ | per barrel of throughput | ||||||||||||
Calculation of gross margin: | |||||||||||||||
Revenues | $ | 9,763,449 | $ | 71.57 | $ | 6,655,958 | $ | 54.25 | |||||||
Less: Cost of products and other | 8,914,587 | 65.35 | 5,730,731 | 46.71 | |||||||||||
Less: Refinery operating expenses | 835,423 | 6.12 | 568,178 | 4.63 | |||||||||||
Less: Refinery depreciation expenses | 110,900 | 0.81 | 100,136 | 0.82 | |||||||||||
Gross margin | $ | (97,461 | ) | $ | (0.71 | ) | $ | 256,913 | $ | 2.09 | |||||
Reconciliation of gross margin to gross refining margin: | |||||||||||||||
Gross margin | $ | (97,461 | ) | $ | (0.71 | ) | $ | 256,913 | $ | 2.09 | |||||
Add: Refinery operating expenses | 835,423 | 6.12 | 568,178 | 4.63 | |||||||||||
Add: Refinery depreciation expense | 110,900 | 0.81 | 100,136 | 0.82 | |||||||||||
Gross refining margin | $ | 848,862 | $ | 6.22 | $ | 925,227 | $ | 7.54 | |||||||
Special items: | |||||||||||||||
Add: Non-cash LCM inventory adjustment (1) | 167,134 | 1.23 | (216,843 | ) | (1.77 | ) | |||||||||
Gross refining margin excluding special items | $ | 1,015,996 | $ | 7.45 | $ | 708,384 | $ | 5.77 | |||||||
• | do not reflect depreciation expense or our cash expenditures, or future requirements, for capital expenditures or contractual commitments; |
• | do not reflect changes in, or cash requirements for, our working capital needs; |
• | do not reflect our interest expense, or the cash requirements necessary to service interest or principal payments, on our debt; |
• | do not reflect realized and unrealized gains and losses from certain hedging activities, which may have a substantial impact on our cash flow; |
• | do not reflect certain other non-cash income and expenses; and |
• | exclude income taxes that may represent a reduction in available cash. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||||
Reconciliation of net income (loss) to EBITDA: | |||||||||||||||||
Net income (loss) | $ | (205,376 | ) | $ | 181,504 | $ | (270,916 | ) | $ | 83,076 | |||||||
Add: Depreciation and amortization expense | 62,993 | 48,919 | 118,683 | 103,212 | |||||||||||||
Add: Interest expense, net | 32,857 | 31,279 | 63,513 | 64,550 | |||||||||||||
Add: Income tax expense (benefit) | 5,898 | (5,277 | ) | 6,332 | 26,996 | ||||||||||||
EBITDA | $ | (103,628 | ) | $ | 256,425 | $ | (82,388 | ) | $ | 277,834 | |||||||
Special Items: | |||||||||||||||||
Add: Non-cash LCM inventory adjustment (1) | 151,095 | (157,780 | ) | 167,134 | (216,843 | ) | |||||||||||
Add: Debt extinguishment costs (1) | 25,451 | — | 25,451 | — | |||||||||||||
EBITDA excluding special items | $ | 72,918 | $ | 98,645 | $ | 110,197 | $ | 60,991 | |||||||||
Reconciliation of EBITDA to Adjusted EBITDA: | |||||||||||||||||
EBITDA | $ | (103,628 | ) | $ | 256,425 | $ | (82,388 | ) | $ | 277,834 | |||||||
Add: Stock based compensation | 4,789 | 7,378 | 10,134 | 9,999 | |||||||||||||
Add: Non-cash change in fair value of catalyst leases | (1,104 | ) | 1,748 | 1,484 | 4,633 | ||||||||||||
Add: Non-cash LCM inventory adjustment (1) | 151,095 | (157,780 | ) | 167,134 | (216,843 | ) | |||||||||||
Add: Debt extinguishment costs (1) | 25,451 | — | 25,451 | — | |||||||||||||
Adjusted EBITDA | $ | 76,603 | $ | 107,771 | $ | 121,815 | $ | 75,623 | |||||||||
(1) | Special items: In accordance with GAAP, we are required to state our inventories at the lower of cost or market. Our inventory cost is determined by the last-in, first-out (“LIFO”) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value of inventory to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and an LCM inventory adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period. |
2017 | 2016 | ||||||
January 1, | $ | 595,988 | $ | 1,117,336 | |||
March 31, | 612,027 | 1,058,273 | |||||
June 30, | 763,122 | 900,493 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net LCM inventory adjustment benefit (charge) in both operating and net income | $ | (151,095 | ) | $ | 157,780 | $ | (167,134 | ) | $ | 216,843 |
Exhibit Number | Description | |
Indenture dated as of May 30, 2017, among PBF Holding Company LLC, PBF Finance Corporation, the Guarantors named on the signature pages thereto, Wilmington Trust, National Association, as Trustee and Deutsche Bank Trust Company Americas, as Paying Agent, Registrar, Transfer Agent and Authenticating Agent and Form of Note included as Exhibit A (incorporated by reference to Exhibit 4.1 of PBF Energy Inc.’s Current Report on Form 8-K (File No. 001-35764) filed on May 30, 2017). | ||
Registration Rights Agreement dated May 30, 2017, among PBF Holding Company LLC and PBF Finance Corporation, the Guarantors named therein and Citi Global Markets Inc., as Representative of the several Initial Purchasers (incorporated by reference to Exhibit 4.3 of PBF Energy Inc.’s Current Report on Form 8-K (File No. 001-35764) filed on May 30, 2017). | ||
Amendment to the Intermediation Agreement dated as of May 4, 2017, among J. Aron & Company, PBF Holding Company LLC and Paulsboro Refining Company LLC (incorporated by reference to Exhibit 10.1 to PBF Energy Inc.’s Quarterly Report on Form 10-Q filed on August 3, 2017 (File No. 001-35764)). | ||
Amendment to the Intermediation Agreement dated as of May 4, 2017, among J. Aron & Company, PBF Holding Company LLC and Delaware City Refining Company LLC (incorporated by reference to Exhibit 10.1 to PBF Energy Inc.’s Quarterly Report on Form 10-Q filed on August 3, 2017 (File No. 001-35764)). | ||
31.1* | Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Holding Company LLC pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2* | Certification of Erik Young, Chief Financial Officer of PBF Holding Company LLC pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1* (1) | Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Holding Company LLC pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2* (1) | Certification of Erik Young, Chief Financial Officer of PBF Holding Company LLC pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Filed herewith. |
† | Confidential treatment requested as to certain portions, which portions are omitted and filed separately with the Securities and Exchange Commission. |
(1) | This exhibit should not be deemed to be “filed” for purposes of Section 18 of the Exchange Act. |
PBF Holding Company LLC | ||||
Date | August 8, 2017 | By: | /s/ Erik Young | |
Erik Young Senior Vice President, Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) | ||||
PBF Finance Corporation | ||||
Date | August 8, 2017 | By: | /s/ Erik Young | |
Erik Young Senior Vice President, Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) |
Exhibit Number | Description | |
Indenture dated as of May 30, 2017, among PBF Holding Company LLC, PBF Finance Corporation, the Guarantors named on the signature pages thereto, Wilmington Trust, National Association, as Trustee and Deutsche Bank Trust Company Americas, as Paying Agent, Registrar, Transfer Agent and Authenticating Agent and Form of Note included as Exhibit A (incorporated by reference to Exhibit 4.1 of PBF Energy Inc.’s Current Report on Form 8-K (File No. 001-35764) filed on May 30, 2017). | ||
Registration Rights Agreement dated May 30, 2017, among PBF Holding Company LLC and PBF Finance Corporation, the Guarantors named therein and Citi Global Markets Inc., as Representative of the several Initial Purchasers (incorporated by reference to Exhibit 4.3 of PBF Energy Inc.’s Current Report on Form 8-K (File No. 001-35764) filed on May 30, 2017). | ||
Amendment to the Intermediation Agreement dated as of May 4, 2017, among J. Aron & Company, PBF Holding Company LLC and Paulsboro Refining Company LLC (incorporated by reference to Exhibit 10.1 to PBF Energy Inc.’s Quarterly Report on Form 10-Q filed on August 3, 2017 (File No. 001-35764)). | ||
Amendment to the Intermediation Agreement dated as of May 4, 2017, among J. Aron & Company, PBF Holding Company LLC and Delaware City Refining Company LLC (incorporated by reference to Exhibit 10.1 to PBF Energy Inc.’s Quarterly Report on Form 10-Q filed on August 3, 2017 (File No. 001-35764)). | ||
31.1* | Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Holding Company LLC pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2* | Certification of Erik Young, Chief Financial Officer of PBF Holding Company LLC pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1* (1) | Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Holding Company LLC pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2* (1) | Certification of Erik Young, Chief Financial Officer of PBF Holding Company LLC pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Filed herewith. |
† | Confidential treatment requested as to certain portions, which portions are omitted and filed separately with the Securities and Exchange Commission. |
(1) | This exhibit should not be deemed to be “filed” for purposes of Section 18 of the Exchange Act. |
/s/ Thomas J. Nimbley | ||
Thomas J. Nimbley Chief Executive Officer |
/s/ Erik Young | ||
Erik Young Senior Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PBF Holding. |
/s/ Thomas J. Nimbley | |
Thomas J. Nimbley | |
Chief Executive Officer | |
August 8, 2017 |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PBF Holding. |
/s/ Erik Young | |
Erik Young | |
Senior Vice President and Chief Financial Officer | |
August 8, 2017 |
Document and Entity Information Document - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Aug. 08, 2017 |
|
Entity Information [Line Items] | ||
Entity Registrant Name | PBF HOLDING CO LLC | |
Entity Central Index Key | 0001566011 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2017 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 0 | |
PBF Finance Corporation [Member] | ||
Entity Information [Line Items] | ||
Entity Registrant Name | PBF FINANCE CORPORATION | |
Entity Central Index Key | 0001566097 | |
Entity Common Stock, Shares Outstanding | 100 |
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Revenues | $ 5,013,251 | $ 3,855,773 | $ 9,763,449 | $ 6,655,958 |
Cost and expenses | ||||
Cost of products and other | 4,662,833 | 3,284,748 | 8,914,587 | 5,730,731 |
Operating expenses (excluding depreciation of $56,973, $47,333, $110,790 and $99,722 for the periods presented, respectively) | 398,570 | 271,539 | 835,423 | 568,178 |
General and administrative expenses | 34,920 | 38,091 | 75,399 | 71,360 |
Equity (income) loss in investee | (3,820) | 0 | (7,419) | 0 |
Loss on sale of assets | 29 | 3,222 | 912 | 3,222 |
Depreciation and amortization expense | 62,993 | 48,919 | 118,683 | 103,212 |
Total cost and expenses | 5,155,525 | 3,646,519 | 9,937,585 | 6,476,703 |
Income (loss) from operations | (142,274) | 209,254 | (174,136) | 179,255 |
Other income (expenses) | ||||
Change in fair value of catalyst leases | 1,104 | (1,748) | (1,484) | (4,633) |
Gain (Loss) on Extinguishment of Debt | (25,451) | 0 | (25,451) | 0 |
Interest expense, net | (32,857) | (31,279) | (63,513) | (64,550) |
Income (loss) before income taxes | (199,478) | 176,227 | (264,584) | 110,072 |
Income tax expense (benefit) | 5,898 | (5,277) | 6,332 | 26,996 |
Net income (loss) | (205,376) | 181,504 | (270,916) | 83,076 |
Less: net income attributable to noncontrolling interests | 267 | 90 | 380 | 393 |
Net income (loss) attributable to PBF Holding Company LLC | $ (205,643) | $ 181,414 | $ (271,296) | $ 82,683 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
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Net income (loss) | $ (205,376) | $ 181,504 | $ (270,916) | $ 83,076 |
Other comprehensive income: | ||||
Unrealized gain on available for sale securities | 43 | 99 | 77 | 405 |
Net gain on pension and other post-retirement benefits | 287 | 316 | 574 | 632 |
Total other comprehensive income | 330 | 415 | 651 | 1,037 |
Comprehensive income (loss) | (205,046) | 181,919 | (270,265) | 84,113 |
Less: comprehensive income attributable to noncontrolling interests | 267 | 90 | 380 | 393 |
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ (205,313) | $ 181,829 | $ (270,645) | $ 83,720 |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION |
6 Months Ended |
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Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Description of the Business PBF Holding Company LLC (“PBF Holding” or the “Company”), a Delaware limited liability company, together with its consolidated subsidiaries, owns and operates oil refineries and related facilities in North America. PBF Holding is a wholly-owned subsidiary of PBF Energy Company LLC (“PBF LLC”). PBF Energy Inc. (“PBF Energy”) is the sole managing member of, and owner of an equity interest representing approximately 96.6% of the outstanding economic interest in, PBF LLC as of June 30, 2017. PBF Investments LLC (“PBF Investments”), Toledo Refining Company LLC (“Toledo Refining” or “TRC”), Paulsboro Refining Company LLC (“Paulsboro Refining” or “PRC”), Delaware City Refining Company LLC (“Delaware City Refining” or “DCR”), Chalmette Refining, L.L.C. (“Chalmette Refining”), PBF Western Region LLC (“PBF Western Region”), Torrance Refining Company LLC (“Torrance Refining”) and Torrance Logistics Company LLC are PBF LLC’s principal operating subsidiaries and are all wholly-owned subsidiaries of PBF Holding. Collectively, PBF Holding and its consolidated subsidiaries are referred to hereinafter as the “Company”. On May 14, 2014, PBF Logistics LP (“PBFX”), a Delaware master limited partnership, completed its initial public offering (the “PBFX Offering”). PBF Logistics GP LLC (“PBF GP”) serves as the general partner of PBFX. PBF GP is wholly-owned by PBF LLC. In connection with the PBFX Offering, PBF Holding contributed to PBFX the assets and liabilities of certain crude oil terminaling assets. In a series of additional transactions subsequent to the PBFX Offering, PBF Holding distributed certain additional assets to PBF LLC, which in turn contributed those assets to PBFX (as described in “Note 8 - Related Party Transactions”). Substantially all of the Company’s operations are in the United States. As of June 30, 2017, the Company’s oil refineries are all engaged in the refining of crude oil and other feedstocks into petroleum products, and have been aggregated to form one reportable segment. To generate earnings and cash flows from operations, the Company is primarily dependent upon processing crude oil and selling refined petroleum products at margins sufficient to cover fixed and variable costs and other expenses. Crude oil and refined petroleum products are commodities; and factors largely out of the Company’s control can cause prices to vary over time. The potential margin volatility can have a material effect on the Company’s financial position, earnings and cash flow. Basis of Presentation The unaudited condensed consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, considered necessary for a fair presentation of the financial position and the results of operations and cash flows of the Company for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These interim condensed consolidated financial statements should be read in conjunction with the financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2016 of PBF Holding Company LLC and PBF Finance Corporation. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year. Cost Classifications Cost of products and other consists of the cost of crude oil, other feedstocks, blendstocks and purchased refined products and the related in-bound freight and transportation costs. Operating expenses (excluding depreciation) consists of direct costs of labor, maintenance and services, utilities, property taxes, environmental compliance costs and other direct operating costs incurred in connection with our refining operations. Such expenses exclude depreciation related to refining and logistics assets that are integral to the refinery production process, which is presented as a component of Depreciation and amortization expense on our Condensed Consolidated Statement of Operations. Reclassification Certain amounts previously reported in the Company's condensed consolidated financial statements for prior periods have been reclassified to conform to the 2017 presentation. These reclassifications include certain details about accrued expenses in that footnote. Recently Adopted Accounting Guidance Effective January 1, 2017, the Company adopted Accounting Standard Update (“ASU”) No. 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2016-06”). ASU 2016-6 was issued in March 2016 by the Financial Accounting Standards Board (“FASB”) to increase consistency in practice in applying guidance on determining if an embedded derivative is clearly and closely related to the economic characteristics of the host contract, specifically for assessing whether call (put) options that can accelerate the repayment of principal on a debt instrument meet the clearly and closely related criterion. The Company’s adoption of this guidance did not materially impact its consolidated financial statements. Effective January 1, 2017, the Company adopted ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 was issued by the FASB in March 2016 to simplify certain aspects of the accounting for share-based payments to employees. The guidance in ASU 2016-09 requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled rather than recording excess tax benefits or deficiencies in additional paid-in capital. The guidance in ASU 2016-09 also allows an employer to repurchase more of an employee’s shares than it could prior to its adoption for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The Company’s adoption of this guidance did not materially impact its consolidated financial statements. Effective January 1, 2017, the Company adopted ASU No. 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control” (“ASU 2016-17”). ASU 2016-17 was issued by the FASB in October 2016 to amend the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (“VIE”) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The amendments in this ASU do not change the characteristics of a primary beneficiary in current GAAP. The amendments in this ASU require that a reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. The Company’s adoption of this guidance did not materially impact its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”), which provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. Under ASU 2017-01, it is expected that the definition of a business will be narrowed and more consistently applied. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments in this ASU should be applied prospectively on or after the effective date. Early adoption of ASU 2017-01 is permitted and the Company early adopted the new standard in its consolidated financial statements and related disclosures effective January 1, 2017. The Company’s adoption of this guidance did not materially impact its consolidated financial statements. Recent Accounting Pronouncements In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date of ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”) for all entities by one year. Additional ASUs have been issued in 2016 that provide certain implementation guidance related to ASU 2014-09 (collectively, the Company refers to ASU 2014-09 and these additional ASUs as the “Updated Revenue Recognition Guidance”). The Updated Revenue Recognition Guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective. Under ASU 2015-14, this guidance becomes effective for interim and annual periods beginning after December 15, 2017 and permits the use of either the retrospective or modified retrospective transition method. Under ASU 2015-14, early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company has established a working group to assess the Updated Revenue Recognition Guidance, including its impact on the Company’s business processes, accounting systems, controls and financial statement disclosures. The Company’s preliminary expectation is that it will adopt this guidance using the modified retrospective method whereby a cumulative effect adjustment is recognized upon adoption and the Updated Revenue Recognition Guidance is applied prospectively. The Company will not early adopt this new guidance. The working group is progressing through its implementation plan and continues to evaluate the impact of this new standard on the Company’s consolidated financial statements and related disclosures. Although the Company’s analysis of the new standard is still in process and interpretative and industry specific guidance is still developing, the Company currently does not expect the new standard to have a material impact on the amount or timing of revenues recognized for the majority of its revenue arrangements. However, it is expected that the new standard will have some impact on presentation and disclosures in its financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company has established a working group to study and lead implementation of the new guidance in ASU 2016-02. This working group was formed during 2016 and has begun the process of compiling a central repository for all leases entered into by the Company and its subsidiaries for further analysis as the implementation project progresses. It is not anticipated that the Company will early adopt this new guidance. The working group continues to evaluate the impact of this new standard on its consolidated financial statements and related disclosures. At this time, the Company has identified that the most significant impacts of this new guidance will be to bring nearly all leases on its balance sheet with “right of use assets” and “lease obligation liabilities” as well as accelerating the interest expense component of financing leases. While the assessment of the impacts arising from this standard is progressing, it remains in its early stages. Accordingly, the Company has not fully determined the impacts on its business processes, controls or financial statement disclosures. In March 2017, the FASB issued ASU No. 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”), which provides guidance to improve the reporting of net benefit cost in the income statement and on the components eligible for capitalization in assets. Under the new guidance, employers will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. Additionally, under this guidance, employers will present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. These components will not be eligible for capitalization in assets. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The guidance includes a practical expedient allowing entities to estimate amounts for comparative periods using the information previously disclosed in their pension and other postretirement benefit plan note to the financial statements. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”), which provides guidance to increase clarity and reduce both diversity in practice and cost and complexity when applying the existing accounting guidance on changes to the terms or conditions of a share-based payment award. The amendments in ASU 2017-09 require an entity to account for the effects of a modification unless all the following are met: (i) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The guidance in ASU 2017-09 should be applied prospectively. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company will apply the guidance prospectively for any modifications to its stock compensation plans occurring after the effective date of the new standard. |
ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS Torrance Acquisition On July 1, 2016, the Company acquired from ExxonMobil Oil Corporation and its subsidiary, Mobil Pacific Pipe Line Company, the Torrance refinery and related logistics assets (collectively, the “Torrance Acquisition”). The Torrance refinery, located in Torrance, California, is a high-conversion, delayed-coking refinery. The facility is strategically positioned in Southern California with advantaged logistics connectivity that offers flexible raw material sourcing and product distribution opportunities primarily in the California, Las Vegas and Phoenix area markets. The Torrance Acquisition provided the Company with a broader more diversified asset base and increased the number of operating refineries from four to five and expanded the Company’s combined crude oil throughput capacity. The acquisition also provided the Company with a presence in the PADD 5 market. In addition to refining assets, the transaction included a number of high-quality logistics assets including a sophisticated network of crude and products pipelines, product distribution terminals and refinery crude and product storage facilities. The most significant of the logistics assets is a crude gathering and transportation system which delivers San Joaquin Valley crude oil directly from the field to the refinery. Additionally, included in the transaction were several pipelines which provide access to sources of crude oil including the Ports of Long Beach and Los Angeles, as well as clean product outlets with a direct pipeline supplying jet fuel to the Los Angeles airport. The aggregate purchase price for the Torrance Acquisition was $521,350 in cash after post-closing purchase price adjustments, plus final working capital of $450,582. In addition, the Company assumed certain pre-existing environmental and regulatory emission credit obligations in connection with the Torrance Acquisition. The transaction was financed through a combination of cash on hand, including proceeds from certain PBF Energy equity offerings and borrowings under the Company’s asset based revolving credit agreement (the “Revolving Loan”). The Company accounted for the Torrance Acquisition as a business combination under GAAP whereby the Company recognizes assets acquired and liabilities assumed in an acquisition at their estimated fair values as of the date of acquisition. The final purchase price and fair value allocation were completed as of June 30, 2017. During the measurement period, which ended in June 2017, adjustments were made to the Company’s preliminary fair value estimates related primarily to Property, plant and equipment and Other long-term liabilities reflecting the finalization of the Company’s assessment of the costs and duration of certain assumed pre-existing environmental obligations. The total purchase consideration and the fair values of the assets and liabilities at the acquisition date were as follows:
The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:
The Company’s condensed consolidated financial statements for the six months ended June 30, 2017 include the results of operations of the Torrance refinery and related logistics assets subsequent to the Torrance Acquisition whereas the same period in 2016 does not include the results of operations of such assets. On an unaudited pro forma basis, the revenues and net income of the Company assuming the Torrance Acquisition had occurred on January 1, 2015, are shown below. The unaudited pro forma information does not purport to present what the Company’s actual results would have been had the acquisition occurred on January 1, 2015, nor is the financial information indicative of the results of future operations. The unaudited pro forma financial information includes the depreciation and amortization expense attributable to the Torrance Acquisition and interest expense associated with the related financing.
The unaudited amount of revenues and net loss above have been calculated after conforming accounting policies of the Torrance refinery and related logistics assets to those of the Company and certain one-time adjustments. Chalmette Acquisition On November 1, 2015, the Company acquired from ExxonMobil, Mobil Pipe Line Company and PDV Chalmette, L.L.C., 100% of the ownership interests of Chalmette Refining, which owns the Chalmette refinery and related logistics assets (collectively, the “Chalmette Acquisition”). While the Company’s condensed consolidated financial statements for both the three and six months ended June 30, 2017 and 2016 include the results of operations of Chalmette Refining, the final working capital settlement for the Chalmette Acquisition was finalized in the first quarter of 2016. Additionally, certain acquisition related costs for the Chalmette Acquisition were recorded in the first quarter of 2016. Acquisition Expenses The Company incurred acquisition related costs consisting primarily of consulting and legal expenses related to completed, pending and non-consummated acquisitions of $94 and $466 in the three and six months ended June 30, 2017, respectively. In the three and six months ended June 30, 2016, the Company incurred acquisition related costs of $2,410 and $7,134 respectively. These costs are included in the condensed consolidated statements of operations in General and administrative expenses. |
INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consisted of the following:
Inventory under inventory intermediation arrangements included certain light finished products sold to counterparties and stored in the Paulsboro and Delaware City refineries’ storage facilities in connection with the amended and restated inventory intermediation agreements (as amended in the second quarter of 2017, the “A&R Intermediation Agreements”) with J. Aron & Company, a subsidiary of The Goldman Sachs Group, Inc. (“J. Aron”). During the three months ended June 30, 2017, the Company recorded an adjustment to value its inventories to the lower of cost or market (“LCM”) which decreased both operating income and net income by $151,095 reflecting the net change in the lower of cost or market inventory reserve from $612,027 at March 31, 2017 to $763,122 at June 30, 2017. During the six months ended June 30, 2017, the Company recorded an adjustment to value its inventories to the lower of cost or market which decreased both operating income and net income by $167,134 reflecting the net change in the lower of cost or market inventory reserve from $595,988 at December 31, 2016 to $763,122 at June 30, 2017. During the three months ended June 30, 2016, the Company recorded an adjustment to value its inventories to the lower of cost or market which increased both operating income and net income by $157,780 reflecting the net change in the lower of cost or market inventory reserve from $1,058,273 at March 31, 2016 to $900,493 at June 30, 2016. During the six months ended June 30, 2016, the Company recorded an adjustment to value its inventories to the lower of cost or market which increased both operating income and net income by $216,843 reflecting the net change in the lower of cost or market inventory reserve from $1,117,336 at December 31, 2015 to $900,493 at June 30, 2016. |
ACCRUED EXPENSES |
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ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following:
The Company has the obligation to repurchase certain intermediates and finished products that are held in the Company’s refinery storage tanks at the Delaware City and Paulsboro refineries in accordance with the A&R Intermediation Agreements with J. Aron. As of June 30, 2017 and December 31, 2016, a liability is recognized for the inventory intermediation arrangements and is recorded at market price for the J. Aron owned inventory held in the Company’s storage tanks under the A&R Inventory Intermediation Agreements, with any change in the market price being recorded in Cost of products and other. The Company is subject to obligations to purchase Renewable Identification Numbers (“RINs”) required to comply with the Renewable Fuels Standard. The Company’s overall RINs obligation is based on a percentage of domestic shipments of on-road fuels as established by the Environmental Protection Agency (“EPA”). To the degree the Company is unable to blend the required amount of biofuels to satisfy its RINs obligation, RINs must be purchased on the open market to avoid penalties and fines. The Company records its RINs obligation on a net basis in Accrued expenses when its RINs liability is greater than the amount of RINs earned and purchased in a given period and in Prepaid expenses and other current assets when the amount of RINs earned and purchased is greater than the RINs liability. In addition, the Company is subject to obligations to comply with federal and state legislative and regulatory measures to address environmental compliance and greenhouse gas and other emissions, including AB32 in California. These requirements include incremental costs to operate and maintain our facilities as well as to implement and manage new emission controls and programs, which have contributed to the increase in accrued environmental liabilities and emission obligations following the Torrance Acquisition. Renewable energy credit and emissions obligations fluctuate with the volume of applicable product sales and timing of credit purchases. |
LONG-TERM DEBT (Notes) |
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Debt Instrument [Line Items] | |
Debt Disclosure [Text Block] | 5. LONG-TERM DEBT Senior Notes On May 30, 2017, PBF Holding entered into an Indenture (the “Indenture”) among PBF Holding and PBF Holding’s wholly-owned subsidiary, PBF Finance Corporation (“PBF Finance” and, together with PBF Holding, the “Issuers”), the guarantors named therein (collectively the “Guarantors”) and Wilmington Trust, National Association, as Trustee, under which the Issuers issued $725,000 in aggregate principal amount of 7.25% senior notes due 2025 (the “2025 Senior Notes”). The Issuers received net proceeds of approximately $712,586 from the offering after deducting the initial purchasers’ discount and estimated offering expenses. The Company used the net proceeds to fund the cash tender offer (the “Tender Offer”) for any and all of its outstanding 8.25% senior secured notes due 2020 (the “2020 Senior Secured Notes”), to pay the related redemption price and accrued and unpaid interest for any 2020 Senior Secured Notes that remained outstanding after the completion of the Tender Offer, and for general corporate purposes. The difference between the carrying value of the 2020 Senior Secured Notes on the date they were reacquired and the amount for which they were reacquired has been classified as debt extinguishment costs in the condensed consolidated statement of operations. The 2025 Senior Notes include a registration payment arrangement whereby the Company has agreed to file with the SEC and use reasonable efforts to cause to become effective within 365 days of the closing date, a registration statement relating to an offer to exchange the 2025 Senior Notes for an issue of registered notes with terms substantially identical to the notes. The Issuers will be obligated to pay additional interest if they fail to comply with their obligations to register the 2025 Senior Notes within the specified time period. The Company fully intends to file a registration statement for the exchange of the 2025 Senior Notes within the 365 day period following the closing of the 2025 Senior Notes. In addition, there are no restrictions or hindrances that the Company is aware of that would prohibit the Issuers from filing such registration statement and maintaining its effectiveness as stipulated in the registration rights agreement. As such, the Company asserts that it is not probable that it will have to transfer any consideration as a result of the registration rights agreement and thus no loss contingency was recorded. The 2025 Senior Notes are guaranteed on a senior unsecured basis by substantially all of PBF Holding’s subsidiaries. The 2025 Senior Notes and guarantees are senior unsecured obligations and rank equal in right of payment with all of the Issuers’ and the Guarantors’ existing and future senior indebtedness, including PBF Holding’s Revolving Loan and the Issuers’ 7.00% senior notes due 2023 (the “2023 Senior Notes”). The 2025 Senior Notes and the guarantees rank senior in right of payment to the Issuers’ and the Guarantors’ existing and future indebtedness that is expressly subordinated in right of payment thereto. The 2025 Senior Notes and the guarantees are effectively subordinated to any of the Issuers’ and the Guarantors’ existing or future secured indebtedness (including the Revolving Loan) to the extent of the value of the collateral securing such indebtedness. The 2025 Senior Notes and the guarantees are structurally subordinated to any existing or future indebtedness and other obligations of the Issuers’ non-guarantor subsidiaries. PBF Holding has optional redemption rights to repurchase all or a portion of the 2025 Senior Notes at varying prices no less than 100% of the principal amounts of the notes plus accrued and unpaid interest. The holders of the 2025 Senior Notes have repurchase options exercisable only upon a change in control, certain asset sale transactions, or in event of a default as defined in the Indenture. In addition, the 2025 Senior Notes contain customary terms, events of default and covenants for an issuer of non-investment grade debt securities that limit certain types of additional debt, equity issuances, and payments. Many of these covenants will cease to apply or will be modified if the 2025 Senior Notes are rated investment grade. Upon the satisfaction and discharge of the 2020 Senior Secured Notes in connection with the closing of the Tender Offer and the redemption described above, a Collateral Fall-Away Event under the indenture governing the 2023 Senior Notes occurred on May 30, 2017, and the 2023 Senior Notes became unsecured and certain covenants were modified, as provided for in the indenture governing the 2023 Senior Notes and related documents. |
INCOME TAXES |
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INCOME TAXES | INCOME TAXES PBF Holding is a limited liability company treated as a “flow-through” entity for income tax purposes. Accordingly, there is generally no benefit or provision for federal or state income tax in the PBF Holding financial statements apart from the income tax attributable to two subsidiaries acquired in connection with the acquisition of Chalmette Refining and the Company’s wholly-owned Canadian subsidiary, PBF Energy Limited (“PBF Ltd.”). The two subsidiaries acquired in connection with the Chalmette Acquisition are treated as C-Corporations for income tax purposes. The income tax provision (benefit) in the PBF Holding condensed consolidated financial statements of operations consists of the following:
During the preparation of the financial statements for the first quarter of 2016, management determined that the deferred income tax liabilities for PBF Ltd. were understated for prior periods. For the three months ended March 31, 2016, the Company incurred $30,602 of deferred tax expense and $121 of current tax expense relating to a correction of prior periods. |
AFFILIATE NOTE PAYABLE |
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INTERCOMPANY NOTE PAYABLE [Abstract] | |
AFFILIATE NOTE PAYABLE | AFFILIATE NOTES PAYABLE PBF Holding has entered into affiliate notes payable with PBF Energy and PBF LLC with an interest rate of 2.5% and a five year term, which may be prepaid in whole or in part at any time, at the option of PBF Holding, without penalty or premium. Additional borrowings may be made by PBF Holding under such affiliate notes payable from time to time. In the fourth quarter of 2016, the notes were extended to 2021. Additionally, in the fourth quarter of 2016, PBF LLC converted $379,947 of the outstanding affiliate notes payable from PBF Holding to a capital contribution. In the first quarter of 2017, PBF LLC converted the full amount of outstanding affiliate notes payable from PBF Holding of $86,298 to a capital contribution. Therefore, as of June 30, 2017, PBF Holding had no outstanding affiliate notes payable with PBF Energy and PBF LLC ($86,298 outstanding as of December 31, 2016). |
RELATED PARTY TRANSACTIONS |
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RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Transactions and Agreements with PBFX PBF Holding entered into agreements with PBFX that establish fees for certain general and administrative services, and operational and maintenance services provided by the Company to PBFX. In addition, the Company executed terminal, pipeline and storage services agreements with PBFX under which PBFX provides commercial transportation, terminaling, storage and pipeline services to the Company. These agreements with PBFX include the agreements set forth below: Contribution Agreements Immediately prior to the closing of certain contribution agreements, which PBF LLC entered into with PBFX (collectively referred to as the “Contribution Agreements”), PBF Holding contributed certain assets to PBF LLC. PBF LLC in turn contributed those assets to PBFX pursuant to the Contribution Agreements. Certain proceeds received by PBF LLC from PBFX in accordance with the Contribution Agreements were subsequently contributed by PBF LLC to PBF Holding. Pursuant to a Contribution Agreement entered into on February 15, 2017, PBF Holding contributed all of the issued and outstanding limited liability company interests of Paulsboro Natural Gas Pipeline Company LLC (“PNGPC”) to PBF LLC. PBFX Operating Company LP (“PBFX Op Co”), PBFX’s wholly-owned subsidiary, in turn acquired the limited liability company interests in PNGPC from PBF LLC in connection with the Contribution Agreement effective February 28, 2017. PNGPC owns and operates an existing interstate natural gas pipeline which serves PBF Holding's Paulsboro refinery (the “Paulsboro Natural Gas Pipeline”), which is subject to regulation by the Federal Energy Regulatory Commission (“FERC”). PNGPC has FERC approval for, and is in the process of constructing, a new pipeline (the “New Pipeline”) to replace the existing pipeline, which was placed in service in August 2017. In consideration for the PNGPC limited liability company interests, PBFX delivered to PBF LLC (i) an $11,600 intercompany promissory note in favor of Paulsboro Refining Company LLC, a wholly owned subsidiary of PBF Holding (the “Promissory Note”), (ii) an expansion rights and right of first refusal agreement in favor of PBF LLC with respect to the New Pipeline and (iii) an assignment and assumption agreement with respect to certain outstanding litigation involving PNGPC and the existing pipeline. Commercial Agreements In connection with the Contribution Agreements, PBF Holding entered into long-term, fee-based commercial agreements with PBFX. Under these agreements, PBFX provides various pipeline, rail and truck terminaling and storage services to PBF Holding and PBF Holding has committed to provide PBFX with minimum fees based on minimum monthly throughput volumes. The fees under each of these agreements are supported by contractual fee escalations for inflation adjustments and certain increases in operating costs. PBF Holding believes the terms and conditions under these agreements, as well as the Omnibus Agreement (as defined below) and the Services Agreement (as defined below) each with PBFX, are generally no less favorable to either party than those that could have been negotiated with unaffiliated parties with respect to similar services. These commercial agreements (as defined in the table below) with PBFX include:
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Other Agreements In addition to the commercial agreements described above, at the closing of the PBFX Offering, PBFX entered into an omnibus agreement, which has been amended and restated in connection with the closing of each of the contribution agreements with PBF GP, PBF LLC and PBF Holding (as amended, the “Omnibus Agreement”). The Omnibus Agreement addresses the payment of an annual fee for the provision of various general and administrative services and reimbursement of salary and benefit costs for certain PBF Energy employees. The annual fee was increased to $6,900 per year effective as of January 1, 2017. In connection with the PBFX Offering, PBFX also entered into an operation and management services and secondment agreement with PBF Holding and certain of its subsidiaries, pursuant to which PBF Holding and its subsidiaries provide PBFX with the personnel necessary for PBFX to perform its obligations under its commercial agreements. PBFX reimburses PBF Holding for the use of such employees and the provision of certain infrastructure-related services to the extent applicable to its operations, including storm water discharge and waste water treatment, steam, potable water, access to certain roads and grounds, sanitary sewer access, electrical power, emergency response, filter press, fuel gas, API solids treatment, fire water and compressed air. On February 28, 2017, PBF Holding and PBFX entered into a fifth amended and restated services agreement (as amended, the “Services Agreement”) in connection with the PNGPC Contribution Agreement, resulting in an increase to the annual fee to $6,696. The Services Agreement will terminate upon the termination of the Omnibus Agreement, provided that PBFX may terminate any service on 30 days’ notice. In connection with the Chalmette Storage Agreement, PBF Holding’s subsidiary, Chalmette Refining, entered into a twenty-year lease for the premises upon which a new tank at the Chalmette refinery (the “Chalmette Storage Tank”) will be located (the “Lease”) and a project management agreement (the “Project Management Agreement”) pursuant to which Chalmette Refining will manage the construction of the tank. The Lease can be extended by PBFX Op Co for two additional ten year terms. Summary of Transactions with PBFX A summary of revenue and expense transactions with PBFX is as follows:
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Environmental Matters The Company’s refineries, pipelines and related operations are subject to extensive and frequently changing federal, state and local laws and regulations, including, but not limited to, those relating to the discharge of materials into the environment or that otherwise relate to the protection of the environment, waste management and the characteristics and the compositions of fuels. Compliance with existing and anticipated laws and regulations can increase the overall cost of operating the refineries, including remediation, operating costs and capital costs to construct, maintain and upgrade equipment and facilities. In connection with the Paulsboro refinery acquisition, the Company assumed certain environmental remediation obligations. The Paulsboro environmental liability of $11,117 recorded as of June 30, 2017 ($10,792 as of December 31, 2016) represents the present value of expected future costs discounted at a rate of 8.0%. The current portion of the environmental liability is recorded in Accrued expenses and the non-current portion is recorded in Other long-term liabilities. This liability is self-guaranteed by the Company. In connection with the acquisition of the Delaware City assets, Valero Energy Corporation (“Valero”) remains responsible for certain pre-acquisition environmental obligations up to $20,000 and the predecessor to Valero in ownership of the refinery retains other historical obligations. In connection with the acquisition of the Delaware City assets and the Paulsboro refinery, the Company and Valero purchased ten year, $75,000 environmental insurance policies to insure against unknown environmental liabilities at each site. In connection with the Toledo refinery acquisition, Sunoco, Inc. (R&M) (“Sunoco”) remains responsible for environmental remediation for conditions that existed on the closing date for twenty years from March 1, 2011, subject to certain limitations. In connection with the acquisition of the Chalmette refinery, the Company obtained $3,936 in financial assurance (in the form of a surety bond) to cover estimated potential site remediation costs associated with an agreed to Administrative Order of Consent with the EPA. The estimated cost assumes remedial activities will continue for a minimum of 30 years. Further, in connection with the acquisition of the Chalmette refinery, the Company purchased a ten year, $100,000 environmental insurance policy to insure against unknown environmental liabilities at the refinery. As of November 1, 2015, the Company acquired Chalmette Refining, which was in discussions with the Louisiana Department of Environmental Quality (“LDEQ”) to resolve self-reported deviations from refinery operations relating to certain Clean Air Act Title V permit conditions, limits and other requirements. LDEQ commenced an enforcement action against Chalmette Refining on November 14, 2014 by issuing a Consolidated Compliance Order and Notice of Potential Penalty (the “Order”) covering deviations from 2009 and 2010. Chalmette Refining and LDEQ subsequently entered into a dispute resolution agreement, the enforcement of which has been suspended while negotiations are ongoing, which may include the resolution of deviations outside the periods covered by the Order. In February 2017, Chalmette Refining and the LDEQ met to resolve the issues under the Order, including the assessment of an administrative penalty against Chalmette Refining. Although a resolution has not been finalized, the administrative penalty is anticipated to be approximately $700, including beneficial environmental projects. To the extent the administrative penalty exceeds such amount, it is not expected to be material to the Company. On January 24, 2017, in connection with a Clean Air Act inspection in May 2014 by the EPA to determine compliance with 40 CFR Subpart 68 Chemical Accident Prevention Provisions, EPA notified the Chalmette refinery of its intent to bring an enforcement action on two findings from the audit. In a letter received in June 2017 the EPA stated that there are “no violations or areas of concern” at the Chalmette refinery “for which EPA intends to take enforcement action” relative to the 2014 inspection. On December 23, 2016, the Delaware City refinery received a Notice of Violation (“NOV”) from DNREC concerning a potential violation of the DNREC order authorizing the shipment of crude oil by barge from the refinery. The NOV alleges that DCR made shipments to locations other than the Paulsboro refinery in violation of the order and requests certain additional information. On February 7, 2017, DCR responded to the NOV. On March 10, 2017, DNREC issued a $150 fine in a Notice of Penalty Assessment and Secretary’s Order to the Delaware City refinery for violating the 2013 Secretary’s Order. DNREC’s investigation found that PBF Energy violated the Order throughout 2014, when it made 17 barge shipments of crude oil over 15 days to locations other than the Paulsboro refinery. DNREC determined that the Delaware City refinery had violated the order by failing to make timely and full disclosure to DNREC about the nature and extent of those shipments, and had misrepresented the number of shipments that went to other facilities. The penalty assessment and Secretary’s Order conclude that the 2013 Secretary’s Order was violated by the Delaware City refinery by shipping crude oil from the Delaware City terminal to three locations other than the Paulsboro refinery, on 15 days in 2014, making a total of 17 separate barge shipments containing approximately 35.7 million gallons of crude oil in total. On April 28, 2017, DCR appealed the Notice of Penalty Assessment and Secretary’s Order. To the extent that the penalty and Secretary’s Order are upheld, there will not be a material adverse effect on the Company’s financial position, results of operations or cash flows. On December 28, 2016, DNREC issued a Coastal Zone Act permit (the “Ethanol permit”) to DCR allowing the utilization of existing tanks and existing marine loading equipment at their existing facilities to enable denatured ethanol to be loaded from storage tanks to marine vessels and shipped to offsite facilities. On January 13, 2017, the issuance of the Ethanol Permit was appealed by two environmental groups. On February 27, 2017, the Coastal Zone Industrial Board held a public hearing and dismissed the appeal, determining that the appellants did not have standing. The final opinion and order of the Board was issued March 16, 2017. The appellants filed an appeal of the Board’s decision with the Delaware Superior Court on March 30, 2017. On February 3, 2011, EPA sent a request for information pursuant to Section 114 of the Clean Air Act to the Paulsboro refinery with respect to compliance with EPA standards governing flaring. The refinery and the EPA have reached agreement on settlement, which includes a civil penalty of $180. On July 13, 2017, the U.S. Department of Justice filed with the Court the motion to enter the consent decree. The refinery is waiting for the Court to take action on the motion, at which point it will be officially lodged. On February 14, 2017, the New Jersey Department of Environmental Protection (“NJDEP”) submitted a proposed Administrative Consent Order (“ACO”) which covers air emission violations from 2013 through 2016, and work practice standards that were not subject to an affirmative defense at the Paulsboro refinery. In settlement of the violations, the NJDEP has proposed that the Paulsboro refinery pay a civil administrative penalty of $313, which includes $153 for a supplemental environmental project. This offer was accepted. The supplemental environmental project has already been completed, and the remaining $160 was paid to NJDEP in June 2017. In connection with the acquisition of the Torrance refinery and related logistics assets, the Company assumed certain pre-existing environmental liabilities totaling $139,827 as of June 30, 2017 ($142,456 as of December 31, 2016), related to certain environmental remediation obligations to address existing soil and groundwater contamination and monitoring and other clean-up activities, which reflects the current estimated cost of the remediation obligations. The current portion of the environmental liability is recorded in Accrued expenses and the non-current portion is recorded in Other long-term liabilities. In addition, in connection with the acquisition of the Torrance refinery and related logistics assets, the Company purchased a ten year, $100,000 environmental insurance policy to insure against unknown environmental liabilities. Furthermore, in connection with the acquisition, the Company assumed responsibility for certain specified environmental matters that occurred prior to the Company’s ownership of the refinery. Specifically, the Company assumed responsibility for specified NOVs issued by the Southern California Air Quality Management District (“SCAQMD”) in various years before the Company’s ownership. Additionally, subsequent to the acquisition, the Company received further NOVs from the SCAQMD as well as from the City of Torrance and the City of Torrance Fire Department related to alleged operational violations, emission discharges and/or flaring incidents at the refinery. With the exception of one NOV for which a proposed settlement is less than $100, no settlement or penalty demands have been received to date with respect to the other NOVs. As the ultimate outcomes are uncertain, the Company cannot currently estimate the final amount or timing of their resolution. It is reasonably possible that SCAQMD and/or the City of Torrance will assess penalties in these matters but any such amount is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. The Company’s operations and many of the products it manufactures are subject to certain specific requirements of the Clean Air Act (the “CAA”) and related state and local regulations. The CAA contains provisions that require capital expenditures for the installation of certain air pollution control devices at the Company’s refineries. Subsequent rule making authorized by the CAA or similar laws or new agency interpretations of existing rules, may necessitate additional expenditures in future years. In 2010, New York State adopted a Low-Sulfur Heating Oil mandate that, beginning July 1, 2012, requires all heating oil sold in New York State to contain no more than 15 parts per million (“PPM”) sulfur. Since July 1, 2012, other states in the Northeast market began requiring heating oil sold in their state to contain no more than 15 PPM sulfur. Currently, all of the Northeastern states and Washington DC have adopted sulfur controls on heating oil. Most of the Northeastern states will now require heating oil with 15 PPM or less sulfur by July 1, 2018 (except for Pennsylvania and Maryland - where less than 500 ppm sulfur is required). All of the heating oil the Company currently produces meets these specifications. The mandate and other requirements do not currently have a material impact on the Company’s financial position, results of operations or cash flows. The EPA issued the final Tier 3 Gasoline standards on March 3, 2014 under the CAA. This final rule establishes more stringent vehicle emission standards and further reduces the sulfur content of gasoline starting in January 2017. The new standard is set at 10 PPM sulfur in gasoline on an annual average basis starting January 1, 2017, with a credit trading program to provide compliance flexibility. The EPA responded to industry comments on the proposed rule and maintained the per gallon sulfur cap on gasoline at the existing 80 PPM cap. The refineries are complying with these new requirements as planned, either directly or using flexibility provided by sulfur credits generated or purchased in advance as an economic optimization. The standards set by the new rule are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. The EPA published the final 2014-2016 standards under the Renewable Fuels Standard (“RFS”) late in 2015 and issued final 2017 RFS standards in November 2016. In July 2017, the EPA issued proposed 2018 RFS standards that, while the Company is still reviewing, appear to slightly reduce renewable volume standards from final 2017 levels. It is not clear that renewable fuel producers will be able to produce the volumes of these fuels required for blending in accordance with the 2017 standards. The final 2017 cellulosic standard is at approximately 135% of the 2016 standard. It is likely that cellulosic RIN production will be lower than needed forcing obligated parties, such as the Company, to purchase cellulosic “waiver credits” to comply in 2017 (the waiver credit option by regulation is only available for the cellulosic standard). The advanced and total RIN requirements were raised (by 7% and 3%, respectively) above the original proposed level in May 2016. Production of advanced RINs has been below what is needed for compliance in 2016. Obligated parties, such as the Company, will likely be relying on the nesting feature of the biodiesel RIN to comply with the advanced standard in 2017. While the Company believes that total RIN production will be adequate for 2016 needs, the new 2017 standard will put obligated parties up against the E10 blendwall leaving little flexibility. Compliance in 2017 will likely rely on obligated parties drawing down the supply of excess RINs collectively known as the “RIN bank” and could tighten the RIN market potentially raising RIN prices further. The Company is supporting a proposal to change the point of obligation under the RFS program to the “blender” of renewable fuels, of which the new presidential administration may be supportive. Depending on how the new administration addresses this proposal and any future changes to the RFS 2 program, there could be a material impact on the Company’s cost of compliance with RFS 2. In addition, on December 1, 2015 the EPA finalized revisions to an existing air regulation concerning Maximum Achievable Control Technologies (“MACT”) for Petroleum Refineries. The regulation requires additional continuous monitoring systems for eligible process safety valves relieving to atmosphere, minimum flare gas heat (Btu) content, and delayed coke drum vent controls to be installed by January 30, 2019. In addition, a program for ambient fence line monitoring for benzene will need to be implemented by January 30, 2018. The Company is currently evaluating the final standards to evaluate the impact of this regulation, and at this time does not anticipate it will have a material impact on the Company’s financial position, results of operations or cash flows. The EPA published a Final Rule to the Clean Water Act (“CWA”) Section 316(b) in August 2014 regarding cooling water intake structures, which includes requirements for petroleum refineries. The purpose of this rule is to prevent fish from being trapped against cooling water intake screens (impingement) and to prevent fish from being drawn through cooling water systems (entrainment). Facilities will be required to implement Best Technology Available (“BTA”) as soon as possible, but state agencies have the discretion to establish implementation time lines. The Company continues to evaluate the impact of this regulation, and at this time does not anticipate it having a material impact on the Company’s financial position, results of operations or cash flows. As a result of the Torrance Acquisition, the Company is subject to greenhouse gas emission control regulations in the state of California pursuant to Assembly Bill 32 (“AB32”). AB32 imposes a statewide cap on greenhouse gas emissions, including emissions from transportation fuels, with the aim of returning the state to 1990 emission levels by 2020. AB32 is implemented through two market mechanisms including the Low Carbon Fuel Standard (“LCFS”) and Cap and Trade, which was extended for an additional ten years to 2030 in July 2017. The Company is responsible for the AB32 obligations related to the Torrance refinery beginning on July 1, 2016 and must purchase emission credits to comply with these obligations. Additionally, in September 2016, the state of California enacted Senate Bill 32 (“SB32”) which further reduces greenhouse gas emissions targets to 40 percent below 1990 levels by 2030. However, subsequent to the acquisition, the Company is recovering the majority of these costs from its customers, and as such does not expect this obligation to materially impact the Company’s financial position, results of operations, or cash flows. To the degree there are unfavorable changes to AB32 or SB32 regulations or the Company is unable to recover such compliance costs from customers, these regulations could have a material adverse effect on our financial position, results of operations and cash flows. On February 15, 2017, the Company received another notification that EPA records indicated that PBF Holding used potentially invalid RINs that were in fact verified under the EPA’s RIN Quality Assurance Program (“QAP”) by an independent auditor as QAP A RINs. Under the regulations, use of potentially invalid QAP A RINs provided the user with an affirmative defense from civil penalties provided certain conditions are met. The Company has asserted the affirmative defense and if accepted by the EPA will not be required to replace these RINs and will not be subject to civil penalties under the program. It is reasonably possible that the EPA will not accept the Company’s defense and may assess penalties in these matters but any such amount is not expected to have a material impact on the Company’s financial position, results of operations or cash flows. The Company is also currently subject to certain other existing environmental claims and proceedings. The Company believes that there is only a remote possibility that future costs related to any of these other known contingent liability exposures would have a material impact on its financial position, results of operations or cash flows. PBF LLC Limited Liability Company Agreement The holders of limited liability company interests in PBF LLC, including PBF Energy, generally have to include for purposes of calculating their U.S. federal, state and local income taxes their share of any taxable income of PBF LLC, regardless of whether such holders receive cash distributions from PBF LLC. PBF Energy ultimately may not receive cash distributions from PBF LLC equal to its share of such taxable income or even equal to the actual tax due with respect to that income. For example, PBF LLC is required to include in taxable income PBF LLC’s allocable share of PBFX’s taxable income and gains (such share to be determined pursuant to the partnership agreement of PBFX), regardless of the amount of cash distributions received by PBF LLC from PBFX, and such taxable income and gains will flow-through to PBF Energy to the extent of its allocable share of the taxable income of PBF LLC. As a result, at certain times, the amount of cash otherwise ultimately available to PBF Energy on account of its indirect interest in PBFX may not be sufficient for PBF Energy to pay the amount of taxes it will owe on account of its indirect interests in PBFX. Taxable income of PBF LLC generally is allocated to the holders of PBF LLC units (including PBF Energy) pro-rata in accordance with their respective share of the net profits and net losses of PBF LLC. In general, PBF LLC is required to make periodic tax distributions to the members of PBF LLC, including PBF Energy, pro-rata in accordance with their respective percentage interests for such period (as determined under the amended and restated limited liability company agreement of PBF LLC), subject to available cash and applicable law and contractual restrictions (including pursuant to our debt instruments) and based on certain assumptions. Generally, these tax distributions are required to be in an amount equal to our estimate of the taxable income of PBF LLC for the year multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate prescribed for an individual or corporate resident in New York, New York (taking into account the nondeductibility of certain expenses). If, with respect to any given calendar year, the aggregate periodic tax distributions were less than the actual taxable income of PBF LLC multiplied by the assumed tax rate, PBF LLC is required to make a “true up” tax distribution, no later than March 15 of the following year, equal to such difference, subject to the available cash and borrowings of PBF LLC. PBF LLC generally obtains funding to pay its tax distributions by causing PBF Holding to distribute cash to PBF LLC and from distributions it receives from PBFX. Tax Receivable Agreement PBF Energy (the Company’s indirect parent) entered into a tax receivable agreement with the PBF LLC Series A and PBF LLC Series B Unit holders (the “Tax Receivable Agreement”) that provides for the payment by PBF Energy to such persons of an amount equal to 85% of the amount of the benefits, if any, that PBF Energy is deemed to realize as a result of (i) increases in tax basis, as described below, and (ii) certain other tax benefits related to entering into the Tax Receivable Agreement, including tax benefits attributable to payments under the Tax Receivable Agreement. For purposes of the Tax Receivable Agreement, the benefits deemed realized by PBF Energy will be computed by comparing the actual income tax liability of PBF Energy (calculated with certain assumptions) to the amount of such taxes that PBF Energy would have been required to pay had there been no increase to the tax basis of the assets of PBF LLC as a result of purchases or exchanges of PBF LLC Series A Units for shares of PBF Energy’s Class A common stock and had PBF Energy not entered into the Tax Receivable Agreement. The term of the Tax Receivable Agreement will continue until all such tax benefits have been utilized or expired unless: (i) PBF Energy exercises its right to terminate the Tax Receivable Agreement, (ii) PBF Energy breaches any of its material obligations under the Tax Receivable Agreement or (iii) certain changes of control occur, in which case all obligations under the Tax Receivable Agreement will generally be accelerated and due as calculated under certain assumptions. The payment obligations under the Tax Receivable Agreement are obligations of PBF Energy and not of PBF LLC or the Company. In general, PBF Energy expects to obtain funding for these annual payments from PBF LLC, primarily through tax distributions, which PBF LLC makes on a pro-rata basis to its owners. Such owners include PBF Energy, which holds a 96.6% interest in PBF LLC as of June 30, 2017 (96.5% as of December 31, 2016). |
EMPLOYEE BENEFIT PLANS |
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The components of net periodic benefit cost related to the Company’s defined benefit plans consisted of the following:
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The tables below present information about the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis and indicate the fair value hierarchy of the inputs utilized to determine the fair values as of June 30, 2017 and December 31, 2016. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty; however, fair value amounts by hierarchy level are presented on a gross basis in the tables below. We have posted cash margin with various counterparties to support hedging and trading activities. The cash margin posted is required by counterparties as collateral deposits and cannot be offset against the fair value of open contracts except in the event of default. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.
The valuation methods used to measure financial instruments at fair value are as follows:
Non-qualified pension plan assets are measured at fair value using a market approach based on published net asset values of mutual funds as a practical expedient. As of June 30, 2017 and December 31, 2016, $9,599 and $9,440, respectively, were included within Deferred charges and other assets, net for these non-qualified pension plan assets. The table below summarizes the changes in fair value measurements of commodity contracts categorized in Level 3 of the fair value hierarchy:
There were no transfers between levels during the three and six months ended June 30, 2017 or 2016. Fair value of debt The table below summarizes the fair value and carrying value of debt as of June 30, 2017 and December 31, 2016.
(a) The estimated fair value, categorized as a Level 2 measurement, was calculated based on the present value of future expected payments utilizing implied current market interest rates based on quoted prices of the senior secured notes and senior notes. (b) The estimated fair value approximates carrying value, categorized as a Level 2 measurement, as these borrowings bear interest based upon short-term floating market interest rates. (c) Catalyst leases are valued using a market approach based upon commodity prices for similar instruments quoted in active markets and are categorized as a Level 2 measurement. The Company has elected the fair value option for accounting for its catalyst lease repurchase obligations as the Company’s liability is directly impacted by the change in fair value of the underlying catalyst. (d) As discussed in “Note 5 - Long-term Debt”, these notes became unsecured following the Collateral Fall-Away Event on May 30, 2017. |
DERIVATIVES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | DERIVATIVES The Company uses derivative instruments to mitigate certain exposures to commodity price risk. The Company entered into the A&R Intermediation Agreements that contain purchase obligations for certain volumes of intermediates and refined products. The purchase obligations related to intermediates and refined products under these agreements are derivative instruments that have been designated as fair value hedges in order to hedge the commodity price volatility of certain refinery inventory. The fair value of these purchase obligation derivatives is based on market prices of the underlying intermediates and refined products. The level of activity for these derivatives is based on the level of operating inventories. As of June 30, 2017, there were 3,005,137 barrels of intermediates and refined products (2,942,348 barrels at December 31, 2016) outstanding under these derivative instruments designated as fair value hedges. These volumes represent the notional value of the contract. The Company also enters into economic hedges primarily consisting of commodity derivative contracts that are not designated as hedges and are used to manage price volatility in certain crude oil and feedstock inventories as well as crude oil, feedstock, and refined product sales or purchases. The objective in entering into economic hedges is consistent with the objectives discussed above for fair value hedges. As of June 30, 2017, there were 10,566,000 barrels of crude oil and 8,732,000 barrels of refined products (5,950,000 and 2,831,000, respectively, as of December 31, 2016), outstanding under short and long term commodity derivative contracts not designated as hedges representing the notional value of the contracts. The following tables provide information about the fair values of these derivative instruments as of June 30, 2017 and December 31, 2016 and the line items in the condensed consolidated balance sheet in which the fair values are reflected.
The following table provides information about the gains or losses recognized in income on these derivative instruments and the line items in the condensed consolidated statement of operations in which such gains and losses are reflected.
The Company had no ineffectiveness related to the Company’s fair value hedges for the three and six months ended June 30, 2017 or 2016. |
SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Dividend Declared On August 3, 2017, PBF Energy, PBF Holding’s indirect parent, announced a dividend of $0.30 per share on its outstanding Class A common stock. The dividend is payable on August 31, 2017 to PBF Energy Class A common stockholders of record at the close of business on August 15, 2017. If necessary, PBF Holding will make a distribution of up to approximately $34,100 to PBF LLC, which in turn will make pro-rata distributions to its members, including PBF Energy. PBF Energy will then use this distribution to fund the dividend payments to the stockholders of PBF Energy. |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDINGS |
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Condensed Financial Information of Subsidiary Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDINGS | CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING PBF Services Company, Delaware City Refining Company LLC, PBF Power Marketing LLC, Paulsboro Refining Company LLC, Toledo Refining Company LLC, Chalmette Refining, L.L.C., PBF Energy Western Region LLC, Torrance Refining Company LLC, Torrance Logistics Company LLC and PBF Investments LLC are 100% owned subsidiaries of PBF Holding and serve as guarantors of the obligations under the senior notes. These guarantees are full and unconditional and joint and several. For purposes of the following footnote, PBF Holding is referred to as “Issuer”. The indentures dated November 24, 2015 and May 30, 2017, among PBF Holding, PBF Finance, the guarantors party thereto and Wilmington Trust, National Association, governs subsidiaries designated as “Guarantor Subsidiaries”. PBF Energy Limited, PBF Transportation Company LLC, PBF Rail Logistics Company LLC, MOEM Pipeline LLC, Collins Pipeline Company, T&M Terminal Company, TVP Holding Company LLC (“TVP Holding”), Torrance Basin Pipeline Company LLC and Torrance Pipeline Company LLC are consolidated subsidiaries of the Company that are not guarantors of the Senior Notes. Additionally, our 50% equity investment in Torrance Valley Pipeline Company, held by TVP Holding is included in our Non-Guarantor financial position and results of operations and cash flows as TVP Holding is not a guarantor of the Senior Notes. The Senior Notes were co-issued by PBF Finance. For purposes of the following footnote, PBF Finance is referred to as “Co-Issuer.” The Co-Issuer has no independent assets or operations. The following supplemental combining and condensed consolidating financial information reflects the Issuer’s separate accounts, the combined accounts of the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, the combining and consolidating adjustments and eliminations and the Issuer’s consolidated accounts for the dates and periods indicated. For purposes of the following combining and consolidating information, the Issuer’s investment in its subsidiaries and the Guarantor subsidiaries’ investments in their subsidiaries are accounted for under the equity method of accounting. CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)
CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF CASH FLOW (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF CASH FLOW (UNAUDITED)
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DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies) |
6 Months Ended |
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Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | Recently Adopted Accounting Guidance Effective January 1, 2017, the Company adopted Accounting Standard Update (“ASU”) No. 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments (a consensus of the FASB Emerging Issues Task Force)” (“ASU 2016-06”). ASU 2016-6 was issued in March 2016 by the Financial Accounting Standards Board (“FASB”) to increase consistency in practice in applying guidance on determining if an embedded derivative is clearly and closely related to the economic characteristics of the host contract, specifically for assessing whether call (put) options that can accelerate the repayment of principal on a debt instrument meet the clearly and closely related criterion. The Company’s adoption of this guidance did not materially impact its consolidated financial statements. Effective January 1, 2017, the Company adopted ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 was issued by the FASB in March 2016 to simplify certain aspects of the accounting for share-based payments to employees. The guidance in ASU 2016-09 requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled rather than recording excess tax benefits or deficiencies in additional paid-in capital. The guidance in ASU 2016-09 also allows an employer to repurchase more of an employee’s shares than it could prior to its adoption for tax withholding purposes without triggering liability accounting and to make a policy election to account for forfeitures as they occur. The Company’s adoption of this guidance did not materially impact its consolidated financial statements. Effective January 1, 2017, the Company adopted ASU No. 2016-17, “Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control” (“ASU 2016-17”). ASU 2016-17 was issued by the FASB in October 2016 to amend the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (“VIE”) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The amendments in this ASU do not change the characteristics of a primary beneficiary in current GAAP. The amendments in this ASU require that a reporting entity, in determining whether it satisfies the second characteristic of a primary beneficiary, include all of its direct variable interests in a VIE and, on a proportionate basis, its indirect variable interests in a VIE held through related parties, including related parties that are under common control with the reporting entity. The Company’s adoption of this guidance did not materially impact its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”), which provides guidance to assist entities with evaluating when a set of transferred assets and activities is a business. Under ASU 2017-01, it is expected that the definition of a business will be narrowed and more consistently applied. ASU 2017-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments in this ASU should be applied prospectively on or after the effective date. Early adoption of ASU 2017-01 is permitted and the Company early adopted the new standard in its consolidated financial statements and related disclosures effective January 1, 2017. The Company’s adoption of this guidance did not materially impact its consolidated financial statements. Recent Accounting Pronouncements In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date of ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”) for all entities by one year. Additional ASUs have been issued in 2016 that provide certain implementation guidance related to ASU 2014-09 (collectively, the Company refers to ASU 2014-09 and these additional ASUs as the “Updated Revenue Recognition Guidance”). The Updated Revenue Recognition Guidance will replace most existing revenue recognition guidance in GAAP when it becomes effective. Under ASU 2015-14, this guidance becomes effective for interim and annual periods beginning after December 15, 2017 and permits the use of either the retrospective or modified retrospective transition method. Under ASU 2015-14, early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company has established a working group to assess the Updated Revenue Recognition Guidance, including its impact on the Company’s business processes, accounting systems, controls and financial statement disclosures. The Company’s preliminary expectation is that it will adopt this guidance using the modified retrospective method whereby a cumulative effect adjustment is recognized upon adoption and the Updated Revenue Recognition Guidance is applied prospectively. The Company will not early adopt this new guidance. The working group is progressing through its implementation plan and continues to evaluate the impact of this new standard on the Company’s consolidated financial statements and related disclosures. Although the Company’s analysis of the new standard is still in process and interpretative and industry specific guidance is still developing, the Company currently does not expect the new standard to have a material impact on the amount or timing of revenues recognized for the majority of its revenue arrangements. However, it is expected that the new standard will have some impact on presentation and disclosures in its financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), to increase the transparency and comparability about leases among entities. The new guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. Early adoption is permitted. The Company has established a working group to study and lead implementation of the new guidance in ASU 2016-02. This working group was formed during 2016 and has begun the process of compiling a central repository for all leases entered into by the Company and its subsidiaries for further analysis as the implementation project progresses. It is not anticipated that the Company will early adopt this new guidance. The working group continues to evaluate the impact of this new standard on its consolidated financial statements and related disclosures. At this time, the Company has identified that the most significant impacts of this new guidance will be to bring nearly all leases on its balance sheet with “right of use assets” and “lease obligation liabilities” as well as accelerating the interest expense component of financing leases. While the assessment of the impacts arising from this standard is progressing, it remains in its early stages. Accordingly, the Company has not fully determined the impacts on its business processes, controls or financial statement disclosures. In March 2017, the FASB issued ASU No. 2017-07, “Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”), which provides guidance to improve the reporting of net benefit cost in the income statement and on the components eligible for capitalization in assets. Under the new guidance, employers will present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period. Only the service cost component will be eligible for capitalization in assets. Additionally, under this guidance, employers will present the other components of the net periodic benefit cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income, if one is presented. These components will not be eligible for capitalization in assets. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The guidance includes a practical expedient allowing entities to estimate amounts for comparative periods using the information previously disclosed in their pension and other postretirement benefit plan note to the financial statements. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. In May 2017, the FASB issued ASU No. 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”), which provides guidance to increase clarity and reduce both diversity in practice and cost and complexity when applying the existing accounting guidance on changes to the terms or conditions of a share-based payment award. The amendments in ASU 2017-09 require an entity to account for the effects of a modification unless all the following are met: (i) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The guidance in ASU 2017-09 should be applied prospectively. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The Company will apply the guidance prospectively for any modifications to its stock compensation plans occurring after the effective date of the new standard. |
ACQUISITIONS (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of purchase consideration given | The total purchase consideration and the fair values of the assets and liabilities at the acquisition date were as follows:
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Schedule of assets acquired and liabilities assumed | The following table summarizes the amounts recognized for assets acquired and liabilities assumed as of the acquisition date:
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Schedule of pro forma information |
The unaudited amount of revenues and net loss above have been calculated after conforming accounting policies of the Torrance refinery and related logistics assets to those of the Company and certain one-time adjustments |
INVENTORIES (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories consisted of the following:
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ACCRUED EXPENSES (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued expenses | Accrued expenses consisted of the following:
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INCOME TAXES INCOME TAX EXPENSE (Tables) |
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INCOME TAX EXPENSE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of income tax provision (benefit) |
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RELATED PARTY TRANSACTIONS (Tables) |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party transactions | A summary of revenue and expense transactions with PBFX is as follows:
These commercial agreements (as defined in the table below) with PBFX include:
____________________
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EMPLOYEE BENEFIT PLANS (Tables) |
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Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of net periodic benefit cost | The components of net periodic benefit cost related to the Company’s defined benefit plans consisted of the following:
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FAIR VALUE MEASUREMENTS (Tables) |
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The tables below present information about the Company’s financial assets and liabilities measured and recorded at fair value on a recurring basis and indicate the fair value hierarchy of the inputs utilized to determine the fair values as of June 30, 2017 and December 31, 2016. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty; however, fair value amounts by hierarchy level are presented on a gross basis in the tables below. We have posted cash margin with various counterparties to support hedging and trading activities. The cash margin posted is required by counterparties as collateral deposits and cannot be offset against the fair value of open contracts except in the event of default. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.
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Schedule of Effect of Significant Unobservable Inputs | The table below summarizes the changes in fair value measurements of commodity contracts categorized in Level 3 of the fair value hierarchy:
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Schedule of Fair value of Debt | The table below summarizes the fair value and carrying value of debt as of June 30, 2017 and December 31, 2016.
(a) The estimated fair value, categorized as a Level 2 measurement, was calculated based on the present value of future expected payments utilizing implied current market interest rates based on quoted prices of the senior secured notes and senior notes. (b) The estimated fair value approximates carrying value, categorized as a Level 2 measurement, as these borrowings bear interest based upon short-term floating market interest rates. (c) Catalyst leases are valued using a market approach based upon commodity prices for similar instruments quoted in active markets and are categorized as a Level 2 measurement. The Company has elected the fair value option for accounting for its catalyst lease repurchase obligations as the Company’s liability is directly impacted by the change in fair value of the underlying catalyst. (d) As discussed in “Note 5 - Long-term Debt”, these notes became unsecured following the Collateral Fall-Away Event on May 30, 2017. |
DERIVATIVES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Derivative Instruments | The following tables provide information about the fair values of these derivative instruments as of June 30, 2017 and December 31, 2016 and the line items in the condensed consolidated balance sheet in which the fair values are reflected.
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Schedule of Derivative Instruments, Gain (Loss) Recognized in Income | The following table provides information about the gains or losses recognized in income on these derivative instruments and the line items in the condensed consolidated statement of operations in which such gains and losses are reflected.
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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDINGS (Tables) |
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Condensed Financial Information of Subsidiary Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)
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Condensed Income Statement | CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
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Condensed Consolidating Statement of Cash Flow | CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF CASH FLOW (UNAUDITED)
14. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENT OF CASH FLOW (UNAUDITED)
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DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2017
USD ($)
segment
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2016 |
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Description of Business [Line Items] | |||||
Number of Reportable Segments | segment | 1 | ||||
Less: net income attributable to noncontrolling interests | $ 267 | $ 90 | $ 380 | $ 393 | |
Income tax expense (benefit) | $ 5,898 | $ (5,277) | $ 6,332 | $ 26,996 | |
PBF Energy [Member] | Class A Common Stock [Member] | |||||
Description of Business [Line Items] | |||||
Percentage of ownership in PBF LLC | 96.60% | 96.60% | 96.50% | ||
Torrance Valley Pipeline Company [Member] | |||||
Description of Business [Line Items] | |||||
Ownership percentage | 50.00% | 50.00% |
ACQUISITIONS Purchase Price (Details) $ in Thousands |
Jul. 01, 2016
USD ($)
refinery
|
Jun. 30, 2016
refinery
|
---|---|---|
Business Acquisition [Line Items] | ||
Number Of Operating Refineries | refinery | 5 | 4 |
Torrance Refinery [Member] | ||
Business Acquisition [Line Items] | ||
Gross purchase price | $ 537,500 | |
Working capital | 450,582 | |
Business Combination, Consideration Transferred, Post Close Purchase Price Adjustments | (16,150) | |
Consideration transferred | $ 971,932 |
ACQUISITIONS Acquired assets and liabilities (Details) - Torrance Refinery [Member] $ in Thousands |
Jul. 01, 2016
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Inventories | $ 404,542 |
Prepaid expenses and other current assets | 982 |
Property, plant and equipment | 704,633 |
Deferred charges and other assets, net | 68,053 |
Accounts payable | (2,688) |
Accrued expenses | (64,137) |
Other long-term liabilities | (139,453) |
Fair value of net assets acquired | $ 971,932 |
ACQUISITIONS Proforma information for acquisition (Details) - Torrance Refinery [Member] $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Business Acquisition [Line Items] | |
Pro forma revenues | $ 7,734,969 |
Pro forma net income attributable to PBF Holding Company LLC. | $ (121,369) |
ACQUISITIONS Other details for acquisition (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 01, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Nov. 01, 2015 |
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Business Acquisition [Line Items] | ||||||
Acquisition related costs | $ 94 | $ 2,410 | $ 466 | $ 7,134 | ||
Torrance Refinery [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred | $ 521,350 | |||||
Working capital | $ 450,582 | |||||
Chalmette Refining L.L.C. [Member] | PBF Energy Inc. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage | 100.00% |
INVENTORIES (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
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Inventory [Line Items] | ||||||||
Crude oil and feedstocks | $ 1,307,816,000 | $ 1,307,816,000 | $ 1,102,007,000 | |||||
Refined products and blendstocks | 1,235,980,000 | 1,235,980,000 | 1,267,861,000 | |||||
Warehouse stock and other | 94,490,000 | 94,490,000 | 89,680,000 | |||||
Inventory, Gross | 2,638,286,000 | 2,638,286,000 | 2,459,548,000 | |||||
Lower of cost or market adjustment | (763,122,000) | $ 900,493,000 | (763,122,000) | $ 900,493,000 | $ (612,027,000) | (595,988,000) | $ (1,058,273,000) | $ 1,117,336 |
Inventories | 1,875,164,000 | 1,875,164,000 | 1,863,560,000 | |||||
Operating Income (Loss) | 142,274,000 | (209,254,000) | 174,136,000 | (179,255,000) | ||||
Net income (loss) | (205,376,000) | 181,504,000 | (270,916,000) | 83,076,000 | ||||
Titled Inventory [Member] | ||||||||
Inventory [Line Items] | ||||||||
Crude oil and feedstocks | 1,307,816,000 | 1,307,816,000 | 1,102,007,000 | |||||
Refined products and blendstocks | 935,041,000 | 935,041,000 | 915,397,000 | |||||
Warehouse stock and other | 94,490,000 | 94,490,000 | 89,680,000 | |||||
Inventory, Gross | 2,337,347,000 | 2,337,347,000 | 2,107,084,000 | |||||
Lower of cost or market adjustment | (650,702,000) | (650,702,000) | (492,415,000) | |||||
Inventories | 1,686,645,000 | 1,686,645,000 | 1,614,669,000 | |||||
Inventory Supply and Offtake Arrangements [Member] | ||||||||
Inventory [Line Items] | ||||||||
Crude oil and feedstocks | 0 | 0 | 0 | |||||
Refined products and blendstocks | 300,939,000 | 300,939,000 | 352,464,000 | |||||
Warehouse stock and other | 0 | 0 | 0 | |||||
Inventory, Gross | 300,939,000 | 300,939,000 | 352,464,000 | |||||
Lower of cost or market adjustment | (112,420,000) | (112,420,000) | (103,573,000) | |||||
Inventories | 188,519,000 | 188,519,000 | $ 248,891,000 | |||||
Scenario, Adjustment [Member] | ||||||||
Inventory [Line Items] | ||||||||
Operating Income (Loss) | 151,095,000 | 157,780,000 | 167,134,000 | (216,843) | ||||
Net income (loss) | $ 151,000 | $ 158,000 | $ 167,000 | $ 217,000 |
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Accrued Expenses: | ||
Inventory-related accruals | $ 778,746 | $ 810,027 |
Inventory intermediation arrangements | 233,455 | 225,524 |
Renewable energy credit and emissions obligations | 172,331 | 70,158 |
Accrued transportation costs | 83,312 | 89,830 |
Refinery Operating Accruals | 32,326 | 28,670 |
Excise and sales tax payable | 100,998 | 86,046 |
Accrued utilities | 28,914 | 44,190 |
Accrued interest | 9,047 | 28,934 |
Accrued salaries and benefits | 15,961 | 17,466 |
Accrued capital expenditures | 75,711 | 33,610 |
Customer deposits | 23,912 | 9,215 |
Environmental liabilities | 8,902 | 8,882 |
Other | 30,685 | 10,177 |
Total accrued expenses | $ 1,594,300 | $ 1,462,729 |
LONG-TERM DEBT (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2017 |
May 30, 2017 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | |||
Long-term Debt | $ 1,654,158 | $ 1,601,836 | |
2025 Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 725,000 | ||
Debt instrument, interest rate | 7.30% | ||
Proceeds from Debt, Net of Issuance Costs | $ 712,586 | ||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||
2020 Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 8.30% | ||
2023 Senior Secured Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 7.00% |
INCOME TAXES Income Taxes (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2015
subsidiary
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
|
Income Taxes [Line Items] | |||||
Number Of Subsidiaries Acquired | subsidiary | 2 | ||||
Current Income Tax Expense (Benefit) | $ 737 | $ 299 | $ 1,209 | $ (64) | |
Deferred income taxes | 5,161 | (5,576) | 5,123 | 27,060 | |
Income tax expense (benefit) | $ 5,898 | $ (5,277) | $ 6,332 | 26,996 | |
Restatement Adjustment [Member] | Prior period error correction [Member] | PBF Energy Limited [Member] | |||||
Income Taxes [Line Items] | |||||
Current Income Tax Expense (Benefit) | 121 | ||||
Deferred income taxes | $ 30,602 |
AFFILIATE NOTE PAYABLE (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | ||||
Affiliate notes payable | $ 0 | $ 86,298 | ||
Forgiveness of related party debt | $ 86,298 | $ 0 | $ 86,298 | $ 379,947 |
Notes Payable, Other Payables [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 2.50% | |||
Debt instrument, term | 5 years |
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Pension Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 10,144 | $ 7,339 | $ 20,287 | $ 14,679 |
Interest cost | 1,084 | 775 | 2,168 | 1,551 |
Expected return on plan assets | (1,442) | (1,107) | (2,884) | (2,213) |
Amortization of prior service cost | 13 | 13 | 26 | 26 |
Amortization of actuarial loss (gain) | 113 | 194 | 226 | 388 |
Net periodic benefit cost | 9,912 | 7,214 | 19,823 | 14,431 |
Post Retirement Medical Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 316 | 219 | 632 | 439 |
Interest cost | 172 | 133 | 344 | 267 |
Amortization of prior service cost | 161 | 109 | 322 | 218 |
Amortization of actuarial loss (gain) | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 649 | $ 461 | $ 1,298 | $ 924 |
FAIR VALUE MEASUREMENTS (Change in Fair Value at Level 3) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Change in Fair Value Measurement Categorized in Level 3 [Roll Forward] | ||||
Transfers into Level 3 | $ 0 | $ 0 | $ 0 | $ 0 |
Commodity Contract [Member] | ||||
Change in Fair Value Measurement Categorized in Level 3 [Roll Forward] | ||||
Balance at beginning of period | 0 | 1,915,000 | (84,000) | 3,543,000 |
Purchases | 0 | 0 | 0 | 0 |
Settlements | 0 | (746,000) | 45,000 | (1,003,000) |
Unrealized loss included in earnings | 0 | (676,000) | 39,000 | (2,047,000) |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | $ 0 | $ 493,000 | $ 0 | $ 493,000 |
DERIVATIVES (Narrative) (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2017
USD ($)
bbl
|
Jun. 30, 2016
USD ($)
|
Jun. 30, 2017
USD ($)
bbl
|
Jun. 30, 2016
USD ($)
|
Dec. 31, 2016
bbl
|
|
Derivative [Line Items] | |||||
Loss on fair value hedge ineffectiveness | $ | $ 0 | $ 0 | $ 0 | $ 0 | |
Intermediates and Refined Products Inventory [Member] | Fair Value Hedging [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount, volume | 3,005,137 | 3,005,137 | 2,942,348 | ||
Crude Oil Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount, volume | 10,566,000 | 10,566,000 | 5,950,000 | ||
Refined Product Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount, volume | 8,732,000 | 8,732,000 | 2,831,000 |
DERIVATIVES (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Designated as Hedging Instrument [Member] | Inventory Intermediation Agreement Obligation [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Asset/(Liability) | $ 9,165 | $ 6,058 |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | Accounts Receivable [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Asset/(Liability) | $ 19,330 | $ 3,508 |
SUBSEQUENT EVENTS (Details) - PBF Energy [Member] - Subsequent Event [Member] - Class A Common Stock [Member] $ / shares in Units, $ in Thousands |
Aug. 03, 2017
USD ($)
$ / shares
|
---|---|
Subsequent Event [Line Items] | |
Dividends declared per share | $ / shares | $ 0.3 |
Dividends distribution, if necessary (up to) | $ | $ 34,100 |
Label | Element | Value |
---|---|---|
Distribution of assets to parent company | pbf_Distributionofassetstoparentcompany | $ 0 |
Distribution of assets to parent company | pbf_Distributionofassetstoparentcompany | 25,547,000 |
Construction in Progress Expenditures Incurred but Not yet Paid | us-gaap_ConstructionInProgressExpendituresIncurredButNotYetPaid | 8,149,000 |
Construction in Progress Expenditures Incurred but Not yet Paid | us-gaap_ConstructionInProgressExpendituresIncurredButNotYetPaid | $ 127,805,000 |
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