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FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 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 September 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.
 
As of September 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
$
14,458

 
$
—

 
$
—

 
$
14,458

 
N/A

 
$
14,458

Commodity contracts
18,257

 
4,248

 
—

 
22,505

 
(22,505
)
 
—

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
11,671

 
15,850

 
—

 
27,521

 
(22,505
)
 
5,016

Catalyst lease obligations
—

 
46,981

 
—

 
46,981

 
—

 
46,981

Derivatives included with inventory intermediation agreement obligations
—

 
20,601

 
—

 
20,601

 
—

 
20,601


 
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
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:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Balance at beginning of period
$
—

 
$
493

 
$
(84
)
 
$
3,543

Purchases
—

 
—

 
—

 
—

Settlements
—

 
(90
)
 
45

 
(1,093
)
Unrealized gain (loss) included in earnings
—

 
(21
)
 
39

 
(2,068
)
Transfers into Level 3
—

 
—

 
—

 
—

Transfers out of Level 3
—

 
—

 
—

 
—

Balance at end of period
$
—

 
$
382

 
$
—

 
$
382
Schedule of Fair value of Debt
The table below summarizes the fair value and carrying value of debt as of September 30, 2017 and December 31, 2016.
 
September 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

 
514,575

 
500,000

 
498,801

Senior notes due 2025 (a)
725,000

 
740,982

 
—

 
—

Revolving Loan (b)
350,000

 
350,000

 
350,000

 
350,000

PBF Rail Term Loan (b)
30,041

 
30,041

 
35,000

 
35,000

Catalyst leases (c)
46,981

 
46,981

 
45,969

 
45,969

 
1,652,022

 
1,682,579

 
1,601,836

 
1,625,868

Less - Unamortized deferred financing costs
26,821

 
n/a

 
25,277

 
n/a

Long-term debt
$
1,625,201

 
$
1,682,579

 
$
1,576,559

 
$
1,625,868


(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 - Debt”, these notes became unsecured following the Collateral Fall-Away Event on May 30, 2017.