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, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 442,717 | $ | 526,160 | |||
Accounts receivable | 1,031,574 | 951,129 | |||||
Accounts receivable - affiliate | 6,745 | 8,352 | |||||
Inventories | 2,540,277 | 2,213,797 | |||||
Prepaid and other current assets | 51,284 | 49,523 | |||||
Total current assets | 4,072,597 | 3,748,961 | |||||
Property, plant and equipment, net | 2,850,236 | 2,805,390 | |||||
Investment in equity method investee | 169,038 | 171,903 | |||||
Deferred charges and other assets, net | 861,395 | 779,924 | |||||
Total assets | $ | 7,953,266 | $ | 7,506,178 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 634,893 | $ | 572,932 | |||
Accounts payable - affiliate | 31,473 | 40,817 | |||||
Accrued expenses | 1,818,734 | 1,800,859 | |||||
Current debt | 1,298 | 10,987 | |||||
Deferred revenue | 3,657 | 7,495 | |||||
Note payable | 3,200 | 5,621 | |||||
Total current liabilities | 2,493,255 | 2,438,711 | |||||
Long-term debt | 1,610,461 | 1,626,249 | |||||
Deferred tax liabilities | 28,502 | 33,155 | |||||
Other long-term liabilities | 231,767 | 223,961 | |||||
Total liabilities | 4,363,985 | 4,322,076 | |||||
Commitments and contingencies (Note 8) | |||||||
Equity: | |||||||
PBF Holding Company LLC equity | |||||||
Member’s equity | 2,391,321 | 2,359,791 | |||||
Retained earnings | 1,213,798 | 840,431 | |||||
Accumulated other comprehensive loss | (26,654 | ) | (26,928 | ) | |||
Total PBF Holding Company LLC equity | 3,578,465 | 3,173,294 | |||||
Noncontrolling interest | 10,816 | 10,808 | |||||
Total equity | 3,589,281 | 3,184,102 | |||||
Total liabilities and equity | $ | 7,953,266 | $ | 7,506,178 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | $ | 7,440,470 | $ | 5,013,251 | $ | 13,240,071 | $ | 9,763,449 | |||||||
Cost and expenses: | |||||||||||||||
Cost of products and other | 6,512,153 | 4,662,833 | 11,701,759 | 8,914,587 | |||||||||||
Operating expenses (excluding depreciation and amortization expense as reflected below) | 402,751 | 398,485 | 814,198 | 835,253 | |||||||||||
Depreciation and amortization expense | 82,829 | 56,973 | 159,607 | 110,901 | |||||||||||
Cost of sales | 6,997,733 | 5,118,291 | 12,675,564 | 9,860,741 | |||||||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) | 51,756 | 34,904 | 110,026 | 75,367 | |||||||||||
Depreciation and amortization expense | 2,563 | 6,020 | 5,277 | 7,782 | |||||||||||
Equity income in investee | (4,363 | ) | (3,820 | ) | (8,385 | ) | (7,419 | ) | |||||||
Loss on sale of assets | 594 | 29 | 673 | 912 | |||||||||||
Total cost and expenses | 7,048,283 | 5,155,424 | 12,783,155 | 9,937,383 | |||||||||||
Income (loss) from operations | 392,187 | (142,173 | ) | 456,916 | (173,934 | ) | |||||||||
Other income (expense): | |||||||||||||||
Change in fair value of catalyst leases | 4,140 | 1,104 | 4,153 | (1,484 | ) | ||||||||||
Debt extinguishment costs | — | (25,451 | ) | — | (25,451 | ) | |||||||||
Interest expense, net | (33,052 | ) | (32,857 | ) | (66,366 | ) | (63,513 | ) | |||||||
Other non-service components of net periodic benefit cost | 277 | (101 | ) | 555 | (202 | ) | |||||||||
Income (loss) before income taxes | 363,552 | (199,478 | ) | 395,258 | (264,584 | ) | |||||||||
Income tax (benefit) expense | (3,983 | ) | 5,898 | (4,684 | ) | 6,332 | |||||||||
Net income (loss) | 367,535 | (205,376 | ) | 399,942 | (270,916 | ) | |||||||||
Less: net income attributable to noncontrolling interests | 76 | 267 | 8 | 380 | |||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | 367,459 | $ | (205,643 | ) | $ | 399,934 | $ | (271,296 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | 367,535 | $ | (205,376 | ) | $ | 399,942 | $ | (270,916 | ) | |||||
Other comprehensive income: | |||||||||||||||
Unrealized (loss) gain on available for sale securities | (235 | ) | 43 | (235 | ) | 77 | |||||||||
Net gain on pension and other post-retirement benefits | 255 | 287 | 509 | 574 | |||||||||||
Total other comprehensive income | 20 | 330 | 274 | 651 | |||||||||||
Comprehensive income (loss) | 367,555 | (205,046 | ) | 400,216 | (270,265 | ) | |||||||||
Less: comprehensive income attributable to noncontrolling interests | 76 | 267 | 8 | 380 | |||||||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | 367,479 | $ | (205,313 | ) | $ | 400,208 | $ | (270,645 | ) |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 399,942 | $ | (270,916 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | |||||||
Depreciation and amortization | 168,110 | 122,849 | |||||
Stock-based compensation | 9,520 | 10,134 | |||||
Change in fair value of catalyst leases | (4,153 | ) | 1,484 | ||||
Deferred income taxes | (4,653 | ) | 5,123 | ||||
Non-cash change in inventory repurchase obligations | 2,538 | (3,107 | ) | ||||
Non-cash lower of cost or market inventory adjustment | (245,655 | ) | 167,134 | ||||
Debt extinguishment costs | — | 25,451 | |||||
Pension and other post-retirement benefit costs | 23,691 | 21,121 | |||||
Income from equity method investee | (8,385 | ) | (7,419 | ) | |||
Distributions from equity method investee | 8,385 | 12,254 | |||||
Loss on sale of assets | 673 | 912 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (80,445 | ) | 6,121 | ||||
Due to/from affiliates | (7,737 | ) | (13,505 | ) | |||
Inventories | (80,825 | ) | (178,738 | ) | |||
Prepaid and other current assets | (1,761 | ) | (18,038 | ) | |||
Accounts payable | 64,253 | (144,819 | ) | ||||
Accrued expenses | 910 | 106,073 | |||||
Deferred revenue | (3,838 | ) | (7,408 | ) | |||
Other assets and liabilities | (10,025 | ) | (40,525 | ) | |||
Net cash provided by (used in) operations | 230,545 | (205,819 | ) | ||||
Cash flows from investing activities: | |||||||
Expenditures for property, plant and equipment | (110,169 | ) | (179,575 | ) | |||
Expenditures for deferred turnaround costs | (179,194 | ) | (214,375 | ) | |||
Expenditures for other assets | (12,357 | ) | (23,747 | ) | |||
Equity method investment - return of capital | 2,865 | — | |||||
Net cash used in investing activities | $ | (298,855 | ) | $ | (417,697 | ) |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Cash flows from financing activities: | |||||||
Contributions from PBF LLC | $ | 22,000 | $ | 97,000 | |||
Distributions to members | (26,567 | ) | (5,252 | ) | |||
Proceeds from 2025 Senior Notes | — | 725,000 | |||||
Cash paid to extinguish 2020 Senior Secured Notes | — | (690,209 | ) | ||||
Repayments of PBF Rail Term Loan | (3,385 | ) | (3,295 | ) | |||
Proceeds from revolver borrowings | — | 290,000 | |||||
Repayments of revolver borrowings | — | (290,000 | ) | ||||
Repayment of note payable | (2,421 | ) | — | ||||
Catalyst lease settlements | (9,466 | ) | — | ||||
Proceeds from insurance premium financing | 17,398 | — | |||||
Deferred financing costs and other | (12,692 | ) | (12,414 | ) | |||
Net cash (used in) provided by financing activities | (15,133 | ) | 110,830 | ||||
Net decrease in cash and cash equivalents | (83,443 | ) | (512,686 | ) | |||
Cash and cash equivalents, beginning of period | 526,160 | 626,705 | |||||
Cash and cash equivalents, end of period | $ | 442,717 | $ | 114,019 | |||
Supplemental cash flow disclosures | |||||||
Non-cash activities: | |||||||
Accrued and unpaid capital expenditures | $ | 20,119 | $ | 127,805 | |||
Distribution of assets to PBF Energy Company LLC | — | 25,547 | |||||
Conversion of affiliate notes payable to capital contribution | — | 86,298 |
Three Months Ended June 30, 2017 | ||||||||||
As Previously Reported | Adjustments | As Reclassified | ||||||||
Cost and expenses: | ||||||||||
Cost of products and other | $ | 4,662,833 | — | $ | 4,662,833 | |||||
Operating expenses (excluding depreciation and amortization expense as reflected below) (1) | 398,485 | — | 398,485 | |||||||
Depreciation and amortization expense | — | 56,973 | 56,973 | |||||||
Cost of sales | 5,118,291 | |||||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) (1) | 34,904 | — | 34,904 | |||||||
Depreciation and amortization expense | 62,993 | (56,973) | 6,020 | |||||||
Equity income in investee | (3,820) | — | (3,820) | |||||||
Loss on sale of assets | 29 | — | 29 | |||||||
Total cost and expenses | $ | 5,155,424 | $ | 5,155,424 |
Six Months Ended June 30, 2017 | ||||||||||
As Previously Reported | Adjustments | As Reclassified | ||||||||
Cost and expenses: | ||||||||||
Cost of products and other | $ | 8,914,587 | — | $ | 8,914,587 | |||||
Operating expenses (excluding depreciation and amortization expense as reflected below) (1) | 835,253 | — | 835,253 | |||||||
Depreciation and amortization expense | — | 110,901 | 110,901 | |||||||
Cost of sales | 9,860,741 | |||||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) (1) | 75,367 | — | 75,367 | |||||||
Depreciation and amortization expense | 118,683 | (110,901) | 7,782 | |||||||
Equity income in investee | (7,419) | — | (7,419) | |||||||
Loss on sale of assets | 912 | — | 912 | |||||||
Total cost and expenses | $ | 9,937,383 | $ | 9,937,383 |
Three Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Gasoline and distillates | $ | 6,341,757 | $ | 4,154,375 | |||
Feedstocks and other | 404,197 | 310,951 | |||||
Asphalt and blackoils | 397,203 | 287,731 | |||||
Chemicals | 202,552 | 179,076 | |||||
Lubricants | 94,761 | 81,118 | |||||
Total Revenues | $ | 7,440,470 | $ | 5,013,251 |
Six Months Ended June 30, | |||||||
2018 | 2017 | ||||||
Gasoline and distillates | $ | 11,336,077 | $ | 8,243,186 | |||
Asphalt and blackoils | 706,064 | 472,859 | |||||
Feedstocks and other | 642,906 | 535,361 | |||||
Chemicals | 378,660 | 363,499 | |||||
Lubricants | 176,364 | 148,544 | |||||
Total Revenues | $ | 13,240,071 | $ | 9,763,449 |
June 30, 2018 | |||||||||||
Titled Inventory | Inventory Intermediation Agreements | Total | |||||||||
Crude oil and feedstocks | $ | 1,159,842 | $ | — | $ | 1,159,842 | |||||
Refined products and blendstocks | 1,036,028 | 296,142 | 1,332,170 | ||||||||
Warehouse stock and other | 103,066 | — | 103,066 | ||||||||
$ | 2,298,936 | $ | 296,142 | $ | 2,595,078 | ||||||
Lower of cost or market adjustment | (11,751 | ) | (43,050 | ) | (54,801 | ) | |||||
Total inventories | $ | 2,287,185 | $ | 253,092 | $ | 2,540,277 |
December 31, 2017 | |||||||||||
Titled Inventory | Inventory Intermediation Agreements | Total | |||||||||
Crude oil and feedstocks | $ | 1,073,093 | $ | — | $ | 1,073,093 | |||||
Refined products and blendstocks | 1,030,817 | 311,477 | 1,342,294 | ||||||||
Warehouse stock and other | 98,866 | — | 98,866 | ||||||||
$ | 2,202,776 | $ | 311,477 | $ | 2,514,253 | ||||||
Lower of cost or market adjustment | (232,652 | ) | (67,804 | ) | (300,456 | ) | |||||
Total inventories | $ | 1,970,124 | $ | 243,673 | $ | 2,213,797 |
June 30, 2018 | December 31, 2017 | ||||||
Inventory-related accruals | $ | 1,138,913 | $ | 1,151,810 | |||
Inventory intermediation agreements | 227,740 | 244,287 | |||||
Excise and sales tax payable | 176,557 | 118,515 | |||||
Accrued transportation costs | 53,464 | 64,400 | |||||
Renewable energy credit and emissions obligations | 52,390 | 26,231 | |||||
Accrued utilities | 31,647 | 42,189 | |||||
Accrued salaries and benefits | 30,347 | 58,589 | |||||
Accrued refinery maintenance and support costs | 25,578 | 35,674 | |||||
Customer deposits | 22,670 | 16,133 | |||||
Accrued capital expenditures | 14,371 | 17,342 | |||||
Accrued interest | 10,516 | 9,466 | |||||
Environmental liabilities | 6,940 | 7,968 | |||||
Other | 27,601 | 8,255 | |||||
Total accrued expenses | $ | 1,818,734 | $ | 1,800,859 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Current income tax (benefit) expense | $ | (26 | ) | $ | 737 | $ | (31 | ) | $ | 1,209 | ||||||
Deferred income tax (benefit) expense | (3,957 | ) | 5,161 | (4,653 | ) | 5,123 | ||||||||||
Total income tax (benefit) expense | $ | (3,983 | ) | $ | 5,898 | $ | (4,684 | ) | $ | 6,332 |
• | Amended and Restated Rail Agreements - The Delaware City Rail Terminaling Services Agreement and the Delaware West Ladder Rack Terminaling Services Agreement between PBF Holding and Delaware City Terminaling Company LLC were amended effective as of January 1, 2018 (collectively, the “Amended and Restated Rail Agreements”) with the service fees thereunder being adjusted, including the addition of an ancillary fee paid by PBF Holding on an actual cost basis. In determining payments due under the Amended and Restated Rail Agreements, excess volumes throughput under the agreements shall apply against required payments in respect to the minimum throughput commitments on a quarterly basis and, to the extent not previously applied, on an annual basis against the MVCs. |
• | Knoxville Terminals Agreement - On April 16, 2018, PBFX completed the purchase of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial and Plantation pipeline systems and truck loading facilities (the “Knoxville Terminals”) from Cummins Terminals, Inc. (the “Knoxville Terminals Purchase”). In connection with the Knoxville Terminals Purchase, PBF Holding and PBFX entered into a terminal throughput and storage agreement (the “Knoxville Terminals Agreement”) whereby PBFX provides PBF Holding terminaling and storage services at the Knoxville Terminals. The initial term of the Knoxville Terminals Agreement is five years with automatic one-year renewals unless canceled by either party through written notice. Under the Knoxville Terminals Agreement, PBF Holding has a minimum volume commitment for storage and a minimum revenue commitment for throughput. The minimum throughput revenue commitment is $894 for year one, $1,788 for year two and $2,683 for year three and thereafter. The minimum storage commitment is equal to the available shell capacity for the dedicated PBF Holding tanks. If PBF Holding does not throughput or store the aggregate amounts |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reimbursements under affiliate agreements: | |||||||||||||||
Services Agreement | $ | 1,674 | $ | 1,661 | $ | 3,348 | $ | 3,279 | |||||||
Omnibus Agreement | 1,737 | 1,630 | 3,437 | 3,284 | |||||||||||
Total expenses under affiliate agreements | 63,785 | 58,355 | 124,649 | 114,557 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Pension Benefits | 2018 | 2017 | 2018 | 2017 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||||
Service cost | $ | 11,836 | $ | 10,144 | $ | 23,672 | $ | 20,287 | |||||||
Interest cost | 1,449 | 1,084 | 2,896 | 2,168 | |||||||||||
Expected return on plan assets | (2,136 | ) | (1,442 | ) | (4,270 | ) | (2,884 | ) | |||||||
Amortization of prior service cost | 22 | 13 | 43 | 26 | |||||||||||
Amortization of actuarial loss | 72 | 113 | 143 | 226 | |||||||||||
Net periodic benefit cost | $ | 11,243 | $ | 9,912 | $ | 22,484 | $ | 19,823 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
Post-Retirement Medical Plan | 2018 | 2017 | 2018 | 2017 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||||
Service cost | $ | 287 | $ | 316 | $ | 574 | $ | 632 | |||||||
Interest cost | 155 | 172 | 310 | 344 | |||||||||||
Amortization of prior service cost | 161 | 161 | 323 | 322 | |||||||||||
Net periodic benefit cost | $ | 603 | $ | 649 | $ | 1,207 | $ | 1,298 |
As of June 30 2018 | ||||||||||||||||||||||
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 | $ | 13,173 | $ | — | $ | — | $ | 13,173 | N/A | $ | 13,173 | |||||||||||
Commodity contracts | 65,389 | 5,999 | — | 71,388 | (71,388 | ) | — | |||||||||||||||
Liabilities: | ||||||||||||||||||||||
Commodity contracts | 75,477 | 37,397 | — | 112,874 | (71,388 | ) | 41,486 | |||||||||||||||
Catalyst lease obligations | — | 45,430 | — | 45,430 | — | 45,430 | ||||||||||||||||
Derivatives included with inventory intermediation agreement obligations | — | 10,259 | — | 10,259 | — | 10,259 |
As of December 31, 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 | $ | 4,730 | $ | — | $ | — | $ | 4,730 | N/A | $ | 4,730 | |||||||||||
Commodity contracts | 10,031 | 357 | — | 10,388 | (10,388 | ) | — | |||||||||||||||
Liabilities: | ||||||||||||||||||||||
Commodity contracts | 51,673 | 33,035 | — | 84,708 | (10,388 | ) | 74,320 | |||||||||||||||
Catalyst lease obligations | — | 59,048 | — | 59,048 | — | 59,048 | ||||||||||||||||
Derivatives included with inventory intermediation agreement obligations | — | 7,721 | — | 7,721 | — | 7,721 |
• | 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, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | (84 | ) | ||||||
Purchases | — | — | — | — | |||||||||||
Settlements | — | — | — | 45 | |||||||||||
Unrealized gain included in earnings | — | — | — | 39 | |||||||||||
Transfers into Level 3 | — | — | — | — | |||||||||||
Transfers out of Level 3 | — | — | — | — | |||||||||||
Balance at end of period | $ | — | $ | — | $ | — | $ | — |
June 30, 2018 | December 31, 2017 | ||||||||||||||
Carrying value | Fair value | Carrying value | Fair value | ||||||||||||
2025 Senior Notes (a) | $ | 725,000 | $ | 763,255 | $ | 725,000 | $ | 763,945 | |||||||
2023 Senior Notes (a) | 500,000 | 521,660 | 500,000 | 522,101 | |||||||||||
Revolving Credit Agreement (b) | 350,000 | 350,000 | 350,000 | 350,000 | |||||||||||
PBF Rail Term Loan (b) | 24,982 | 24,982 | 28,366 | 28,366 | |||||||||||
Catalyst leases (c) | 45,430 | 45,430 | 59,048 | 59,048 | |||||||||||
1,645,412 | 1,705,327 | 1,662,414 | 1,723,460 | ||||||||||||
Less - Current debt (c) | (1,298 | ) | (1,298 | ) | (10,987 | ) | (10,987 | ) | |||||||
Less - Unamortized deferred financing costs | (33,653 | ) | n/a | (25,178 | ) | n/a | |||||||||
Long-term debt | $ | 1,610,461 | $ | 1,704,029 | $ | 1,626,249 | $ | 1,712,473 |
Description | Balance Sheet Location | Fair Value Asset/(Liability) | ||
Derivatives designated as hedging instruments: | ||||
June 30, 2018: | ||||
Derivatives included with the inventory intermediation agreement obligations | Accrued expenses | $ | (10,259 | ) |
December 31, 2017: | ||||
Derivatives included with the inventory intermediation agreement obligations | Accrued expenses | $ | (7,721 | ) |
Derivatives not designated as hedging instruments: | ||||
June 30, 2018: | ||||
Commodity contracts | Accrued expenses | $ | (41,486 | ) |
December 31, 2017: | ||||
Commodity contracts | Accrued expenses | $ | (74,320 | ) |
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, 2018: | ||||
Derivatives included with the inventory intermediation agreement obligations | Cost of products and other | $ | 6,287 | |
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 six months ended June 30, 2018: | ||||
Derivatives included with the inventory intermediation agreement obligations | Cost of products and other | $ | (2,538 | ) |
For the six months ended June 30, 2017: | ||||
Derivatives included with the inventory intermediation agreement obligations | Cost of products and other | $ | 3,107 | |
Derivatives not designated as hedging instruments: | ||||
For the three months ended June 30, 2018: | ||||
Commodity contracts | Cost of products and other | $ | (33,079 | ) |
For the three months ended June 30, 2017: | ||||
Commodity contracts | Cost of products and other | $ | 14,293 | |
For the six months ended June 30, 2018: | ||||
Commodity contracts | Cost of products and other | $ | (46,360 | ) |
For the six months ended June 30, 2017: | ||||
Commodity contracts | Cost of products and other | $ | 14,684 | |
Hedged items designated in fair value hedges: | ||||
For the three months ended June 30, 2018: | ||||
Intermediate and refined product inventory | Cost of products and other | $ | (6,287 | ) |
For the three months ended June 30, 2017: | ||||
Intermediate and refined product inventory | Cost of products and other | $ | 20,017 | |
For the six months ended June 30, 2018: | ||||
Intermediate and refined product inventory | Cost of products and other | $ | 2,538 | |
For the six months ended June 30, 2017: | ||||
Intermediate and refined product inventory | Cost of products and other | $ | (3,107 | ) |
June 30, 2018 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 400,634 | $ | 16,243 | $ | 25,840 | $ | — | $ | 442,717 | |||||||||
Accounts receivable | 992,378 | 9,071 | 30,125 | — | 1,031,574 | ||||||||||||||
Accounts receivable - affiliate | 2,727 | 3,292 | 726 | — | 6,745 | ||||||||||||||
Inventories | 2,353,720 | — | 186,557 | — | 2,540,277 | ||||||||||||||
Prepaid and other current assets | 18,953 | 30,848 | 1,483 | — | 51,284 | ||||||||||||||
Due from related parties | 31,378,354 | 24,147,941 | 8,296,673 | (63,822,968 | ) | — | |||||||||||||
Total current assets | 35,146,766 | 24,207,395 | 8,541,404 | (63,822,968 | ) | 4,072,597 | |||||||||||||
Property, plant and equipment, net | 19,084 | 2,597,504 | 233,648 | — | 2,850,236 | ||||||||||||||
Investment in subsidiaries | — | 390,529 | — | (390,529 | ) | — | |||||||||||||
Investment in equity method investee | — | — | 169,038 | — | 169,038 | ||||||||||||||
Deferred charges and other assets, net | 24,250 | 837,111 | 34 | — | 861,395 | ||||||||||||||
Total assets | $ | 35,190,100 | $ | 28,032,539 | $ | 8,944,124 | $ | (64,213,497 | ) | $ | 7,953,266 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | 508,073 | $ | 109,942 | $ | 16,878 | $ | — | $ | 634,893 | |||||||||
Accounts payable - affiliate | 30,042 | 1,431 | — | — | 31,473 | ||||||||||||||
Accrued expenses | 1,477,262 | 109,095 | 232,377 | — | 1,818,734 | ||||||||||||||
Current debt | — | 1,298 | — | — | 1,298 | ||||||||||||||
Deferred revenue | 3,630 | 20 | 7 | — | 3,657 | ||||||||||||||
Due to related parties | 26,699,566 | 28,862,202 | 8,261,200 | (63,822,968 | ) | — | |||||||||||||
Note payable | — | 3,200 | — | — | 3,200 | ||||||||||||||
Total current liabilities | 28,718,573 | 29,087,188 | 8,510,462 | (63,822,968 | ) | 2,493,255 | |||||||||||||
Long-term debt | 1,541,649 | 44,132 | 24,680 | — | 1,610,461 | ||||||||||||||
Deferred tax liabilities | — | — | 28,502 | — | 28,502 | ||||||||||||||
Other long-term liabilities | 30,979 | 196,643 | 4,145 | — | 231,767 | ||||||||||||||
Investment in subsidiaries | 1,309,618 | — | — | (1,309,618 | ) | — | |||||||||||||
Total liabilities | 31,600,819 | 29,327,963 | 8,567,789 | (65,132,586 | ) | 4,363,985 | |||||||||||||
Commitments and contingencies (Note 8) | |||||||||||||||||||
Equity: | |||||||||||||||||||
PBF Holding Company LLC equity | |||||||||||||||||||
Member’s equity | 2,391,321 | 1,734,642 | 332,689 | (2,067,331 | ) | 2,391,321 | |||||||||||||
Retained earnings / (accumulated deficit) | 1,213,798 | (3,031,222 | ) | 43,646 | 2,987,576 | 1,213,798 | |||||||||||||
Accumulated other comprehensive loss | (26,654 | ) | (9,660 | ) | — | 9,660 | (26,654 | ) | |||||||||||
Total PBF Holding Company LLC equity | 3,578,465 | (1,306,240 | ) | 376,335 | 929,905 | 3,578,465 | |||||||||||||
Noncontrolling interest | 10,816 | 10,816 | — | (10,816 | ) | 10,816 | |||||||||||||
Total equity | 3,589,281 | (1,295,424 | ) | 376,335 | 919,089 | 3,589,281 | |||||||||||||
Total liabilities and equity | $ | 35,190,100 | $ | 28,032,539 | $ | 8,944,124 | $ | (64,213,497 | ) | $ | 7,953,266 |
December 31, 2017 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 486,568 | $ | 13,456 | $ | 26,136 | $ | — | $ | 526,160 | |||||||||
Accounts receivable | 903,298 | 7,605 | 40,226 | — | 951,129 | ||||||||||||||
Accounts receivable - affiliate | 2,321 | 5,300 | 731 | — | 8,352 | ||||||||||||||
Inventories | 1,982,315 | — | 231,482 | — | 2,213,797 | ||||||||||||||
Prepaid and other current assets | 20,523 | 27,100 | 1,900 | — | 49,523 | ||||||||||||||
Due from related parties | 28,632,914 | 23,302,660 | 6,820,693 | (58,756,267 | ) | — | |||||||||||||
Total current assets | 32,027,939 | 23,356,121 | 7,121,168 | (58,756,267 | ) | 3,748,961 | |||||||||||||
Property, plant and equipment, net | 21,785 | 2,547,229 | 236,376 | — | 2,805,390 | ||||||||||||||
Investment in subsidiaries | — | 413,136 | — | (413,136 | ) | — | |||||||||||||
Investment in equity method investee | — | — | 171,903 | — | 171,903 | ||||||||||||||
Deferred charges and other assets, net | 30,141 | 749,749 | 34 | — | 779,924 | ||||||||||||||
Total assets | $ | 32,079,865 | $ | 27,066,235 | $ | 7,529,481 | $ | (59,169,403 | ) | $ | 7,506,178 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable | $ | 413,829 | $ | 137,149 | $ | 21,954 | $ | — | $ | 572,932 | |||||||||
Accounts payable - affiliate | 39,952 | 865 | — | — | 40,817 | ||||||||||||||
Accrued expenses | 1,409,212 | 122,722 | 268,925 | — | 1,800,859 | ||||||||||||||
Current debt | — | 10,987 | — | — | 10,987 | ||||||||||||||
Deferred revenue | 6,005 | 1,472 | 18 | — | 7,495 | ||||||||||||||
Note payable | — | 5,621 | — | — | 5,621 | ||||||||||||||
Due to related parties | 24,813,299 | 27,166,679 | 6,776,289 | (58,756,267 | ) | — | |||||||||||||
Total current liabilities | 26,682,297 | 27,445,495 | 7,067,186 | (58,756,267 | ) | 2,438,711 | |||||||||||||
Long-term debt | 1,550,206 | 48,024 | 28,019 | — | 1,626,249 | ||||||||||||||
Deferred tax liabilities | — | — | 33,155 | — | 33,155 | ||||||||||||||
Other long-term liabilities | 30,612 | 189,204 | 4,145 | — | 223,961 | ||||||||||||||
Investment in subsidiaries | 632,648 | — | — | (632,648 | ) | — | |||||||||||||
Total liabilities | 28,895,763 | 27,682,723 | 7,132,505 | (59,388,915 | ) | 4,322,076 | |||||||||||||
Commitments and contingencies (Note 8) | |||||||||||||||||||
Equity: | |||||||||||||||||||
PBF Holding Company LLC equity | |||||||||||||||||||
Member’s equity | 2,359,791 | 1,731,268 | 343,940 | (2,075,208 | ) | 2,359,791 | |||||||||||||
Retained earnings / (accumulated deficit) | 840,431 | (2,348,904 | ) | 53,036 | 2,295,868 | 840,431 | |||||||||||||
Accumulated other comprehensive loss | (26,928 | ) | (9,660 | ) | — | 9,660 | (26,928 | ) | |||||||||||
Total PBF Holding Company LLC equity | 3,173,294 | (627,296 | ) | 396,976 | 230,320 | 3,173,294 | |||||||||||||
Noncontrolling interest | 10,808 | 10,808 | — | (10,808 | ) | 10,808 | |||||||||||||
Total equity | 3,184,102 | (616,488 | ) | 396,976 | 219,512 | 3,184,102 | |||||||||||||
Total liabilities and equity | $ | 32,079,865 | $ | 27,066,235 | $ | 7,529,481 | $ | (59,169,403 | ) | $ | 7,506,178 |
Three Months Ended June 30, 2018 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
Revenues | $ | 7,379,226 | $ | 342,061 | $ | 903,603 | $ | (1,184,420 | ) | $ | 7,440,470 | ||||||||
Cost and expenses: | |||||||||||||||||||
Cost of products and other | 6,628,670 | 157,113 | 910,790 | (1,184,420 | ) | 6,512,153 | |||||||||||||
Operating expenses (excluding depreciation and amortization expense as reflected below) | 11 | 394,759 | 7,981 | — | 402,751 | ||||||||||||||
Depreciation and amortization expense | — | 80,906 | 1,923 | — | 82,829 | ||||||||||||||
Cost of sales | 6,628,681 | 632,778 | 920,694 | (1,184,420 | ) | 6,997,733 | |||||||||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) | 43,894 | 6,995 | 867 | — | 51,756 | ||||||||||||||
Depreciation and amortization expense | 2,563 | — | — | — | 2,563 | ||||||||||||||
Equity income in investee | — | — | (4,363 | ) | — | (4,363 | ) | ||||||||||||
Loss on sale of assets | — | 594 | — | — | 594 | ||||||||||||||
Total cost and expenses | 6,675,138 | 640,367 | 917,198 | (1,184,420 | ) | 7,048,283 | |||||||||||||
Income (loss) from operations | 704,088 | (298,306 | ) | (13,595 | ) | — | 392,187 | ||||||||||||
Other income (expense): | |||||||||||||||||||
Equity in earnings of subsidiaries | (304,211 | ) | (9,888 | ) | — | 314,099 | — | ||||||||||||
Change in fair value of catalyst leases | — | 4,140 | — | — | 4,140 | ||||||||||||||
Interest expense, net | (32,248 | ) | (527 | ) | (277 | ) | — | (33,052 | ) | ||||||||||
Other non-service components of net periodic benefit cost | (94 | ) | 370 | 1 | — | 277 | |||||||||||||
Income (loss) before income taxes | 367,535 | (304,211 | ) | (13,871 | ) | 314,099 | 363,552 | ||||||||||||
Income tax benefit | — | — | (3,983 | ) | — | (3,983 | ) | ||||||||||||
Net income (loss) | 367,535 | (304,211 | ) | (9,888 | ) | 314,099 | 367,535 | ||||||||||||
Less: net income attributable to noncontrolling interests | 76 | 76 | — | (76 | ) | 76 | |||||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | 367,459 | $ | (304,287 | ) | $ | (9,888 | ) | $ | 314,175 | $ | 367,459 | |||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | 367,479 | $ | (304,287 | ) | $ | (9,888 | ) | $ | 314,175 | $ | 367,479 |
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 and amortization expense as reflected below) | (326 | ) | 389,804 | 9,007 | — | 398,485 | |||||||||||||
Depreciation and amortization expense | — | 55,076 | 1,897 | — | 56,973 | ||||||||||||||
Cost of sales | 4,703,248 | 477,168 | 499,916 | (562,041 | ) | 5,118,291 | |||||||||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) | 28,827 | 6,286 | (209 | ) | — | 34,904 | |||||||||||||
Depreciation and amortization expense | 6,020 | — | — | — | 6,020 | ||||||||||||||
Equity income in investee | — | — | (3,820 | ) | — | (3,820 | ) | ||||||||||||
Loss on sale of assets | — | 29 | — | — | 29 | ||||||||||||||
Total cost and expenses | 4,738,095 | 483,483 | 495,887 | (562,041 | ) | 5,155,424 | |||||||||||||
Income (loss) from operations | 190,369 | (348,917 | ) | 16,375 | — | (142,173 | ) | ||||||||||||
Other income (expense): | |||||||||||||||||||
Equity in (loss) earnings 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 | ) | ||||||||||
Other non-service components of net periodic benefit cost | (16 | ) | (85 | ) | — | — | (101 | ) | |||||||||||
Income (loss) before income taxes | (205,377 | ) | (346,936 | ) | 16,106 | 336,729 | (199,478 | ) | |||||||||||
Income tax expense | — | — | 5,898 | — | 5,898 | ||||||||||||||
Net income (loss) | (205,377 | ) | (346,936 | ) | 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 | $ | (205,644 | ) | $ | (347,203 | ) | $ | 10,208 | $ | 336,996 | $ | (205,643 | ) | ||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | (205,314 | ) | $ | (347,203 | ) | $ | 10,208 | $ | 336,996 | $ | (205,313 | ) |
Six Months Ended June 30, 2018 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
Revenues | $ | 13,113,901 | $ | 1,053,783 | $ | 1,589,206 | $ | (2,516,819 | ) | $ | 13,240,071 | ||||||||
Cost and expenses: | |||||||||||||||||||
Cost of products and other | 11,866,752 | 761,445 | 1,590,381 | (2,516,819 | ) | 11,701,759 | |||||||||||||
Operating expenses (excluding depreciation and amortization expense as reflected below) | 31 | 799,783 | 14,384 | — | 814,198 | ||||||||||||||
Depreciation and amortization expense | — | 155,764 | 3,843 | — | 159,607 | ||||||||||||||
Cost of sales | 11,866,783 | 1,716,992 | 1,608,608 | (2,516,819 | ) | 12,675,564 | |||||||||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) | 94,863 | 12,984 | 2,179 | — | 110,026 | ||||||||||||||
Depreciation and amortization expense | 5,277 | — | — | — | 5,277 | ||||||||||||||
Equity income in investee | — | — | (8,385 | ) | — | (8,385 | ) | ||||||||||||
Loss on sale of assets | — | 673 | — | — | 673 | ||||||||||||||
Total cost and expenses | 11,966,923 | 1,730,649 | 1,602,402 | (2,516,819 | ) | 12,783,155 | |||||||||||||
Income (loss) from operations | 1,146,978 | (676,866 | ) | (13,196 | ) | — | 456,916 | ||||||||||||
Other income (expense): | |||||||||||||||||||
Equity in loss of subsidiaries | (681,957 | ) | (9,049 | ) | — | 691,006 | — | ||||||||||||
Change in fair value of catalyst leases | — | 4,153 | — | — | 4,153 | ||||||||||||||
Interest expense, net | (64,894 | ) | (932 | ) | (540 | ) | — | (66,366 | ) | ||||||||||
Other non-service components of net periodic benefit cost | (185 | ) | 737 | 3 | — | 555 | |||||||||||||
Income (loss) before income taxes | 399,942 | (681,957 | ) | (13,733 | ) | 691,006 | 395,258 | ||||||||||||
Income tax benefit | — | — | (4,684 | ) | — | (4,684 | ) | ||||||||||||
Net income (loss) | 399,942 | (681,957 | ) | (9,049 | ) | 691,006 | 399,942 | ||||||||||||
Less: net income attributable to noncontrolling interests | 8 | 8 | — | (8 | ) | 8 | |||||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | 399,934 | $ | (681,965 | ) | $ | (9,049 | ) | $ | 691,014 | $ | 399,934 | |||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | 400,208 | $ | (681,965 | ) | $ | (9,049 | ) | $ | 691,014 | $ | 400,208 |
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 and amortization expense as reflected below) | (331 | ) | 819,249 | 16,335 | — | 835,253 | |||||||||||||
Depreciation and amortization expense | — | 107,123 | 3,778 | — | 110,901 | ||||||||||||||
Cost of sales | 9,063,863 | 1,456,434 | 1,033,740 | (1,693,296 | ) | 9,860,741 | |||||||||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) | 62,506 | 13,451 | (590 | ) | — | 75,367 | |||||||||||||
Depreciation and amortization expense | 7,782 | — | — | — | 7,782 | ||||||||||||||
Equity income in investee | — | — | (7,419 | ) | — | (7,419 | ) | ||||||||||||
Loss on sale of assets | — | 912 | — | — | 912 | ||||||||||||||
Total cost and expenses | 9,134,151 | 1,470,797 | 1,025,731 | (1,693,296 | ) | 9,937,383 | |||||||||||||
Income (loss) from operations | 520,092 | (710,462 | ) | 16,436 | — | (173,934 | ) | ||||||||||||
Other income (expense): | |||||||||||||||||||
Equity in (loss) earnings 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 | ) | ||||||||||
Other non-service components of net periodic benefit cost | (32 | ) | (170 | ) | — | — | (202 | ) | |||||||||||
Income (loss) before income taxes | (270,917 | ) | (709,619 | ) | 15,987 | 699,965 | (264,584 | ) | |||||||||||
Income tax expense | — | — | 6,332 | — | 6,332 | ||||||||||||||
Net income (loss) | (270,917 | ) | (709,619 | ) | 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 | $ | (271,297 | ) | $ | (709,999 | ) | $ | 9,655 | $ | 700,345 | $ | (271,296 | ) | ||||||
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ | (270,646 | ) | $ | (709,999 | ) | $ | 9,655 | $ | 700,345 | $ | (270,645 | ) |
Six Months Ended June 30, 2018 | |||||||||||||||||||
Issuer | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Combining and Consolidating Adjustments | Total | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net income (loss) | $ | 399,942 | $ | (681,957 | ) | $ | (9,049 | ) | $ | 691,006 | $ | 399,942 | |||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operations: | |||||||||||||||||||
Depreciation and amortization | 8,417 | 155,805 | 3,888 | — | 168,110 | ||||||||||||||
Stock-based compensation | — | 9,520 | — | — | 9,520 | ||||||||||||||
Change in fair value of catalyst leases | — | (4,153 | ) | — | — | (4,153 | ) | ||||||||||||
Deferred income taxes | — | — | (4,653 | ) | — | (4,653 | ) | ||||||||||||
Non-cash change in inventory repurchase obligations | 2,538 | — | — | — | 2,538 | ||||||||||||||
Non-cash lower of cost or market inventory adjustment | (245,655 | ) | — | — | — | (245,655 | ) | ||||||||||||
Pension and other post-retirement benefit costs | 3,482 | 20,209 | — | — | 23,691 | ||||||||||||||
Income from equity method investee | — | — | (8,385 | ) | — | (8,385 | ) | ||||||||||||
Distributions from equity method investee | — | — | 8,385 | — | 8,385 | ||||||||||||||
Loss on sale of assets | — | 673 | — | — | 673 | ||||||||||||||
Equity in earnings of subsidiaries | 681,957 | 9,049 | — | (691,006 | ) | — | |||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Accounts receivable | (89,080 | ) | (1,466 | ) | 10,101 | — | (80,445 | ) | |||||||||||
Due to/from affiliates | (866,193 | ) | 849,520 | 8,936 | — | (7,737 | ) | ||||||||||||
Inventories | (125,750 | ) | — | 44,925 | — | (80,825 | ) | ||||||||||||
Prepaid and other current assets | 1,572 | (3,750 | ) | 417 | — | (1,761 | ) | ||||||||||||
Accounts payable | 94,244 | (24,915 | ) | (5,076 | ) | — | 64,253 | ||||||||||||
Accrued expenses | 61,061 | (23,450 | ) | (36,701 | ) | — | 910 | ||||||||||||
Deferred revenue | (2,375 | ) | (1,452 | ) | (11 | ) | — | (3,838 | ) | ||||||||||
Other assets and liabilities | 8,585 | (7,018 | ) | (11,592 | ) | — | (10,025 | ) | |||||||||||
Net cash (used in) provided by operations | (67,255 | ) | 296,615 | 1,185 | — | 230,545 | |||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Expenditures for property, plant and equipment | (2,575 | ) | (106,633 | ) | (961 | ) | — | (110,169 | ) | ||||||||||
Expenditures for deferred turnaround costs | — | (179,194 | ) | — | — | (179,194 | ) | ||||||||||||
Expenditures for other assets | — | (12,357 | ) | — | — | (12,357 | ) | ||||||||||||
Equity method investment - return of capital | — | — | 2,865 | — | 2,865 | ||||||||||||||
Due to/from affiliates | (13 | ) | — | — | 13 | — | |||||||||||||
Net cash (used in) provided by investing activities | (2,588 | ) | (298,184 | ) | 1,904 | 13 | (298,855 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Contributions from PBF LLC | 22,000 | — | — | — | 22,000 | ||||||||||||||
Distribution to members | (26,567 | ) | — | — | — | (26,567 | ) | ||||||||||||
Repayments of PBF Rail Term Loan | — | — | (3,385 | ) | — | (3,385 | ) | ||||||||||||
Repayment of note payable | — | (2,421 | ) | — | — | (2,421 | ) | ||||||||||||
Catalyst lease settlements | — | (9,466 | ) | — | — | (9,466 | ) | ||||||||||||
Due to/from affiliates | — | 13 | — | (13 | ) | — | |||||||||||||
Proceeds from insurance premium financing | 1,168 | 16,230 | — | — | 17,398 | ||||||||||||||
Deferred financing cost and other | (12,692 | ) | — | — | — | (12,692 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (16,091 | ) | 4,356 | (3,385 | ) | (13 | ) | (15,133 | ) | ||||||||||
Net (decrease) increase in cash and cash equivalents | (85,934 | ) | 2,787 | (296 | ) | — | (83,443 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 486,568 | 13,456 | 26,136 | — | 526,160 | ||||||||||||||
Cash and cash equivalents, end of period | $ | 400,634 | $ | 16,243 | $ | 25,840 | $ | — | $ | 442,717 |
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) | $ | (270,917 | ) | $ | (709,619 | ) | $ | 9,655 | $ | 699,965 | $ | (270,916 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by operations: | |||||||||||||||||||
Depreciation and amortization | 11,597 | 107,429 | 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 change in inventory repurchase obligations | (3,107 | ) | — | — | — | (3,107 | ) | ||||||||||||
Non-cash lower of cost or market inventory adjustment | 167,134 | — | — | — | 167,134 | ||||||||||||||
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 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 | ||||||||||||||
Distributions to members | (5,252 | ) | — | — | — | (5,252 | ) | ||||||||||||
Proceeds from 2025 Senior Notes | 725,000 | — | — | — | 725,000 | ||||||||||||||
Cash paid to extinguish 2020 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 |
Refinery | Region | Nelson Complexity Index | Throughput Capacity (in barrels per day) | PADD | Crude Processed (1) | Source (1) | |||
Delaware City | East Coast | 11.3 | 190,000 | 1 | light sweet through heavy sour | water, rail | |||
Paulsboro | East Coast | 13.2 | 180,000 | 1 | light sweet through heavy sour | water | |||
Toledo | Mid-Continent | 9.2 | 170,000 | 2 | light sweet | pipeline, truck, rail | |||
Chalmette | Gulf Coast | 12.7 | 189,000 | 3 | light sweet through heavy sour | water, pipeline | |||
Torrance | West Coast | 14.9 | 155,000 | 5 | medium and heavy | pipeline, water, truck |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Reimbursements under affiliate agreements: | |||||||||||||||
Services Agreement | $ | 1,674 | $ | 1,661 | $ | 3,348 | $ | 3,279 | |||||||
Omnibus Agreement | 1,737 | 1,630 | 3,437 | 3,284 | |||||||||||
Total expenses under affiliate agreements | 63,785 | 58,355 | 124,649 | 114,557 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenues | $ | 7,440,470 | $ | 5,013,251 | $ | 13,240,071 | $ | 9,763,449 | |||||||
Cost and expenses: | |||||||||||||||
Cost of products and other | 6,512,153 | 4,662,833 | 11,701,759 | 8,914,587 | |||||||||||
Operating expenses (excluding depreciation and amortization expense as reflected below) | 402,751 | 398,485 | 814,198 | 835,253 | |||||||||||
Depreciation and amortization expense | 82,829 | 56,973 | 159,607 | 110,901 | |||||||||||
Cost of sales | 6,997,733 | 5,118,291 | 12,675,564 | 9,860,741 | |||||||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) | 51,756 | 34,904 | 110,026 | 75,367 | |||||||||||
Depreciation and amortization expense | 2,563 | 6,020 | 5,277 | 7,782 | |||||||||||
Equity income in investee | (4,363 | ) | (3,820 | ) | (8,385 | ) | (7,419 | ) | |||||||
Loss on sale of assets | 594 | 29 | 673 | 912 | |||||||||||
Total cost and expenses | 7,048,283 | 5,155,424 | 12,783,155 | 9,937,383 | |||||||||||
Income (loss) from operations | 392,187 | (142,173 | ) | 456,916 | (173,934 | ) | |||||||||
Other income (expense): | |||||||||||||||
Change in fair value of catalyst leases | 4,140 | 1,104 | 4,153 | (1,484 | ) | ||||||||||
Debt extinguishment costs | — | (25,451 | ) | — | (25,451 | ) | |||||||||
Interest expense, net | (33,052 | ) | (32,857 | ) | (66,366 | ) | (63,513 | ) | |||||||
Other non-service components of net periodic benefit cost | 277 | (101 | ) | 555 | (202 | ) | |||||||||
Income (loss) before income taxes | 363,552 | (199,478 | ) | 395,258 | (264,584 | ) | |||||||||
Income tax (benefit) expense | (3,983 | ) | 5,898 | (4,684 | ) | 6,332 | |||||||||
Net income (loss) | 367,535 | (205,376 | ) | 399,942 | (270,916 | ) | |||||||||
Less: net income attributable to noncontrolling interests | 76 | 267 | 8 | 380 | |||||||||||
Net income (loss) attributable to PBF Holding Company LLC | $ | 367,459 | $ | (205,643 | ) | $ | 399,934 | $ | (271,296 | ) | |||||
Consolidated gross margin | $ | 442,737 | $ | (105,040 | ) | $ | 564,507 | $ | (97,292 | ) | |||||
Gross refining margin (1) | $ | 928,317 | $ | 350,418 | $ | 1,538,312 | $ | 848,862 |
Operating Highlights | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Key Operating Information | |||||||||||||||
Production (bpd in thousands) | 866.1 | 764.2 | 831.2 | 748.8 | |||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 866.6 | 769.2 | 833.3 | 753.7 | |||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 78.8 | 70.0 | 150.8 | 136.4 | |||||||||||
Consolidated gross margin per barrel of throughput | $ | 5.61 | $ | (1.49 | ) | $ | 3.75 | $ | (0.71 | ) | |||||
Gross refining margin, excluding special items, per barrel of throughput (1) | $ | 9.77 | $ | 7.17 | $ | 8.57 | $ | 7.45 | |||||||
Refinery operating expense, per barrel of throughput | $ | 5.11 | $ | 5.69 | $ | 5.40 | $ | 6.12 | |||||||
Crude and feedstocks (% of total throughput) (2) | |||||||||||||||
Heavy | 38 | % | 30 | % | 37 | % | 35 | % | |||||||
Medium | 28 | % | 31 | % | 31 | % | 30 | % | |||||||
Light | 21 | % | 23 | % | 20 | % | 20 | % | |||||||
Other feedstocks and blends | 13 | % | 16 | % | 12 | % | 15 | % | |||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | |||||||
Yield (% of total throughput) | |||||||||||||||
Gasoline and gasoline blendstocks | 48 | % | 50 | % | 49 | % | 51 | % | |||||||
Distillates and distillate blendstocks | 32 | % | 30 | % | 32 | % | 30 | % | |||||||
Lubes | 1 | % | 1 | % | 1 | % | 1 | % | |||||||
Chemicals | 2 | % | 2 | % | 2 | % | 2 | % | |||||||
Other | 17 | % | 16 | % | 16 | % | 16 | % | |||||||
Total yield | 100 | % | 99 | % | 100 | % | 100 | % |
(1) | See Non-GAAP Financial Measures. |
(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, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(dollars per barrel, except as noted) | |||||||||||||||
Dated Brent Crude | $ | 74.42 | $ | 49.69 | $ | 70.75 | $ | 51.61 | |||||||
West Texas Intermediate (WTI) crude oil | $ | 68.02 | $ | 48.11 | $ | 65.52 | $ | 49.89 | |||||||
Light Louisiana Sweet (LLS) crude oil | $ | 73.14 | $ | 50.17 | $ | 69.58 | $ | 51.77 | |||||||
Alaska North Slope (ANS) crude oil | $ | 73.93 | $ | 50.61 | $ | 70.64 | $ | 52.20 | |||||||
Crack Spreads | |||||||||||||||
Dated Brent (NYH) 2-1-1 | $ | 14.96 | $ | 14.81 | $ | 13.90 | $ | 13.21 | |||||||
WTI (Chicago) 4-3-1 | $ | 17.56 | $ | 14.09 | $ | 14.74 | $ | 12.65 | |||||||
LLS (Gulf Coast) 2-1-1 | $ | 13.52 | $ | 12.56 | $ | 13.19 | $ | 12.30 | |||||||
ANS (West Coast) 4-3-1 | $ | 18.70 | $ | 19.16 | $ | 17.59 | $ | 17.85 | |||||||
Crude Oil Differentials | |||||||||||||||
Dated Brent (foreign) less WTI | $ | 6.40 | $ | 1.58 | $ | 5.23 | $ | 1.73 | |||||||
Dated Brent less Maya (heavy, sour) | $ | 12.40 | $ | 8.00 | $ | 10.78 | $ | 7.34 | |||||||
Dated Brent less WTS (sour) | $ | 14.78 | $ | 2.65 | $ | 10.20 | $ | 2.98 | |||||||
Dated Brent less ASCI (sour) | $ | 5.09 | $ | 2.85 | $ | 4.84 | $ | 3.46 | |||||||
WTI less WCS (heavy, sour) | $ | 18.26 | $ | 9.56 | $ | 22.17 | $ | 11.23 | |||||||
WTI less Bakken (light, sweet) | $ | 0.39 | $ | 0.30 | $ | 0.70 | $ | 0.61 | |||||||
WTI less Syncrude (light, sweet) | $ | 2.98 | $ | (1.35 | ) | $ | 1.69 | $ | (1.81 | ) | |||||
WTI less LLS (light, sweet) | $ | (5.12 | ) | $ | (2.06 | ) | $ | (4.06 | ) | $ | (1.88 | ) | |||
WTI less ANS (light, sweet) | $ | (5.91 | ) | $ | (2.50 | ) | $ | (5.12 | ) | $ | (2.31 | ) | |||
Natural gas (dollars per MMBTU) | $ | 2.85 | $ | 3.14 | $ | 2.82 | $ | 3.10 |
Three Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
$ | per barrel of throughput | $ | per barrel of throughput | ||||||||||||
Calculation of consolidated gross margin: | |||||||||||||||
Revenues | $ | 7,440,470 | $ | 94.35 | $ | 5,013,251 | $ | 71.62 | |||||||
Less: Cost of Sales | 6,997,733 | 88.74 | 5,118,291 | 73.11 | |||||||||||
Consolidated gross margin | $ | 442,737 | $ | 5.61 | $ | (105,040 | ) | $ | (1.49 | ) | |||||
Reconciliation of consolidated gross margin to gross refining margin: | |||||||||||||||
Consolidated gross margin | $ | 442,737 | $ | 5.61 | $ | (105,040 | ) | $ | (1.49 | ) | |||||
Add: Refinery operating expenses | 402,751 | 5.11 | 398,485 | 5.69 | |||||||||||
Add: Refinery depreciation expense | 82,829 | 1.05 | 56,973 | 0.81 | |||||||||||
Gross refining margin | $ | 928,317 | $ | 11.77 | $ | 350,418 | $ | 5.01 | |||||||
Special items: | |||||||||||||||
Add: Non-cash LCM inventory adjustment (1) | (158,002 | ) | (2.00 | ) | 151,095 | 2.16 | |||||||||
Gross refining margin excluding special items | $ | 770,315 | $ | 9.77 | $ | 501,513 | $ | 7.17 | |||||||
Six Months Ended June 30, | |||||||||||||||
2018 | 2017 | ||||||||||||||
$ | per barrel of throughput | $ | per barrel of throughput | ||||||||||||
Calculation of consolidated gross margin: | |||||||||||||||
Revenues | $ | 13,240,071 | $ | 87.79 | $ | 9,763,449 | $ | 71.57 | |||||||
Less: Cost of Sales | 12,675,564 | 84.04 | 9,860,741 | 72.28 | |||||||||||
Consolidated gross margin | $ | 564,507 | $ | 3.75 | $ | (97,292 | ) | $ | (0.71 | ) | |||||
Reconciliation of consolidated gross margin to gross refining margin: | |||||||||||||||
Consolidated gross margin | $ | 564,507 | $ | 3.75 | $ | (97,292 | ) | $ | (0.71 | ) | |||||
Add: Refinery operating expense | 814,198 | 5.40 | 835,253 | 6.12 | |||||||||||
Add: Refinery depreciation expense | 159,607 | 1.05 | 110,901 | 0.81 | |||||||||||
Gross refining margin | $ | 1,538,312 | $ | 10.20 | $ | 848,862 | $ | 6.22 | |||||||
Special items: | |||||||||||||||
Add: Non-cash LCM inventory adjustment (1) | (245,655 | ) | (1.63 | ) | 167,134 | 1.23 | |||||||||
Gross refining margin excluding special items | $ | 1,292,657 | $ | 8.57 | $ | 1,015,996 | $ | 7.45 | |||||||
• | 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, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
Reconciliation of net income (loss) to EBITDA and EBITDA excluding special items: | |||||||||||||||||
Net income (loss) | $ | 367,535 | $ | (205,376 | ) | $ | 399,942 | $ | (270,916 | ) | |||||||
Add: Depreciation and amortization expense | 85,392 | 62,993 | 164,884 | 118,683 | |||||||||||||
Add: Interest expense, net | 33,052 | 32,857 | 66,366 | 63,513 | |||||||||||||
Add: Income tax (benefit) expense | (3,983 | ) | 5,898 | (4,684 | ) | 6,332 | |||||||||||
EBITDA | $ | 481,996 | $ | (103,628 | ) | $ | 626,508 | $ | (82,388 | ) | |||||||
Special Items: | |||||||||||||||||
Add: Non-cash LCM inventory adjustment (1) | (158,002 | ) | 151,095 | (245,655 | ) | 167,134 | |||||||||||
Add: Debt extinguishment costs (1) | — | 25,451 | — | 25,451 | |||||||||||||
EBITDA excluding special items | $ | 323,994 | $ | 72,918 | $ | 380,853 | $ | 110,197 | |||||||||
Reconciliation of EBITDA to Adjusted EBITDA: | |||||||||||||||||
EBITDA | $ | 481,996 | $ | (103,628 | ) | $ | 626,508 | $ | (82,388 | ) | |||||||
Add: Stock-based compensation | 5,282 | 4,789 | 9,520 | 10,134 | |||||||||||||
Add: Non-cash change in fair value of catalyst leases | (4,140 | ) | (1,104 | ) | (4,153 | ) | 1,484 | ||||||||||
Add: Non-cash LCM inventory adjustment (1) | (158,002 | ) | 151,095 | (245,655 | ) | 167,134 | |||||||||||
Add: Debt extinguishment costs (1) | — | 25,451 | — | 25,451 | |||||||||||||
Adjusted EBITDA | $ | 325,136 | $ | 76,603 | $ | 386,220 | $ | 121,815 | |||||||||
(1) | Special items: |
2018 | 2017 | ||||||
January 1, | $ | 300,456 | $ | 595,988 | |||
March 31, | 212,803 | 612,027 | |||||
June 30, | 54,801 | 763,122 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net LCM inventory adjustment benefit (charge) in both income (loss) from operations and net income (loss) | $ | 158,002 | $ | (151,095 | ) | $ | 245,655 | $ | (167,134 | ) |
Exhibit Number | Description | |
Senior Secured Revolving Credit Agreement dated as of May 2, 2018 (incorporated by reference to Exhibit 10.1 filed with PBF Energy Inc.’s Current Report on Form 8-K dated May 7, 2018 (File No. 001-35764)) | ||
PBF Energy Inc. Amended and Restated 2017 Equity Incentive Plan (incorporated by reference to Appendix A to PBF Energy Inc.’s Definitive Proxy Statement on Schedule 14A filed on April 13, 2018 (File No. 001-35764)) | ||
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. | ||
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. |
** | Indicates management compensatory plan or arrangement. |
(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 7, 2018 | By: | /s/ Erik Young | |
Erik Young Senior Vice President, Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) | ||||
PBF Finance Corporation | ||||
Date | August 7, 2018 | By: | /s/ Erik Young | |
Erik Young Senior Vice President, Chief Financial Officer (Duly Authorized Officer and Principal Financial Officer) |
/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 7, 2018 |
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 7, 2018 |
Document and Entity Information Document - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 31, 2018 |
|
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, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2018 | |
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 Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 367,535 | $ (205,376) | $ 399,942 | $ (270,916) |
Other comprehensive income: | ||||
Unrealized (loss) gain on available for sale securities | (235) | 43 | (235) | 77 |
Net gain on pension and other post-retirement benefits | 255 | 287 | 509 | 574 |
Total other comprehensive income | 20 | 330 | 274 | 651 |
Comprehensive income (loss) | 367,555 | (205,046) | 400,216 | (270,265) |
Less: comprehensive income attributable to noncontrolling interests | 76 | 267 | 8 | 380 |
Comprehensive income (loss) attributable to PBF Holding Company LLC | $ 367,479 | $ (205,313) | $ 400,208 | $ (270,645) |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION |
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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, and PBF Finance LP (“PBF Finance”), a wholly-owned subsidiary of PBF Holding, together with the Company’s 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 99.0% of the outstanding economic interest in, PBF LLC as of June 30, 2018. 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”. PBF Logistics GP LLC (“PBF GP”) serves as the general partner of PBF Logistics LP (“PBFX”). PBF GP is wholly-owned by PBF LLC. In a series of transactions, PBF Holding distributed certain assets to PBF LLC, which in turn contributed those assets to PBFX (as described in “Note 7 - Related Party Transactions”). Substantially all of the Company’s operations are in the United States. As of June 30, 2018, 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, 2017 of PBF Holding Company LLC and PBF Finance Corporation. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the full year. Change in Presentation In 2017, the Company determined that it would revise the presentation of certain line items on its consolidated statements of operations to enhance its disclosure under the requirements of Rule 5-03 of Regulation S-X. The revised presentation is comprised of the inclusion of a subtotal within costs and expenses referred to as “Cost of sales” and the reclassification of total depreciation and amortization expense between such amounts attributable to cost of sales and other operating costs and expenses. The amount of depreciation and amortization expense that is presented separately within the “Cost of Sales” subtotal represents depreciation and amortization of refining and logistics assets that are integral to the refinery production process. The historical comparative information has been revised to conform to the current presentation. This revised presentation does not have an effect on the Company’s historical consolidated income from operations or net income, nor does it have any impact on its consolidated balance sheets, statements of comprehensive income or statements of cash flows. Presented below is a summary of the effects of this revised presentation on the Company’s historical statements of operations for the three and six months ended June 30, 2017:
(1) Amounts disclosed include the retrospective adjustments recorded as part of the adoption of ASU 2017-07, as defined below under “Recently Adopted Accounting Guidance”. Recently Adopted Accounting Guidance In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (Topic 606) “Revenue from Contracts with Customers.” (“ASC 606”). ASC 606 supersedes the revenue recognition requirements in Accounting Standards Codification 605 “Revenue Recognition” (“ASC 605”), and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective transition method. See “Note 2 - Revenues” for further details. 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 periodic 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 non-service 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. 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 adopted ASU 2017-07 effective January 1, 2018 and applied the new guidance retrospectively in the Condensed Consolidated Statement of Operations. For the three and six months ended June 30, 2018, the Company recorded income of $277 and $555, respectively. For the three and six months ended June 30, 2017, the Company recorded expense of $101 and $202, respectively. These income and expense amounts have been recorded within Other income (expense) for the non-service components of net periodic benefit cost that were historically recorded within Operating expenses and General and administrative expenses. 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’s adoption of this guidance did not materially impact its condensed consolidated financial statements. Recent Accounting Pronouncements 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. Additional ASUs have been issued subsequent to ASU 2016-02 to provide additional clarification and implementation guidance for leases related to ASU 2016-02 related to, among other things, the application of certain practical expedients, the rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments (collectively, the Company refers to ASU 2016-02 and these additional ASUs as the “Updated Lease Guidance”). The Updated Lease 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. The Updated Lease Guidance is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. While early adoption is permitted, the Company will not early adopt the Updated Lease Guidance. The Company has established a working group to study and lead the implementation of the Updated Lease Guidance and has instituted a task plan designed to meet the requirements and implementation deadline. The Company has also evaluated and purchased a lease software system, completed software design and configuration of the system, and begun testing the implementation of the selected system. The working group continues to evaluate the impact of the Updated Lease Guidance on the Company’s consolidated financial statements and related disclosures and the impact on its business processes and controls. While the assessment of this standard is ongoing, the Company has identified that the most significant impacts of the Updated Lease 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 recognition of the interest expense component of financing leases. The new standard will also require additional disclosures for financing and operating leases. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The amendments in ASU 2017-12 more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The amendments in ASU 2017-12 address specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. Thus, the amendments in ASU 2017-12 will enable an entity to better portray the economic results of hedging activities for certain fair value and cash flow hedges and will avoid mismatches in earnings by allowing for greater precision when measuring changes in fair value of the hedged item for certain fair value hedges. Additionally, by aligning the timing of recognition of hedge results with the earnings effect of the hedged item for cash flow and net investment hedges, and by including the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is presented, the results of an entity’s hedging program and the cost of executing that program will be more visible to users of financial statements. The guidance in ASU 2017-12 concerning amendments to cash flow and net investment hedge relationships that exist on the date of adoption should be applied using a modified retrospective approach (i.e., with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date). The guidance in ASU 2017-12 also provides transition relief to make it easier for entities to apply certain amendments to existing hedges (including fair value hedges) where the hedge documentation needs to be modified. The presentation and disclosure requirements of ASU 2017-12 should be applied prospectively. The amendments in this ASU are effective for annual periods beginning after December 15, 2018, 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 June 2018, the FASB issued ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718): Targeted Improvements to Non-employee Share-Based Payment Accounting” (“ASU 2018-07”). ASU 2018-07 expands the scope of Topic 718, Compensation-Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Under ASU 2018-07, the existing employee guidance for share-based payments will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. ASU 2018-07 also specifies the following: (i) that equity-classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; (ii) for performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; (iii) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. Finally, ASU 2018-07 also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. Upon adoption, an entity should only re-measure liability-classified awards that have not been settled by the date of adoption and equity-classified awards for which a measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Upon transition, the entity is required to measure these nonemployee awards at fair value as of the adoption date. The entity must not re-measure assets that are completed. Disclosures required at transition include the nature of and reason for the change in accounting principle and, if applicable, quantitative information about the cumulative effect of the change on retained earnings or other components of equity. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
REVENUES (Notes) |
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Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] | 2. REVENUES Adoption of Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” Prior to January 1, 2018, the Company recognized revenue from customers when all of the following criteria were met: (i) persuasive evidence of an exchange arrangement existed, (ii) delivery had occurred or services had been rendered, (iii) the buyer’s price was fixed or determinable and (iv) collectability was reasonably assured. Amounts billed in advance of the period in which the service was rendered or product delivered were recorded as deferred revenue. Effective January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. As a result, the Company has changed its accounting policy for the recognition of revenue from contracts with customers as detailed below. The Company adopted ASC 606 using the modified retrospective method, which has been applied for the three and six months ended June 30, 2018. The Company has applied ASC 606 only to those contracts that were not complete as of January 1, 2018. As such, the financial information for prior periods has not been adjusted and continues to be reported under ASC 605.The Company did not record a cumulative effect adjustment upon initially applying ASC 606 as there was not a significant impact upon adoption; however, the details of significant qualitative and quantitative disclosure changes upon implementing ASC 606 are discussed below. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following table provides information relating to the Company’s revenues from external customers for each product or group of similar products for the periods presented:
The Company’s revenues are generated from the sale of refined petroleum products. These revenues are largely based on the current spot (market) prices of the products sold, which represent consideration specifically allocable to the products being sold on a given day, and the Company recognizes those revenues upon delivery and transfer of title to the products to our customers. The time at which delivery and transfer of title occurs is the point when the Company’s control of the products is transferred to the Company’s customers and when their performance obligation to their customers is fulfilled. Delivery and transfer in title are specifically agreed to between the Company and customers within the contracts. The Company also has contracts which contain fixed pricing, tiered pricing, minimum volume features with makeup periods, or other factors that have not materially been affected by ASC 606. Deferred Revenues The Company records deferred revenues when cash payments are received or are due in advance of our performance, including amounts which are refundable. Deferred revenue was $3,657 and $7,495 as of June 30, 2018 and December 31, 2017, respectively. The decrease in the deferred revenue balance for the six months ended June 30, 2018 is primarily driven by the timing and extent of cash payments received or due in advance of satisfying the Company’s performance obligations for the comparative periods. Our payment terms vary by the type and location of our customer and the products offered. The period between invoicing and when payment is due is not significant (i.e. generally within two months). For certain products or services and customer types, we require payment before the products or services are delivered to the customer. Significant Judgment and Practical Expedients For performance obligations related to sales of products, the Company has determined that customers are able to direct the use of, and obtain substantially all of the benefits from, the products at the point in time that the products are delivered. The Company has determined that the transfer of control upon delivery to the customer’s requested destination accurately depicts the transfer of goods. Upon the delivery of the products and transfer of control, the Company generally has the present right to payment and the customers bear the risks and rewards of ownership of the products. We have elected the practical expedient to not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed. |
INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consisted of the following:
Inventory under inventory intermediation agreements 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, the “Inventory Intermediation Agreements”) with J. Aron & Company, a subsidiary of The Goldman Sachs Group, Inc. (“J. Aron”). During the three months ended June 30, 2018, 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 $158,002 reflecting the net change in the lower of cost or market inventory reserve from $212,803 at March 31, 2018 to $54,801 at June 30, 2018. During the six months ended June 30, 2018, 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 $245,655 reflecting the net change in the lower of cost or market inventory reserve from $300,456 at December 31, 2017 to $54,801 at June 30, 2018. During the three months ended June 30, 2017, the Company recorded an adjustment to value its inventories to the lower of cost or market which decreased 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. |
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 Inventory Intermediation Agreements with J. Aron. As of June 30, 2018 and December 31, 2017, a liability is recognized for the Inventory Intermediation Agreements and is recorded at market price for the J. Aron owned inventory held in the Company’s storage tanks under the 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 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, including regulations in the state of California pursuant to Assembly Bill 32 (“AB32”), to address environmental compliance and greenhouse gas and other emissions. These requirements include incremental costs to operate and maintain our facilities as well as to implement and manage new emission controls and programs. Renewable energy credit and emissions obligations fluctuate with the volume of applicable product sales and timing of credit purchases. |
DEBT (Notes) |
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Debt Instrument [Line Items] | |
Debt Disclosure [Text Block] | 5. DEBT 2018 Revolving Credit Agreement On May 2, 2018, PBF Holding and certain of its wholly-owned subsidiaries, as borrowers or subsidiary guarantors, replaced its existing asset-based revolving credit agreement dated as of August 15, 2014 (the “August 2014 Revolving Credit Agreement”) with a new asset-based revolving credit agreement (the “2018 Revolving Credit Agreement"). The 2018 Revolving Credit Agreement has a maximum commitment of $3,400,000, a maturity date of May 2023 and redefines certain components of the Borrowing Base (as defined in the credit agreement) to make more funding available for working capital and other general corporate purposes. Borrowings under the 2018 Revolving Credit Agreement bear interest at the Alternative Base Rate plus the Applicable Margin or at the Adjusted LIBOR Rate plus the Applicable Margin (all as defined in the credit agreement). The Applicable Margin ranges from 0.25% to 1.00% for Alternative Base Rate Loans and from 1.25% to 2.00% for Adjusted LIBOR Rate Loans, in each case depending on the Company’s corporate credit rating. In addition, an accordion feature allows for commitments of up to $3,500,000. The LC Participation Fee ranges from 1.00% to 1.75% depending on the Company’s corporate credit rating and the Fronting Fee is capped at 0.25%. The 2018 Revolving Credit Agreement contains representations, warranties and covenants by PBF Holding and the other borrowers, as well as customary events of default and indemnification obligations. At June 30, 2018 and December 31, 2017, there was $350,000 and $350,000, respectively, outstanding under the revolving credit agreements. |
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 expense 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.”), which are treated as C-Corporations for income tax purposes. The income tax (benefit) expense in the PBF Holding condensed consolidated financial statements of operations consists of the following:
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RELATED PARTY TRANSACTIONS |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 interstate natural gas pipeline which serves PBF Holding’s Paulsboro refinery (the “Paulsboro Natural Gas Pipeline”). In connection with the PNGPC Contribution Agreement, PBFX constructed a new pipeline to replace the existing pipeline, which commenced services 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 Paulsboro Natural Gas Pipeline and (iii) an assignment and assumption agreement with respect to certain outstanding litigation involving PNGPC and the existing pipeline. Following the completion of the Paulsboro Natural Gas Pipeline in the fourth quarter of 2017, PBF Holding received full payment of the affiliate promissory note due from PBFX. Commercial Agreements PBFX currently derives a substantial majority of its revenue from long-term, fee-based commercial agreements with PBF Holding relating to assets associated with the Contribution Agreements described above, the majority of which include minimum volume commitments (“MVCs”) and are supported by contractual fee escalations for inflation adjustments and certain increases in operating costs. Under these agreements, PBFX provides various pipeline, rail and truck terminaling and storage services to PBF Holding and PBF Holding has committed, under certain of these agreements, to provide PBFX with minimum fees based on minimum monthly throughput volumes. 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. See the 2017 Form 10-K for a more complete description of PBF Holding’s commercial agreements with PBFX, including those identified as leases, that were entered into prior to 2018. The following are commercial agreements entered into between PBF Holding and PBFX during 2018:
Other Agreements In addition to the commercial agreements described above, PBF Holding has entered into an omnibus agreement with PBFX, PBF GP and PBF LLC, which has been amended and restated in connection with the closing of certain of the contribution agreements (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. Additionally, PBF Holding and certain of its subsidiaries have entered into an operation and management services and secondment agreement with PBFX (the “Services Agreement”), 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. The Services Agreement will terminate upon the termination of the Omnibus Agreement, provided that PBFX may terminate any service on 30-days’ notice. Summary of Transactions with PBFX A summary of 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 $11,448 recorded as of June 30, 2018 ($10,282 as of December 31, 2017) 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. As of June 30, 2018 and December 31, 2017, 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) 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 thirty 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. At the time the Company acquired Chalmette refinery it was subject to a Consolidated Compliance Order and Notice of Potential Penalty (the “Order”) issued by the Louisiana Department of Environmental Quality (“LDEQ”) covering deviations from 2009 and 2010. Chalmette Refining and LDEQ subsequently entered into a dispute resolution agreement to negotiate the resolution of deviations on or before December 31, 2014. On May 18, 2018 the Order was settled by LDEQ and the Chalmette refinery for an administrative penalty of $741, of which $100 has been paid in cash and the remainder has been or will be spent on beneficial environmental projects. 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 (the “Coastal Zone Board”) held a public hearing and dismissed the appeal, determining that the appellants did not have standing. The appellants filed an appeal of the Coastal Zone Board’s decision with the Delaware Superior Court (the “Superior Court”) on March 30, 2017. On January 19, 2018, the Superior Court rendered an Opinion regarding the decision of the Coastal Zone Board to dismiss the appeal of the Ethanol Permit for the ethanol project. The Judge determined that the record created by the Coastal Zone Board was insufficient for the Superior Court to make a decision, and therefore remanded the case back to the Coastal Zone Board to address the deficiency in the record. Specifically, the Superior Court directed the Coastal Zone Board to address any evidence concerning whether the appellants’ claimed injuries would be affected by the increased quantity of ethanol shipments. During the hearing before the Coastal Zone Board on standing, one of the appellants’ witnesses made a reference to the flammability of ethanol, without any indication of the significance of flammability/ explosivity to specific concerns. Moreover, the appellants did not introduce at hearing any evidence of the relative flammability of ethanol as compared to other materials shipped to and from the refinery. However, the sole dissenting opinion from the Coastal Zone Board focused on the flammability/explosivity issue, alleging that the appellants’ testimony raised the issue as a distinct basis for potential harms. Once the Board responds to the remand, it will go back to the Superior Court to complete its analysis and issue a decision. At the time the Company acquired the Toledo refinery, the EPA had initiated an investigation into the compliance of the refinery with EPA standards governing flaring pursuant to Section 114 of the Clean Air Act. On February 1, 2013, the EPA issued an Amended Notice of Violation, and on September 20, 2013, the EPA issued a Notice of Violation and Finding of Violation to Toledo refinery, alleging certain violations of the Clean Air Act at its Plant 4 and Plant 9 flares since the acquisition of the refinery on March 1, 2011. Toledo refinery and the EPA subsequently entered into tolling agreements pending settlement discussions. Although the resolution has not been finalized, the civil administrative penalty is anticipated to be approximately $645 including supplemental environmental projects. To the extent the administrative penalty exceeds such amount, it is not expected to be material to the Company. In connection with the acquisition of the Torrance refinery and related logistics assets, the Company assumed certain pre-existing environmental liabilities totaling $133,928 as of June 30, 2018 ($136,487 as of December 31, 2017), related to certain environmental remediation obligations to address existing soil and groundwater contamination and monitoring activities 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 and the logistics assets, including specified incidents and/or notices of violations (“NOVs”) issued by regulatory agencies in various years before the Company’s ownership, including the Southern California Air Quality Management District (“SCAQMD”) and the Division of Occupational Safety and Health of the State of California (“Cal/OSHA”). Subsequent to the acquisition, further NOVs were issued by the SCAQMD, Cal/OSHA, the City of Torrance, the City of Torrance Fire Department, and the Los Angeles County Sanitation District related to alleged operational violations, emission discharges and/or flaring incidents at the refinery and the logistics assets both before and after the Company’s acquisition. EPA in November 2016 conducted a Risk Management Plan (“RMP”) inspection following the acquisition related to Torrance operations and issued preliminary findings in March 2017 concerning RMP potential operational violations. EPA and the California Department of Toxic Substances Control (“DTSC”) in December 2016 conducted a Resource Conservation and Recovery Act (“RCRA”) inspection following the acquisition related to Torrance operations and also issued in March 2017 preliminary findings concerning RCRA potential operational violations. In April 2017, EPA referred the RCRA preliminary findings to DTSC for final resolution. On March 1, 2018, the Company received a notice of intent to sue from Environmental Integrity Project, on behalf of Environment California, under RCRA with respect to the alleged violations from EPA’s and DTSC’s December 2016 inspection. On March 2, 2018, DTSC issued an order to correct alleged RCRA violations relating to the accumulation of oil bearing materials in roll off bins during 2016 and 2017. On June 14, 2018, the Torrance refinery and DTSC reached settlement regarding the oil bearing materials in the form of a stipulation and order, wherein the Torrance refinery agreed that it would recycle or properly dispose of the oil bearing materials by the end of 2018 and pay an administrative penalty of $150. Following this settlement, in June 2018, DTSC referred the remaining alleged RCRA violations from EPA’s and DTSC’s December 2016 inspection to the California Attorney General for final resolution. The Torrance refinery and the California Attorney General are in discussions to resolve these remaining alleged RCRA violations. Other than the $150 DTSC administrative penalty, no other settlement or penalty demands have been received to date with respect to any of the other NOVs, preliminary findings, or order that are in excess of $100. As the ultimate outcomes are uncertain, the Company cannot currently estimate the final amount or timing of their resolution but any such amount is not expected to have a material impact on the Company’s financial position, results of operations or cash flows, individually or in the aggregate. Applicable Federal and State Regulatory Requirements 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 Company is required to comply with the Renewable Fuel Standard (“RFS”) implemented by the EPA, which sets annual quotas for the quantity of renewable fuels (such as ethanol) that must be blended into motor fuels consumed in the United States. In July 2018, the EPA issued proposed amendments to the RFS program regulations that would establish annual percentage standards for cellulosic biofuel, biomass-based diesel, advanced biofuel, and renewable fuels that would apply to all gasoline and diesel produced in the U.S. or imported in the year 2019. In addition, the separate proposal includes a proposed biomass-based diesel applicable volume for 2020. It is likely that RIN production will continue to be lower than needed forcing obligated parties, such as the Company, to purchase cellulosic waiver credits or purchase excess RINs from suppliers on the open market. 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 was implemented prior to the deadline of January 30, 2018. The Company is in the process of implementing the requirements of this regulation. The regulation does not 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 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. The Company is subject to obligations to purchase RINs. On February 15, 2017, the Company received a 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. As of January 1, 2011, the Company is required to comply with the EPA’s Control of Hazardous Air Pollutants From Mobile Sources, or MSAT2, regulations on gasoline that impose reductions in the benzene content of its produced gasoline. The Company purchases benzene credits to meet these requirements. The Company’s planned capital projects will reduce the amount of benzene credits that it needs to purchase. In addition, the renewable fuel standards mandate the blending of prescribed percentages of renewable fuels (e.g., ethanol and biofuels) into the Company’s produced gasoline and diesel. These new requirements, other requirements of the CAA and other presently existing or future environmental regulations may cause the Company to make substantial capital expenditures as well as the purchase of credits at significant cost, to enable its refineries to produce products that meet applicable requirements. The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), also known as “Superfund,” imposes liability, without regard to fault or the legality of the original conduct, on certain classes of persons who are considered to be responsible for the release of a “hazardous substance” into the environment. These persons include the current or former owner or operator of the disposal site or sites where the release occurred and companies that disposed of or arranged for the disposal of the hazardous substances. Under CERCLA, such persons may be subject to joint and several liability for investigation and the costs of cleaning up the hazardous substances that have been released into the environment, for damages to natural resources and for the costs of certain health studies. As discussed more fully above, certain of the Company’s sites are subject to these laws and the Company may be held liable for investigation and remediation costs or claims for natural resource damages. It is not uncommon for neighboring landowners and other third parties to file claims for personal injury and property damage allegedly caused by hazardous substances or other pollutants released into the environment. Analogous state laws impose similar responsibilities and liabilities on responsible parties. In the Company’s current normal operations, it has generated waste, some of which falls within the statutory definition of a “hazardous substance” and some of which may have been disposed of at sites that may require cleanup under Superfund. 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 PBF Holding. 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 99.0% interest in PBF LLC as of June 30, 2018 (96.7% as of December 31, 2017). 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. As a result of the reduction of the corporate federal tax rate to 21% as part of the Tax Cuts and Jobs Act, PBF Energy’s liability associated with the Tax Receivable Agreement was reduced. |
EMPLOYEE BENEFIT PLANS |
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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:
The Company adopted ASU 2017-07 as described in “Note 1 - Description of the Business and Basis of Presentation” effective January 1, 2018. The new guidance requires the bifurcation of net periodic benefit cost. The service cost component is presented within Income from operations, while the other components are reported separately outside of operations. This guidance was applied retrospectively in the Condensed Consolidated Statements of Operations. For the three and six months ended June 30, 2018, the Company recorded income of $277 and $555, respectively, related to the non-service cost components of net periodic benefit cost in Other income (expense). For the three and six months ended June 30, 2017, the Company recorded expense of $101 and $202, respectively, related to the non-service cost components of net periodic benefit cost in Other income (expense). |
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, 2018 and December 31, 2017. 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, 2018 and December 31, 2017, $9,464 and $9,593, 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, 2018 or 2017. Fair value of debt The table below summarizes the fair value and carrying value of debt as of June 30, 2018 and December 31, 2017.
(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 7.00% senior notes due 2023 and the 7.25% senior notes due 2025 (collectively, the “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. During 2017, Delaware City Refining entered into two platinum bridge leases which were settled as of June 30, 2018 and the Company entered into a new platinum bridge lease, which will expire in the first quarter of 2019. The total outstanding balance related to these bridge leases as of June 30, 2018 and December 31, 2017 was $1,298 and $10,987, respectively, and is included in Current debt on the Company’s Condensed Consolidated balance sheet. |
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 Inventory 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, 2018, there were 2,868,426 barrels of intermediates and refined products (3,000,142 barrels at December 31, 2017) 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, 2018, there were 22,752,000 barrels of crude oil and 5,293,000 barrels of refined products (22,348,000 and 1,989,000, respectively, as of December 31, 2017), 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, 2018 and December 31, 2017 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 statements of operations in which such gains and losses are reflected.
The Company had no ineffectiveness related to the fair value hedges for the three and six months ended June 30, 2018 or 2017. |
SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Dividend Declared On August 2, 2018, 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 30, 2018 to PBF Energy Class A common stockholders of record at the close of business on August 15, 2018. Development Assets Acquisition Pursuant to contribution agreements entered into on July 16, 2018, PBF Holding contributed certain of its subsidiaries (the “Development Assets Acquisition”) to PBF LLC. PBFX Op Co, PBFX’s wholly owned subsidiary, in turn acquired the subsidiary assets from PBF LLC that included the Toledo Rail Products Facility, an unloading and loading rail facility; the Chalmette Truck Rack, a truck loading rack facility; the Chalmette Rosin Yard, a rail yard facility; the Paulsboro Lube Oil Terminal, a lubes oil terminal facility; and the Delaware Ethanol Storage Facility, an ethanol storage facility (collectively, the “Development Assets”). The Development Assets Acquisition closed on July 31, 2018 for total consideration of $31,586 consisting of 1,494,134 common units of PBFX issued to PBF LLC. |
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, PBF International Inc. 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, Chalmette Logistics Company LLC, Paulsboro Terminaling 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 SHEETS (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)
D CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
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DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications [Text Block] | Presented below is a summary of the effects of this revised presentation on the Company’s historical statements of operations for the three and six months ended June 30, 2017:
(1) Amounts disclosed include the retrospective adjustments recorded as part of the adoption of ASU 2017-07, as defined below under “Recently Adopted Accounting Guidance”. |
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New Accounting Pronouncements | Recently Adopted Accounting Guidance In May 2014, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (Topic 606) “Revenue from Contracts with Customers.” (“ASC 606”). ASC 606 supersedes the revenue recognition requirements in Accounting Standards Codification 605 “Revenue Recognition” (“ASC 605”), and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASC 606 as of January 1, 2018 using the modified retrospective transition method. See “Note 2 - Revenues” for further details. 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 periodic 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 non-service 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. 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 adopted ASU 2017-07 effective January 1, 2018 and applied the new guidance retrospectively in the Condensed Consolidated Statement of Operations. For the three and six months ended June 30, 2018, the Company recorded income of $277 and $555, respectively. For the three and six months ended June 30, 2017, the Company recorded expense of $101 and $202, respectively. These income and expense amounts have been recorded within Other income (expense) for the non-service components of net periodic benefit cost that were historically recorded within Operating expenses and General and administrative expenses. 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’s adoption of this guidance did not materially impact its condensed consolidated financial statements. Recent Accounting Pronouncements 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. Additional ASUs have been issued subsequent to ASU 2016-02 to provide additional clarification and implementation guidance for leases related to ASU 2016-02 related to, among other things, the application of certain practical expedients, the rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments (collectively, the Company refers to ASU 2016-02 and these additional ASUs as the “Updated Lease Guidance”). The Updated Lease 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. The Updated Lease Guidance is effective for interim and annual periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. While early adoption is permitted, the Company will not early adopt the Updated Lease Guidance. The Company has established a working group to study and lead the implementation of the Updated Lease Guidance and has instituted a task plan designed to meet the requirements and implementation deadline. The Company has also evaluated and purchased a lease software system, completed software design and configuration of the system, and begun testing the implementation of the selected system. The working group continues to evaluate the impact of the Updated Lease Guidance on the Company’s consolidated financial statements and related disclosures and the impact on its business processes and controls. While the assessment of this standard is ongoing, the Company has identified that the most significant impacts of the Updated Lease 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 recognition of the interest expense component of financing leases. The new standard will also require additional disclosures for financing and operating leases. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). The amendments in ASU 2017-12 more closely align the results of cash flow and fair value hedge accounting with risk management activities through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The amendments in ASU 2017-12 address specific limitations in current GAAP by expanding hedge accounting for both nonfinancial and financial risk components and by refining the measurement of hedge results to better reflect an entity’s hedging strategies. Thus, the amendments in ASU 2017-12 will enable an entity to better portray the economic results of hedging activities for certain fair value and cash flow hedges and will avoid mismatches in earnings by allowing for greater precision when measuring changes in fair value of the hedged item for certain fair value hedges. Additionally, by aligning the timing of recognition of hedge results with the earnings effect of the hedged item for cash flow and net investment hedges, and by including the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is presented, the results of an entity’s hedging program and the cost of executing that program will be more visible to users of financial statements. The guidance in ASU 2017-12 concerning amendments to cash flow and net investment hedge relationships that exist on the date of adoption should be applied using a modified retrospective approach (i.e., with a cumulative effect adjustment recorded to the opening balance of retained earnings as of the initial application date). The guidance in ASU 2017-12 also provides transition relief to make it easier for entities to apply certain amendments to existing hedges (including fair value hedges) where the hedge documentation needs to be modified. The presentation and disclosure requirements of ASU 2017-12 should be applied prospectively. The amendments in this ASU are effective for annual periods beginning after December 15, 2018, 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 June 2018, the FASB issued ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718): Targeted Improvements to Non-employee Share-Based Payment Accounting” (“ASU 2018-07”). ASU 2018-07 expands the scope of Topic 718, Compensation-Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Under ASU 2018-07, the existing employee guidance for share-based payments will apply to nonemployee share-based transactions (as long as the transaction is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost. The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition, the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. ASU 2018-07 also specifies the following: (i) that equity-classified share-based payment awards issued to nonemployees will now be measured on the grant date, instead of the previous requirement to remeasure the awards through the performance completion date; (ii) for performance conditions, compensation cost associated with the award will be recognized when achievement of the performance condition is probable, rather than upon achievement of the performance condition; (iii) the current requirement to reassess the classification (equity or liability) for nonemployee awards upon vesting will be eliminated, except for awards in the form of convertible instruments. Finally, ASU 2018-07 also clarifies that any share-based payment awards issued to customers should be evaluated under ASC 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods. Early adoption is permitted. Upon adoption, an entity should only re-measure liability-classified awards that have not been settled by the date of adoption and equity-classified awards for which a measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Upon transition, the entity is required to measure these nonemployee awards at fair value as of the adoption date. The entity must not re-measure assets that are completed. Disclosures required at transition include the nature of and reason for the change in accounting principle and, if applicable, quantitative information about the cumulative effect of the change on retained earnings or other components of equity. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures. |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Change in presentation (Tables) |
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Change in presentation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Change in Presentation [Table Text Block] |
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REVENUES (Tables) |
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Revenues [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customers by Products and Services [Table Text Block] | The following table provides information relating to the Company’s revenues from external customers for each product or group of similar products for the periods presented:
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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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Schedule of related party transactions | A summary of transactions with PBFX is as follows:
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EMPLOYEE BENEFIT PLANS (Tables) |
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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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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, 2018 and December 31, 2017. 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, 2018 and December 31, 2017.
(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 7.00% senior notes due 2023 and the 7.25% senior notes due 2025 (collectively, the “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. During 2017, Delaware City Refining entered into two platinum bridge leases which were settled as of June 30, 2018 and the Company entered into a new platinum bridge lease, which will expire in the first quarter of 2019. The total outstanding balance related to these bridge leases as of June 30, 2018 and December 31, 2017 was $1,298 and $10,987, respectively, and is included in Current debt on the Company’s Condensed Consolidated balance sheet. |
DERIVATIVES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2018 and December 31, 2017 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 statements of operations in which such gains and losses are reflected.
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CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDINGS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Subsidiary Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED)
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Condensed Income Statement | D CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS 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 STATEMENTS OF CASH FLOWS (UNAUDITED)
13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF HOLDING CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED)
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REVENUES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
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Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
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Revenues | $ 7,440,470 | $ 5,013,251 | $ 13,240,071 | $ 9,763,449 | |
Deferred revenue | 3,657 | 3,657 | $ 7,495 | ||
Gasoline And Distillate [Member] | |||||
Revenues | 6,341,757 | 4,154,375 | 11,336,077 | 8,243,186 | |
Other Refining and Marketing [Member] | |||||
Revenues | 404,197 | 310,951 | 642,906 | 535,361 | |
Asphalt and Residual Oil [Member] | |||||
Revenues | 397,203 | 287,731 | 706,064 | 472,859 | |
Chemicals [Member] | |||||
Revenues | 202,552 | 179,076 | 378,660 | 363,499 | |
Lubricants [Member] | |||||
Revenues | $ 94,761 | $ 81,118 | $ 176,364 | $ 148,544 |
INVENTORIES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
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Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
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Inventory [Line Items] | ||||||||
Crude oil and feedstocks | $ 1,159,842 | $ 1,159,842 | $ 1,073,093 | |||||
Refined products and blendstocks | 1,332,170 | 1,332,170 | 1,342,294 | |||||
Warehouse stock and other | 103,066 | 103,066 | 98,866 | |||||
Inventory, Gross | 2,595,078 | 2,595,078 | 2,514,253 | |||||
Lower of cost or market adjustment | (54,801) | $ 763,122 | (54,801) | $ 763,122 | $ (212,803) | (300,456) | $ 612,027 | $ 595,988 |
Inventories | 2,540,277 | 2,540,277 | 2,213,797 | |||||
Operating Income (Loss) | (392,187) | 142,173 | (456,916) | 173,934 | ||||
Net income (loss) | 367,535 | (205,376) | 399,942 | (270,916) | ||||
Titled Inventory [Member] | ||||||||
Inventory [Line Items] | ||||||||
Crude oil and feedstocks | 1,159,842 | 1,159,842 | 1,073,093 | |||||
Refined products and blendstocks | 1,036,028 | 1,036,028 | 1,030,817 | |||||
Warehouse stock and other | 103,066 | 103,066 | 98,866 | |||||
Inventory, Gross | 2,298,936 | 2,298,936 | 2,202,776 | |||||
Lower of cost or market adjustment | (11,751) | (11,751) | (232,652) | |||||
Inventories | 2,287,185 | 2,287,185 | 1,970,124 | |||||
Inventory Supply and Offtake Arrangements [Member] | ||||||||
Inventory [Line Items] | ||||||||
Crude oil and feedstocks | 0 | 0 | 0 | |||||
Refined products and blendstocks | 296,142 | 296,142 | 311,477 | |||||
Warehouse stock and other | 0 | 0 | 0 | |||||
Inventory, Gross | 296,142 | 296,142 | 311,477 | |||||
Lower of cost or market adjustment | (43,050) | (43,050) | (67,804) | |||||
Inventories | 253,092 | 253,092 | $ 243,673 | |||||
Scenario, Adjustment [Member] | ||||||||
Inventory [Line Items] | ||||||||
Operating Income (Loss) | $ (158,002) | $ (151,095) | $ (245,655) | $ (167,134) |
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Accrued Expenses: | ||
Inventory-related accruals | $ 1,138,913 | $ 1,151,810 |
Inventory intermediation agreements | 227,740 | 244,287 |
Excise and sales tax payable | 176,557 | 118,515 |
Accrued transportation costs | 53,464 | 64,400 |
Renewable energy credit and emissions obligations | 52,390 | 26,231 |
Accrued utilities | 31,647 | 42,189 |
Accrued salaries and benefits | 30,347 | 58,589 |
Accrued refinery maintenance and support costs | 25,578 | 35,674 |
Customer deposits | 22,670 | 16,133 |
Accrued capital expenditures | 14,371 | 17,342 |
Accrued interest | 10,516 | 9,466 |
Environmental liabilities | 6,940 | 7,968 |
Other | 27,601 | 8,255 |
Total accrued expenses | $ 1,818,734 | $ 1,800,859 |
INCOME TAXES Income Taxes (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Dec. 31, 2015
subsidiary
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
|
Income Taxes [Line Items] | |||||
Number Of Subsidiaries Acquired | subsidiary | 2 | ||||
Current Income Tax Expense (Benefit) | $ (26) | $ 737 | $ (31) | $ 1,209 | |
Deferred income taxes | (3,957) | 5,161 | (4,653) | 5,123 | |
Income tax (benefit) expense | $ (3,983) | $ 5,898 | $ (4,684) | $ 6,332 |
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Other non-service component of net periodic benefit costs | $ 277 | $ (101) | $ 555 | $ (202) |
Pension Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 11,836 | 10,144 | 23,672 | 20,287 |
Interest cost | 1,449 | 1,084 | 2,896 | 2,168 |
Expected return on plan assets | (2,136) | (1,442) | (4,270) | (2,884) |
Amortization of prior service cost | 22 | 13 | 43 | 26 |
Amortization of actuarial loss | 72 | 113 | 143 | 226 |
Net periodic benefit cost | 11,243 | 9,912 | 22,484 | 19,823 |
Post Retirement Medical Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 287 | 316 | 574 | 632 |
Interest cost | 155 | 172 | 310 | 344 |
Amortization of prior service cost | 161 | 161 | 323 | 322 |
Net periodic benefit cost | $ 603 | $ 649 | $ 1,207 | $ 1,298 |
FAIR VALUE MEASUREMENTS (Change in Fair Value at Level 3) (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
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 | 0 | 0 | (84,000) |
Purchases | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 45,000 |
Unrealized loss included in earnings | 0 | 0 | 0 | 39,000 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVES (Narrative) (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018
USD ($)
bbl
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
bbl
|
Jun. 30, 2017
USD ($)
|
Dec. 31, 2017
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 | 2,868,426 | 2,868,426 | 3,000,142 | ||
Crude Oil Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount, volume | 22,752,000 | 22,752,000 | 22,348,000 | ||
Refined Product Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount, volume | 5,293,000 | 5,293,000 | 1,989,000 |
DERIVATIVES (Fair Value of Derivative Instruments) (Details) - Accrued Expenses [Member] - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Designated as Hedging Instrument [Member] | Inventory Intermediation Agreement Obligation [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Asset/(Liability) | $ (10,259) | $ (7,721) |
Not Designated as Hedging Instrument [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value Asset/(Liability) | $ (41,486) | $ (74,320) |
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | |||
---|---|---|---|---|
Aug. 02, 2018 |
Jul. 31, 2018 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Subsequent Event [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 110,169 | $ 179,575 | ||
Subsequent Event [Member] | PBF LLC [Member] | ||||
Subsequent Event [Line Items] | ||||
Stock Issued During Period, Shares, New Issues | 1,494,134 | |||
Subsequent Event [Member] | Development Assets Acquisition [Member] | ||||
Subsequent Event [Line Items] | ||||
Payments to Acquire Property, Plant, and Equipment | $ 32 | |||
Subsequent Event [Member] | PBF Energy [Member] | Class A Common Stock [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends declared per share | $ 0.3 |
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