FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2018

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 December 31, 2018 and 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 consolidated balance sheet.



	As of December 31, 2018
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Gross Fair Value		Effect of Counter-party Netting		Net Carrying Value on Balance Sheet
Assets:
Money market funds	$	2,784	$	—	$	—	$	2,784	N/A		$	2,784
Commodity contracts	1,230		8,872		—		10,102		(2,895	)	7,207
Derivatives included with inventory intermediation agreement obligations	—		24,069		—		24,069		—		24,069
Liabilities:
Commodity contracts	2,685		210		—		2,895		(2,895	)	—
Catalyst lease obligations	—		44,353		—		44,353		—		44,353



	As of December 31, 2017
	Fair Value Hierarchy
	Level 1		Level 2		Level 3		Total Gross Fair Value		Effect of Counter-party Netting		Net Carrying Value on Balance Sheet
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

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:



	Year Ended December 31,
	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	$	—	$	—

Schedule of Fair value of Debt

The table below summarizes the fair value and carrying value of debt as of December 31, 2018 and 2017.



	December 31, 2018						December 31, 2017
	Carrying value			Fair value			Carrying value			Fair value
2025 Senior Notes ^(a)	$	725,000		$	688,420		$	725,000		$	763,945
2023 Senior Notes ^{(a) (d)}	500,000			479,387			500,000			522,101
Revolving Credit Facility ^(b)	—			—			350,000			350,000
PBF Rail Term Loan ^(b)	21,554			21,554			28,366			28,366
Catalyst leases ^(c)	44,353			44,353			59,048			59,048
	1,290,907			1,233,714			1,662,414			1,723,460
Less - Current debt ^(c)	(2,378		)	(2,378		)	(10,987		)	(10,987		)
Less - Unamortized deferred financing costs	(30,537		)	n/a			(25,178		)	n/a
Long-term debt	$	1,257,992		$	1,231,336		$	1,626,249		$	1,712,473

(a) The estimated fair value, categorized as a Level 2 measurement, was calculated based on the present value of future expected payments utilizing implied current market interest rates based on quoted prices of the Senior 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 during the second quarter of 2018. During 2018 Delaware City Refining, Toledo Refining and Chalmette Refining entered into three new platinum bridge leases which will expire in 2019. The bridge leases are payable at maturity and are not anticipated to be renewed. The total outstanding balance related to these bridge leases as of December 31, 2018 was $2,378 and is included in Current debt in the Company’s consolidated balance sheet.

(d) As discussed in “Note 8 - Credit Facility and Debt”, these notes became unsecured following the Collateral Fall-Away Event on May 30, 2017.