INVENTORIES

3 Months Ended

Mar. 31, 2022

Inventories consisted of the following:


March 31, 2022
(in millions)	Titled Inventory		Inventory Intermediation Agreement		Total
Crude oil and feedstocks	$	1,198.2	$	210.9	$	1,409.1
Refined products and blendstocks	1,030.3		310.7		1,341.0
Warehouse stock and other	143.4		—		143.4
	$	2,371.9	$	521.6	$	2,893.5
Lower of cost or market adjustment	—		—		—
Total inventories	$	2,371.9	$	521.6	$	2,893.5


December 31, 2021
(in millions)	Titled Inventory		Inventory Intermediation Agreement		Total
Crude oil and feedstocks	$	953.5	$	151.4	$	1,104.9
Refined products and blendstocks	964.6		293.8		1,258.4
Warehouse stock and other	141.8		—		141.8
	$	2,059.9	$	445.2	$	2,505.1
Lower of cost or market adjustment	—		—		—
Total inventories	$	2,059.9	$	445.2	$	2,505.1

On October 25, 2021, PBF Holding and its subsidiaries, DCR, PRC and Chalmette Refining (collectively, the “PBF Entities”), entered into a third amended and restated inventory intermediation agreement (the “Third Inventory Intermediation Agreement”) with J. Aron & Company, a subsidiary of The Goldman Sachs Group, Inc. (“J. Aron”), pursuant to which the terms of the existing inventory intermediation agreements were amended and restated in their entirety, including, among other things, pricing and an extension of terms. The Third Inventory Intermediation Agreement extends the term to December 31, 2024, which term may be further extended by mutual consent of the parties to December 31, 2025.

Pursuant to the Third Inventory Intermediation Agreement, J. Aron will continue to purchase and hold title to certain inventory, including crude oil, intermediate and certain finished products (the “J. Aron Products”) purchased or produced by the Paulsboro and Delaware City refineries (and, at the election of the PBF Entities, the Chalmette refinery) (the “Refineries”) and delivered into storage tanks at the Refineries (the “Storage Tanks”). The J. Aron Products are sold back to the Company as the J. Aron Products are discharged out of the Storage Tanks. These purchases and sales are settled daily, and pricing is trued-up monthly at the market prices related to those J. Aron Products. These transactions are considered to be made in contemplation of each other and, accordingly, do not result in the recognition of a sale when title passes from the Refineries to J. Aron. Additionally, J. Aron has the right to store the J. Aron Products purchased in Storage Tanks under the Third Inventory Intermediation Agreement and will retain these storage rights for the term of the agreement. PBF Holding continues to market and sell the J. Aron Products independently to third parties.

At March 31, 2022 the replacement value of inventories exceeded the last-in, first-out carrying value. There was no lower of cost or market (“LCM”) inventory reserve at March 31, 2022 and December 31, 2021.

During the three months ended March 31, 2021, the Company recorded an adjustment to value its inventories to the lower of cost or market which increased income from operations by $405.6 million, reflecting the net change in the LCM inventory reserve from $669.6 million at December 31, 2020 to $264.0 million at March 31, 2021.