UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
 
x☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2015March 31, 2020
Or
or
¨☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission File Number: 001-35764
Commission File Number: 333-206728-02

PBF ENERGY INC.
PBF ENERGY COMPANY LLC
(Exact name of registrant as specified in its charter)

Delaware45-3763855
Delaware61-1622166
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
DELAWARE61-1622166
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
One Sylvan Way, Second Floor
Parsippany, New Jersey		07054
ParsippanyNew Jersey07054
(Address of principal executive offices)(Zip Code)
(973) 455-7500
(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act.
Title of each classTrading SymbolName of each exchange on which registered
Common Stockpar value $.001PBFNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports);, and (2) has been subject to such filing requirements for the past 90 days.  

PBF Energy Inc.     Yes [x] No [ ]
PBF Energy Company LLC  Yes [x] No [x][ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

PBF Energy Inc.    Yes [x] No [ ]
PBF Energy Company LLC Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”filer,” “smaller reporting company”, and “smaller reporting“emerging growth company” in Rule 12b-2 of the Exchange Act.
PBF Energy Inc.
Large accelerated filero☑
Accelerated filer o
Non-accelerated filerþ
☐
Smaller reporting company
☐Emerging growth company☐
PBF Energy Company LLCLarge accelerated filer
☐
Accelerated filer o
Non-accelerated filer☑Smaller reporting company☐Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
PBF Energy Inc.    ☐
PBF Energy Company LLC ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
PBF Energy Inc.    Yes [ ]☐ No [x]☑
PBF Energy Company LLC Yes ☐ No ☑

As of May 12, 2020, PBF Energy Inc. had outstanding 119,986,604 shares of Class A common stock and 18 shares of Class B common stock. PBF Energy Inc. is the sole managing member of, and owner of an equity interest representing approximately 99.2% of the outstanding economic interest in PBF Energy Company LLC as of March 31, 2020. There is no trading in the membership interest of PBF Energy Company LLC and therefore an aggregate market value based on such is not determinable. PBF Energy Company LLC has no0 common stock outstanding. As of December 4, 2015, approximately 95.1% of the outstanding economic interests in PBF Energy Company LLC were owned by PBF Energy Inc. and the remaining economic interests were held by the members of PBF Energy Company LLC, other than PBF Energy Inc.






PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2015MARCH 31, 2020
TABLE OF CONTENTS

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
4
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTSITEM 1.
PART I – FINANCIAL INFORMATION
ITEM 1.
Financial Statements (Unaudited)
PBF Energy Inc.
57
68
9
10
11
PBF Energy Company LLC
13
14
715
16
817
1019
ITEM 2.
3253
ITEM 3.
5386
ITEM 4.
5488
ITEM 1.
5589
ITEM 1A.
5694
ITEM 22.
5796
ITEM 6.
5797
5899



2

EXPLANATORY NOTE

As previously disclosed in the Current Report on Form 8-K filed by PBF Energy Inc. (“PBF Energy”) and PBF Energy Company LLC (“PBF LLC”) on May 7, 2020, the Company delayed the filing of this Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 (this “Form 10-Q”) due to circumstances related to the recent novel coronavirus (“COVID-19”) pandemic in reliance on the “Order under Section 36 of the Securities Exchange Act of 1934 Modifying Exemptions From the Reporting and Proxy Delivery Requirements for Public Companies” dated March 25, 2020 (Release No. 34-88465) issued by the U.S. Securities and Exchange Commission (“SEC”).

Since early March 2020, the Company has been following the recommendations of state and local health authorities to minimize the exposure risk for its employees, including suggested and mandated travel restrictions, office closures, stay-at-home orders and limitations on the availability of workforces. These restrictions have in turn caused a delay in the completion of the Form 10-Q process. In addition, the Company’s management has had to devote significant time and attention to assessing the potential impact of the COVID-19 pandemic and related events on its operations and financial position and developing operational and financial plans to address those matters, which has diverted management resources from completing the tasks necessary to file this Form 10-Q by the applicable filing due date.

This combined Quarterly Report on Form 10-Q is filed by PBF Energy Company LLC (“and PBF LLC”),LLC. Each Registrant hereto is filing on its own behalf all of the information contained in this report that relates to such Registrant. Each Registrant hereto is not filing any information that does not relate to such Registrant, and therefore makes no representation as to any such information. PBF Energy is a Delaware limited liability company and holding company whose primary asset is an equity interest in PBF LLC. PBF Energy is the sole managing member is PBF Energy Inc. ("PBF Energy"). As of, September 30, 2015,and owner of an equity interest representing approximately 94.4%99.2% of the outstanding economic interests in PBF LLC were owned byas of March 31, 2020. PBF Energy operates and controls all of the remaining economic interests were held bybusiness and affairs and consolidates the membersfinancial results of PBF LLC, other than PBF Energy. PBF LLC and its subsidiaries' business and affairs are operated and controlled by PBF Energy.subsidiaries. PBF LLC is a holding company for the companies that directly and indirectly own and operate PBF Energy'sour business. PBF Holding Company LLC (“PBF Holding”) is a wholly-owned subsidiary of PBF LLC.LLC and PBF Finance Corporation (“PBF Finance”) is a wholly-owned subsidiary of PBF Holding. As of March 31, 2020, PBF LLC also holds a 53.7%48.2% limited partner interest and a non-economic general partner interest and all of the incentive distribution rights in PBF Logistics LP ("PBFX" or the "Partnership"(“PBFX”), a publicly traded master limited partnership.partnership (“MLP”). PBF LLC,Energy, through its ownership of the general partner of PBFX,PBF LLC, consolidates the financial results of PBFX and its subsidiaries and records a noncontrolling interest in its consolidated financial statements representing the economic interests of PBFX's unit holdersPBFX’s unitholders other than PBF LLC. Collectively, PBF LLCEnergy and its consolidated subsidiaries, including PBF LLC, PBF Holding, and PBFX are referred to hereinafter as the "Company"“Company” unless the context otherwise requires. Discussions or areas of this report that either apply only to PBF Energy or PBF LLC are clearly noted in such sections. Unless the context indicates otherwise, the terms “we,” “us,” and “our” refer to both PBF Energy and PBF LLC and its consolidated subsidiaries.


23



CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains certain “forward-looking statements”, as defined in the Private Securities Litigation Reform Act of 1995 (“PSLRA”), of expected future developments that involve risks and uncertainties. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” or “anticipates” or similar expressions that relate to our strategy, plans or intentions. All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results or to our strategies, objectives, intentions, resources and expectations regarding future industry trends are forward-looking statements.statements made under the safe harbor provisions of the PSLRA except to the extent such statements relate to the operations of a partnership or limited liability company. In addition, we, through our senior management, from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those that we expected. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based uponon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results.
Important factors that could cause actual results to differ materially from our expectations, which we refer to as “cautionary statements,” are disclosed in the section entitled “Risk Factors” in our prospectus dated October 30, 2015 (Registration No. 333-206728) filed with the SEC on October 30, 2015 (the “Prospectus”)under “Management's Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this QuarterlyForm 10-Q, the Annual Report on Form 10-Q.10-K for the year ended December 31, 2019 of PBF Energy and PBF LLC, which we refer to as our 2019 Annual Report on Form 10-K, and in our other filings with the SEC. All forward-looking information in this Quarterly Report on Form 10-Q and subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements. Some of the factors that we believe could affect our results include:
•the effect of the COVID-19 pandemic and related governmental and consumer responses on our business, financial condition and results of operations;
•supply, demand, prices and other market conditions for our products, including volatility in commodity prices;
•the effects of competition in our markets;
•changes in currency exchange rates, interest rates and capital costs;
•adverse developments in our relationship with both our key employees and unionized employees;
•our ability to operate our businesses efficiently, manage capital expenditures and costs (including general and administrative expenses) and generate earnings and cash flow;
•our indebtedness;
•our substantial indebtedness;expectations with respect to our capital improvement and turnaround projects;
•our supply and inventory intermediation arrangements expose us to counterparty credit and performance risk;
•termination of our Inventory Intermediation Agreements (as defined in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations”) with J. Aron & Company, a subsidiary of The Goldman Sachs Group, Inc. (“J. Aron”), which could have a material adverse effect on our liquidity, as we would be required to finance our crude oil, intermediate and refined products inventory covered by the agreements. Additionally, we are obligated to repurchase from J. Aron certain crude, intermediates and finished products (the “J. Aron Products”) located at the Paulsboro andCompany’s storage tanks at the Delaware City refineries’and Paulsboro refineries (the “East Coast Refineries”) and at PBFX’s assets acquired from
4

Crown Point International, LLC in October 2018 (together with the Company’s storage tanks at the East Coast Refineries, the “J. Aron Storage Tanks”) upon termination of these agreements;
•restrictive covenants in our indebtedness that may adversely affect our operational flexibility or ability to make distributions;flexibility;
•payments by PBF Energy to the current and former holders of PBF LLC Series A Units and PBF LLC Series B Units under thePBF Energy’s tax receivable agreement entered with the PBF LLC Series A and PBF LLC Series B unitholders (the “Tax Receivable Agreement”) for certain tax benefits PBF Energywe may claim;
•our assumptions regarding payments arising under the tax receivable agreementPBF Energy’s Tax Receivable Agreement and other arrangements relating to our organizational structure are subject to change due to various factors, including, among other factors, the timing of exchanges of PBF LLC Series A Units for shares of PBF Energy'sEnergy Class A common stock as contemplated by the tax receivable agreement,Tax Receivable Agreement, the price of PBF Energy'sEnergy Class A common stock at the time of such exchanges, the extent to which such exchanges are taxable, and the amount and timing of our income;

3


•our expectations and timing with respect to our acquisition activity and whether such acquisitions are accretive or dilutive to PBF Energy's shareholders;
•our expectations and timing with respect to our capital improvement and turnaround projects;
•the status of an air permit to transfer crude through the Delaware City refinery's dock;
•the impact of disruptions to crude or feedstock supply to any of our refineries, including disruptions due to problems at PBFX or with third partythird-party logistics infrastructure or operations, including pipeline, marine and rail transportation;
•the possibility that we might reduce or not make further dividend payments;
•the inability of our subsidiaries to freely pay dividends or make distributions to us;
•the impact of current and future laws, rulings and governmental regulations, including the implementation of rules and regulations regarding transportation of crude oil by rail;
•the impact of the recently enacted federal income tax legislation on our business;
•the threat of cyber-attacks;
•our increased dependence on technology;
•the effectiveness of our crude oil sourcing strategies, including our crude by rail strategy and related commitments;
•adverse impacts related to any changelegislation by the federal government inlifting the restrictions on exporting U.S. crude oil including relaxing limitations onoil;
•adverse impacts from changes in our regulatory environment, such as the exporteffects of certain types of crude oilcompliance with the California Global Warming Solutions Act (also referred to as “AB32”), or condensates or the lifting of the restrictions entirely;from actions taken by environmental interest groups;
•market risks related to the volatility in the price of Renewable Identification Numbers ("RINS"(“RINs”) required to comply with the Renewable Fuel Standards;Standards and greenhouse gas (“GHG”) emission credits required to comply with various GHG emission programs, such as AB32;
•adverse impacts from changes in our regulatory environment or actions taken by environmental interest groups;
•our ability to consummate the pending acquisition of the ownership interests of the Torrance refinery and related logistics assets (collectively, the "Torrance Acquisition"), the timing for the closing of such acquisition and our plans for financing such acquisition;
•our ability to complete the successful integration of the completed acquisition of Chalmette Refining, L.L.CMartinez refinery and related logistic assets (collectively, the "Chalmette Acquisition") and the pending Torrance Acquisitionany other acquisitions into our business and to realize the benefits from such acquisitions;
•unforeseen liabilities associated with the ChalmetteMartinez Acquisition and/or Torrance Acquisition;(as defined in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations) and any other acquisitions;
•the costs of PBF Energy being a public company, including Sarbanes-Oxley Act compliance;
•risk associated with the operation of PBFX as a separate, publicly-traded entity;
•potential tax consequences related to our investment in PBFX; and
•receipt of regulatory approvals and complianceany decisions we continue to make with contractual obligations required in connection withrespect to our energy-related logistics assets that may be transferred to PBFX.
5

We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this Quarterly Report on Form 10-Q may not in fact occur. Accordingly, investors should not place undue reliance on those statements.
Our forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q. Except as required by applicable law, including the securities laws of the United States, we do not intend to update or revise any forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing.


4
6


PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
PBF ENERGY INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions, except share and per share data)
March 31,
2020		December 31,
2019
ASSETS
Current assets:
Cash and cash equivalents (PBFX: $116.0 and $35.0, respectively)$722.1  $814.9  
Accounts receivable439.1  835.0  
Inventories986.5  2,122.2  
Assets held for sale58.4  —  
Prepaid and other current assets103.6  51.6  
Total current assets2,309.7  3,823.7  
Property, plant and equipment, net (PBFX: $850.0 and $854.6, respectively)4,995.3  4,023.2  
Deferred tax assets324.4  —  
Operating lease right of use assets330.5  306.4  
Financing lease right of use assets84.9  24.2  
Deferred charges and other assets, net1,089.3  954.9  
Total assets$9,134.1  $9,132.4  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$437.1  $601.4  
Accrued expenses1,492.6  1,815.6  
Deferred revenue36.7  20.1  
Current operating lease liabilities79.5  72.1  
Total current liabilities2,045.9  2,509.2  
Long-term debt (PBFX: $902.5 and $802.1, respectively)3,546.1  2,064.9  
Payable to related parties pursuant to Tax Receivable Agreement385.1  373.5  
Deferred tax liabilities44.8  96.9  
Long-term operating lease liabilities249.4  233.1  
Long-term financing lease liabilities73.2  18.4  
Other long-term liabilities310.1  250.9  
Total liabilities6,654.6  5,546.9  
Commitments and contingencies (Note 9)
Equity:
PBF Energy Inc. equity
Class A common stock, $0.001 par value, 1,000,000,000 shares authorized, 119,986,604 shares outstanding at March 31, 2020, 119,804,971 shares outstanding at December 31, 20190.1  0.1  
Class B common stock, $0.001 par value, 1,000,000 shares authorized, 18 shares outstanding at March 31, 2020, 20 shares outstanding at December 31, 2019—  —  
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares outstanding at March 31, 2020 and December 31, 2019—  —  
Treasury stock, at cost, 6,455,792 shares outstanding at March 31, 2020 and 6,424,787 shares outstanding at December 31, 2019(165.7) (165.7) 
Additional paid in capital2,825.6  2,812.3  
Retained earnings (Accumulated deficit)(700.6) 401.2  
Accumulated other comprehensive loss(11.1) (8.3) 
Total PBF Energy Inc. equity1,948.3  3,039.6  
Noncontrolling interest531.2  545.9  
Total equity2,479.5  3,585.5  
Total liabilities and equity$9,134.1  $9,132.4  

See notes to condensed consolidated financial statements.
7

PBF ENERGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions, except share and per share data)
Three Months Ended March 31,
20202019
Revenues$5,277.5  $5,216.2  
Cost and expenses:
Cost of products and other5,963.3  4,209.2  
Operating expenses (excluding depreciation and amortization expense as reflected below)531.7  479.0  
Depreciation and amortization expense116.7  103.0  
Cost of sales6,611.7  4,791.2  
General and administrative expenses (excluding depreciation and amortization expense as reflected below)82.5  57.6  
Depreciation and amortization expense2.9  2.8  
Change in fair value of contingent consideration(52.8) —  
Total cost and expenses6,644.3  4,851.6  
Income (loss) from operations(1,366.8) 364.6  
Other income (expense):
Interest expense, net(49.2) (39.5) 
Change in Tax Receivable Agreement liability(11.6) —  
Change in fair value of catalyst obligations11.7  (3.1) 
Debt extinguishment costs(22.2) —  
Other non-service components of net periodic benefit cost1.0  (0.1) 
Income (loss) before income taxes(1,437.1) 321.9  
Income tax (benefit) expense(374.6) 80.5  
Net income (loss)(1,062.5) 241.4  
Less: net income attributable to noncontrolling interests3.4  12.2  
Net income (loss) attributable to PBF Energy Inc. stockholders$(1,065.9) $229.2  
Weighted-average shares of Class A common stock outstanding
Basic119,380,210  119,880,915  
Diluted119,380,210  122,175,744  
Net income (loss) available to Class A common stock per share:
Basic$(8.93) $1.91  
Diluted$(8.93) $1.89  

See notes to condensed consolidated financial statements.
8

PBF ENERGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited, in millions)

Three Months Ended March 31,
20202019
Net income (loss)$(1,062.5) $241.4  
Other comprehensive income (loss):
Unrealized gain on available for sale securities0.6  —  
Net (loss) gain on pension and other post-retirement benefits(3.4) 0.2  
Total other comprehensive income (loss)(2.8) 0.2  
Comprehensive income (loss)(1,065.3) 241.6  
Less: comprehensive income attributable to noncontrolling interests3.4  12.1  
Comprehensive income (loss) attributable to PBF Energy Inc. stockholders$(1,068.7) $229.5  

See notes to condensed consolidated financial statements.
9

PBF ENERGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited, in millions, except share and per share data)
 Class A
Common Stock		Class B
Common Stock		Additional
Paid-in
Capital		Retained
Earnings (Accumulated Deficit)		Accumulated
Other
Comprehensive
Income (Loss)		Treasury StockNoncontrolling
Interest		Total
Equity
 SharesAmountSharesAmountSharesAmount
Balance, December 31, 2019119,804,971  $0.1  20  $—  $2,812.3  $401.2  $(8.3) 6,424,787  $(165.7) $545.9  $3,585.5  
Comprehensive Income (loss)—  —  —  —  —  (1,065.9) (2.8) —  —  3.4  (1,065.3) 
Exercise of warrants and options7,500  —  —  0.2  —  —  —  —  —  0.2  
Taxes paid for net settlement of equity-based compensation—  —  —  —  (0.9) —  —  —  —  —  (0.9) 
Distributions to PBF Energy Company LLC members—  —  —  —  —  —  —  —  —  (0.4) (0.4) 
Distributions to PBF Logistics LP public unitholders—  —  —  —  —  —  —  —  —  (17.1) (17.1) 
Stock-based compensation1,861  —  —  —  6.8  —  —  —  —  1.3  8.1  
Dividends ($0.30 per common share)—  —  —  —  —  (35.9) —  —  —  —  (35.9) 
Exchange of PBF Energy Company LLC Series A Units for PBF Energy Class A common stock203,277  —  (2) —  1.9  —  —  —  —  (1.9) —  
Treasury stock purchases(31,005) —  —  —  —  —  —  31,005  —  —  —  
Other—  —  —  —  5.3  —  —  —  —  —  5.3  
Balance, March 31, 2020119,986,604  $0.1  18  $—  $2,825.6  $(700.6) $(11.1) 6,455,792  $(165.7) $531.2  $2,479.5  
Balance, December 31, 2018119,874,191  $0.1  20  $—  $2,633.8  $225.8  $(22.4) 6,274,261  $(160.8) $572.0  $3,248.5  
Comprehensive Income—  —  —  —  —  229.3  0.2  —  —  12.1  241.6  
Exercise of warrants and options5,025  —  —  0.1  —  —  —  —  —  0.1  
Taxes paid for net settlement of equity-based compensation—  —  —  —  (1.0) —  —  —  —  —  (1.0) 
Distributions to PBF Energy Company LLC members—  —  —  —  —  —  —  —  —  (0.4) (0.4) 
Distributions to PBF Logistics LP public unitholders—  —  —  —  —  —  —  —  —  (13.2) (13.2) 
Stock-based compensation(1,410) —  —  —  6.2  —  —  —  —  1.0  7.2  
Dividends ($0.30 per common share)—  —  —  —  —  (36.0) —  —  —  —  (36.0) 
Issuance of additional PBFX common units—  —  —  —  82.4  —  —  —  —  (82.4) —  
Treasury stock purchases(29,671) —  —  —  1.0  —  —  29,671  (1.0) —  —  
Balance, March 31, 2019119,848,135  $0.1  20  $—  $2,722.5  $419.1  $(22.2) 6,303,932  $(161.8) $489.1  $3,446.8  

See notes to condensed consolidated financial statements.
10

PBF ENERGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Three Months Ended March 31,
20202019
Cash flows from operating activities:
Net income (loss)$(1,062.5) $241.4  
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization123.0  108.6  
Stock-based compensation9.6  8.0  
Change in fair value of catalyst obligations(11.7) 3.1  
Deferred income taxes(374.8) 78.5  
Change in Tax Receivable Agreement liability11.6  —  
Non-cash change in inventory repurchase obligations(67.9) 14.2  
Non-cash lower of cost or market inventory adjustment1,285.6  (506.0) 
Change in fair value of contingent consideration(52.8) —  
Debt extinguishment costs22.2  —  
Pension and other post-retirement benefit costs13.1  11.2  
Changes in operating assets and liabilities:
Accounts receivable396.0  (151.2) 
Inventories74.3  (194.7) 
Prepaid and other current assets(46.6) (69.5) 
Accounts payable(199.9) 46.1  
Accrued expenses(361.4) 224.5  
Deferred revenue16.5  46.4  
Other assets and liabilities(10.1) (10.5) 
Net cash used in operating activities$(235.8) $(149.9) 
Cash flows from investing activities:
Expenditures for property, plant and equipment(65.3) (105.4) 
Expenditures for deferred turnaround costs(69.1) (133.0) 
Expenditures for other assets(4.6) (22.2) 
Acquisition of Martinez Refinery(1,176.2) —  
Net cash used in investing activities$(1,315.2) $(260.6) 

See notes to condensed consolidated financial statements.
11

PBF ENERGY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(unaudited, in millions)
Three Months Ended March 31,
20202019
Cash flows from financing activities:
Distributions to PBF Energy Company LLC members other than PBF Energy$(0.4) $(0.4) 
Distributions to PBFX public unitholders(16.7) (12.8) 
Dividend payments(35.9) (35.9) 
Proceeds from 2028 6.00% Senior Notes1,000.0  —  
Redemption of 2023 7.00% Senior Notes(517.5) —  
Proceeds from revolver borrowings1,150.0  575.0  
Repayments of revolver borrowings(250.0) (325.0) 
Proceeds from PBFX revolver borrowings100.0  16.0  
Repayments of PBFX revolver borrowings—  (12.0) 
Repayments of PBF Rail Term Loan(1.8) (1.7) 
Proceeds from insurance premium financing45.3  30.2  
Payments on finance leases(2.6) —  
Taxes paid for net settlement of stock-based compensation(0.9) (1.0) 
Proceeds from stock options exercised0.2  0.1  
Purchase of treasury stock—  (1.0) 
Deferred financing costs and other(11.5) —  
Net cash provided by financing activities$1,458.2  $231.5  
Net decrease in cash and cash equivalents(92.8) (179.0) 
Cash and cash equivalents, beginning of period814.9  597.3  
Cash and cash equivalents, end of period$722.1  $418.3  
Supplemental cash flow disclosures
Non-cash activities:
Accrued and unpaid capital expenditures$125.7  $119.3  
Assets acquired under operating leases47.6  267.0  
Assets acquired under finance leases63.5  —  
Fair value of the Martinez Contingent Consideration at acquisition77.3  —  
Cash paid during the period for:
Interest (net of capitalized interest of $3.4 million and $4.3 million in 2020 and 2019, respectively)$16.5  $5.9  
Income taxes0.1  —  

See notes to condensed consolidated financial statements.
12

PBF ENERGY COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands,millions, except unit and per unit data)
March 31,
2020		December 31,
2019
ASSETS
Current assets:
Cash and cash equivalents (PBFX: $116.0 and $35.0, respectively)$721.8  $813.7  
Accounts receivable439.1  834.0  
Inventories986.5  2,122.2  
Assets held for sale58.4  —  
Prepaid and other current assets103.6  51.6  
Total current assets2,309.4  3,821.5  
Property, plant and equipment, net (PBFX: $850.0 and $854.6, respectively)4,995.3  4,023.2  
Operating lease right of use assets330.5  306.4  
Financing lease right of use assets84.9  24.2  
Deferred charges and other assets, net1,088.3  953.8  
Total assets$8,808.4  $9,129.1  
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable$436.7  $601.4  
Accrued expenses1,527.0  1,846.2  
Deferred revenue36.7  20.1  
Current operating lease liabilities79.5  72.1  
Total current liabilities2,079.9  2,539.8  
Long-term debt (PBFX: $902.5 and $802.1, respectively)3,546.1  2,064.9  
Affiliate note payable377.5  376.4  
Deferred tax liabilities45.6  31.4  
Long-term operating lease liabilities249.4  233.1  
Long-term financing lease liabilities73.2  18.4  
Other long-term liabilities310.1  250.9  
Total liabilities6,681.8  5,514.9  
Commitments and contingencies (Note 9)
Series B Units, 1,000,000 issued and outstanding, no par or stated value5.1  5.1  
PBF Energy Company LLC equity:
Series A Units, 1,019,916 and 1,215,317 issued and outstanding at March 31, 2020 and December 31, 2019, no par or stated value18.0  20.0  
Series C Units, 120,007,835 and 119,826,202 issued and outstanding at March 31, 2020 and December 31, 2019, no par or stated value2,197.3  2,189.4  
Treasury stock, at cost(165.7) (165.7) 
Retained earnings (Accumulated deficit)(354.1) 1,142.4  
Accumulated other comprehensive loss(8.9) (9.7) 
Total PBF Energy Company LLC equity1,686.6  3,176.4  
Noncontrolling interest434.9  432.7  
Total equity2,121.5  3,609.1  
Total liabilities, Series B units and equity$8,808.4  $9,129.1  
 September 30,
2015		 December 31,
2014
ASSETS   
Current assets:   
Cash and cash equivalents$471,582
 $367,780
Accounts receivable395,624
 551,269
Inventories1,101,182
 1,102,261
Prepaid expense and other current assets71,398
 32,452
Total current assets2,039,786
 2,053,762
    
Property, plant and equipment, net1,960,149
 1,936,839
Marketable securities234,249
 234,930
Deferred charges and other assets, net311,420
 332,669
Total assets$4,545,604
 $4,558,200
    
LIABILITIES AND EQUITY   
Current liabilities:   
Accounts payable$212,772
 $335,268
Accrued expenses908,498
 1,130,905
Deferred revenue4,174
 1,227
Total current liabilities1,125,444
 1,467,400
    
Delaware Economic Development Authority loan8,000
 8,000
Long-term debt1,373,122
 1,252,349
Intercompany note payable134,358
 109,754
Other long-term liabilities63,119
 62,750
Total liabilities2,704,043
 2,900,253
    
Commitments and contingencies (Note 9)
 
    
Series B Units, 1,000,000 issued and outstanding, no par or stated value5,110
 5,110
    
Equity:   
Series A Units, 5,111,358 and 9,170,696 issued and outstanding, as of September 30, 2015 and December 31, 2014, no par or stated value50,847
 91,179
Series C Units, 85,893,850 and 81,981,119 issued and outstanding, as of September 30, 2015 and December 31, 2014, no par or stated value922,588
 865,954
Treasury units, at cost(150,804) (142,731)
Retained earnings/(Accumulated deficit)702,448
 528,942
Accumulated other comprehensive loss(25,561) (26,876)
Total PBF Energy Company LLC equity1,499,518
 1,316,468
Noncontrolling interest in PBFX336,933
 336,369
Total equity1,836,451
 1,652,837
Total liabilities, Series B units and equity$4,545,604
 $4,558,200


See notes to condensed consolidated financial statements.
513



PBF ENERGY COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands)millions)
Three Months Ended March 31,
20202019
Revenues$5,277.5  $5,216.2  
Cost and expenses:
Cost of products and other5,963.3  4,209.2  
Operating expenses (excluding depreciation and amortization expense as reflected below)531.7  479.0  
Depreciation and amortization expense116.7  103.0  
Cost of sales6,611.7  4,791.2  
General and administrative expenses (excluding depreciation and amortization expense as reflected below)82.5  57.3  
Depreciation and amortization expense2.9  2.8  
Change in fair value of contingent consideration(52.8) —  
Total cost and expenses6,644.3  4,851.3  
Income (loss) from operations(1,366.8) 364.9  
Other income (expense):
Interest expense, net(51.7) (41.5) 
Change in fair value of catalyst obligations11.7  (3.1) 
Debt extinguishment costs(22.2) —  
Other non-service components of net periodic benefit cost1.0  (0.1) 
Income (loss) before income taxes(1,428.0) 320.2  
Income tax expense (benefit)14.2  (7.2) 
Net income (loss)(1,442.2) 327.4  
Less: net income attributable to noncontrolling interests18.0  9.0  
Net income (loss) attributable to PBF Energy Company LLC$(1,460.2) $318.4  

 Three Months Ended 
 September 30,		 Nine Months Ended 
 September 30,
 2015 2014 2015 2014
Revenues$3,217,640
 $5,260,003
 $9,763,440
 $15,308,155

       
Cost and expenses:       
Cost of sales, excluding depreciation2,822,444
 4,670,908
 8,319,404
 13,754,048
Operating expenses, excluding depreciation203,860
 202,625
 635,948
 682,246
General and administrative expenses50,808
 37,307
 125,431
 106,947
(Gain) loss on sale of assets(142) 18
 (1,133) (162)
Depreciation and amortization expense48,133
 68,010
 144,401
 135,887
 3,125,103
 4,978,868
 9,224,051
 14,678,966
        
Income from operations92,537
 281,135
 539,389
 629,189
        
Other income (expenses):       
Change in fair value of catalyst leases4,994
 5,543
 8,982
 1,204
Interest expense, net(29,360) (24,855) (80,183) (76,728)
Net income68,171
 261,823
 468,188
 553,665
Less: net income attributable to noncontrolling interests9,381
 4,637
 26,608
 7,328
Net income attributable to PBF Energy Company LLC$58,790
 $257,186
 $441,580
 $546,337




See notes to condensed consolidated financial statements.
614



PBF ENERGY COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited, in thousands)millions)


Three Months Ended March 31,
20202019
Net income (loss)$(1,442.2) $327.4  
Other comprehensive income:
Unrealized gain on available for sale securities0.6  —  
Net gain on pension and other post-retirement benefits0.2  0.2  
Total other comprehensive income0.8  0.2  
Comprehensive income (loss)(1,441.4) 327.6  
Less: comprehensive income attributable to noncontrolling interests18.0  9.0  
Comprehensive income (loss) attributable to PBF Energy Company LLC$(1,459.4) $318.6  
 Three Months Ended 
 September 30,		 Nine Months Ended 
 September 30,
 2015 2014 2015 2014
Net income$68,171
 $261,823
 $468,188
 $553,665
Other comprehensive income:    
 
Unrealized (loss) gain on available for sale securities119
 (160) 115
 (75)
Net gain on pension and other postretirement benefits400
 242
 1,200
 691
Total other comprehensive income519
 82
 1,315
 616
Comprehensive income68,690
 261,905
 469,503
 554,281
Less: comprehensive income attributable to noncontrolling interests9,381
 4,637
 26,608
 7,328
Comprehensive income attributable to PBF Energy Company LLC$59,309
 $257,268
 $442,895
 $546,953


See notes to condensed consolidated financial statements.
715



PBF ENERGY COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(unaudited, in millions, except unit data)
Series ASeries CAccumulated
Other
Comprehensive Income (Loss)		Retained
Earnings (Accumulated Deficit)		Noncontrolling
Interest		Treasury StockTotal Member’s
Equity
UnitsAmountUnitsAmount
Balance, December 31, 20191,215,317  $20.0  119,826,202  $2,189.4  $(9.7) $1,142.4  $432.7  $(165.7) $3,609.1  
Comprehensive Income (loss)—  —  —  —  0.8  (1,460.2) 18.0  —  (1,441.4) 
Exercise of Series A warrants and options, net7,876  (0.1) 7,500  (0.8) —  —  —  —  (0.9) 
Exchange of Series A units for PBF Energy Class A common stock(203,277) (1.9) 203,277  1.9  —  —  —  —  —  
Distribution to members—  —  —  —  —  (36.3) (17.1) —  (53.4) 
Stock-based compensation—  —  1,861  6.8  —  —  1.3  —  8.1  
Treasury stock purchases—  —  (31,005) —  —  —  —  —  —  
Balance, March 31, 20201,019,916  $18.0  120,007,835  $2,197.3  $(8.9) $(354.1) $434.9  $(165.7) $2,121.5  
Balance, December 31, 20181,206,325  $20.2  119,895,422  $2,009.8  $(23.9) $914.3  $459.8  $(160.8) $3,219.4  
Comprehensive Income—  —  —  —  0.2  318.4  9.0  —  327.6  
Exercise of Series A warrants and options, net—  —  5,025  (0.9) —  —  —  —  (0.9) 
Distribution to members—  —  —  —  —  (36.4) (13.2) —  (49.6) 
Issuance of additional PBFX common units—  —  —  82.4  —  —  (82.4) —  —  
Stock-based compensation—  —  (1,410) 6.2  —  —  1.0  —  7.2  
Treasury stock purchases—  —  (29,671) 1.0  —  —  —  (1.0) —  
Balance, March 31, 20191,206,325  $20.2  119,869,366  $2,098.5  $(23.7) $1,196.3  $374.2  $(161.8) $3,503.7  

See notes to condensed consolidated financial statements.
16

PBF ENERGY COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
millions)
Nine Months Ended 
 September 30,		Three Months Ended March 31,
2015 201420202019
Cash flows from operating activities:   Cash flows from operating activities:
Net income$468,188
 $553,665
Adjustments to reconcile net income to net cash provided by (used in) operations:   
Net income (loss)Net income (loss)$(1,442.2) $327.4  
Adjustments to reconcile net income to net cash (used in) provided by operating activities:Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization151,509
 141,547
Depreciation and amortization123.0  108.6  
Stock-based compensation8,757
 5,377
Stock-based compensation9.6  8.0  
Change in fair value of catalyst lease obligations(8,982) (1,204)
Change in fair value of catalyst obligationsChange in fair value of catalyst obligations(11.7) 3.1  
Deferred income taxesDeferred income taxes14.2  (7.2) 
Non-cash change in inventory repurchase obligations53,370
 (31,602)Non-cash change in inventory repurchase obligations(67.9) 14.2  
Pension and other post retirement benefit costs19,340
 16,462
Gain on disposition of property, plant and equipment(1,133) (162)
Change in non-cash lower of cost or market adjustment81,147
 —
Non-cash lower of cost or market inventory adjustmentNon-cash lower of cost or market inventory adjustment1,285.6  (506.0) 
Change in fair value of contingent considerationChange in fair value of contingent consideration(52.8) —  
Debt extinguishment costsDebt extinguishment costs22.2  —  
Pension and other post-retirement benefit costsPension and other post-retirement benefit costs13.1  11.2  
   
Changes in current assets and current liabilities:   
Changes in operating assets and liabilities:Changes in operating assets and liabilities:
Accounts receivable155,645
 (101,752)Accounts receivable394.9  (151.2) 
Inventories(110,830) (378,538)Inventories74.3  (194.7) 
Prepaid expenses and other current assets(38,946) 25,104
Prepaid and other current assetsPrepaid and other current assets(46.6) (70.0) 
Accounts payable(122,496) (76,008)Accounts payable(200.2) 46.1  
Accrued expenses(331,617) 269,687
Accrued expenses(357.7) 225.2  
Deferred revenue2,947
 (6,017)Deferred revenue16.5  46.4  
Other assets and liabilities(21,959) (15,616)Other assets and liabilities(10.1) (10.5) 
Net cash provided by operations304,940
 400,943
Net cash used in operating activitiesNet cash used in operating activities$(235.8) $(149.4) 
   
Cash flow from investing activities:   
Cash flows from investing activities:Cash flows from investing activities:
Expenditures for property, plant and equipment(288,909) (258,875)Expenditures for property, plant and equipment(65.3) (105.4) 
Expenditures for deferred turnaround costs(39,725) (58,423)Expenditures for deferred turnaround costs(69.1) (133.0) 
Expenditures for other assets(7,275) (13,446)Expenditures for other assets(4.6) (22.2) 
Purchase of marketable securities(1,609,286) (1,188,906)
Maturities of marketable securities1,609,983
 923,996
Proceeds from sale of assets168,270
 74,343
Acquisition of Martinez RefineryAcquisition of Martinez Refinery(1,176.2) —  
Net cash used in investing activities(166,942) (521,311)Net cash used in investing activities$(1,315.2) $(260.6) 


See notes to condensed consolidated financial statements.
817



PBF ENERGY COMPANY LLC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)(continued)
(unaudited, in thousands)
millions)
 Nine Months Ended 
 September 30,
 2015 2014
Cash flows from financing activities:   
Proceeds from issuance of PBFX common units, net of underwriters' discount and commissions$—
 $340,957
Offering costs for issuance of PBFX common units—
 (5,000)
Distributions to PBFX unit holders$(17,082) $(2,573)
Dividend and distributions payments(152,838) (283,680)
Proceeds from PBFX Senior Notes350,000
 —
Proceeds from PBFX revolver borrowings24,500
 140,100
Repayments of PBFX revolver borrowings(275,100) —
Proceeds from PBFX Term Loan borrowings—
 300,000
Repayments of PBFX Term Loan borrowings(700) (35,100)
Proceeds from intercompany loan from PBF Energy Inc.71,904
 91,660
Repayment of intercompany loan from PBF Energy Inc.(47,300) —
Proceeds from Rail Facility revolver borrowings102,075
 35,925
Repayments of Rail Facility revolver borrowings(71,938) —
Proceeds from revolver borrowings—
 395,000
Repayments of revolver borrowings—
 (410,000)
Purchases of treasury stock(8,073) (32,593)
Deferred financing costs and other(9,644) (13,905)
Net cash (used in) provided by financing activities(34,196) 520,791
    
Net increase in cash and cash equivalents103,802
 400,423
Cash and equivalents, beginning of period367,780
 76,970
Cash and equivalents, end of period$471,582
 $477,393
    
Supplemental cash flow disclosures   
Non-cash activities:   
Conversion of Delaware Economic Development Authority loan to grant$—
 $4,000
Accrued distributions$115,228
 $—
Accrued construction in progress and unpaid fixed assets$4,670
 $65,193
Three Months Ended March 31,
20202019
Cash flows from financing activities:
Distributions to PBF Energy Company LLC members$(36.3) $(36.3) 
Distributions to PBFX public unitholders(16.7) (12.8) 
Proceeds from 2028 6.00% Senior Notes1,000.0  —  
Redemption of 2023 7.00% Senior Notes(517.5) —  
Proceeds from revolver borrowings1,150.0  575.0  
Repayments of revolver borrowings(250.0) (325.0) 
Proceeds from PBFX revolver borrowings100.0  16.0  
Repayments of PBFX revolver borrowings—  (12.0) 
Repayments of PBF Rail Term Loan(1.8) (1.7) 
Proceeds from insurance premium financing45.3  30.2  
Payments on finance leases(2.6) —  
Affiliate note payable with PBF Energy Inc.1.1  (0.1) 
Taxes paid for net settlement of stock-based compensation—  (1.0) 
Repurchase of treasury stock—  (1.0) 
Deferred financing costs and other(12.4) —  
Net cash provided by financing activities1,459.1  231.3  
Net decrease in cash and cash equivalents(91.9) (178.7) 
Cash and cash equivalents, beginning of period813.7  596.0  
Cash and cash equivalents, end of period$721.8  $417.3  
Supplemental cash flow disclosures
Non-cash activities:
Accrued and unpaid capital expenditures$125.7  $119.3  
Assets acquired under operating leases47.6  267.0  
Assets acquired under finance leases63.5  —  
Fair value of the Martinez Contingent Consideration at acquisition77.3  —  
Cash paid during the period for:
Interest (net of capitalized interest of $3.4 million and $4.3 million in 2020 and 2019, respectively)$16.5  $5.9  



See notes to condensed consolidated financial statements.
918
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION
Description of the Business
PBF Energy Inc. (“PBF Energy”) was formed as a Delaware corporation on November 7, 2011 and is the sole managing member of PBF Energy Company LLC ("(“PBF LLC" or the "Company"LLC”), a Delaware limited liability company, with a controlling interest in PBF LLC and its subsidiaries. PBF Energy consolidates the financial results of PBF LLC and its subsidiaries and records a noncontrolling interest in its Condensed Consolidated Financial Statements representing the economic interests of PBF LLC’s members other than PBF Energy (refer to “Note 11 - Equity”).
PBF Energy holds a 99.2% economic interest in PBF LLC as of March 31, 2020 through its ownership of PBF LLC Series C Units, which are held solely by PBF Energy. Holders of PBF LLC Series A Units, which are held by parties other than PBF Energy (“the members of PBF LLC other than PBF Energy”), hold the remaining 0.8% economic interest in PBF LLC. The PBF LLC Series C Units rank on parity with the PBF LLC Series A Units as to distribution rights, voting rights and rights upon liquidation, winding up or dissolution. In addition, the amended and restated limited liability company agreement of PBF LLC provides that any PBF LLC Series A Units acquired by PBF Energy will automatically be reclassified as PBF LLC Series C Units in connection with such acquisition. As of March 31, 2020, PBF Energy held 120,007,835 PBF LLC Series C Units and the members of PBF LLC other than PBF Energy held 1,019,916 PBF LLC Series A Units.
PBF LLC, together with its consolidated subsidiaries, owns and operates oil refineries and related facilities in North America. PBF Energy Inc. ("PBF Energy") is the sole managing member of, and owner and of an equity interest representing approximately 94.4% of the outstanding economic interest in, PBF LLC as of September 30, 2015, with the remaining economic interests were held by the members of PBF LLC, other than PBF Energy. PBF Holding Company LLC ("(“PBF Holding"Holding”) is a wholly-owned subsidiary of PBF LLC. PBF Investments LLC, Toledo Refining Company LLC, Paulsboro Refining Company LLC, Delaware City Refining Company LLC, ("Delaware City Refining" or "DCR"Chalmette Refining, L.L.C. (“Chalmette Refining”), Delaware Pipeline Company LLC, PBF Power Marketing LLC, PBF Energy Limited, PaulsboroWestern Region LLC, Torrance Refining Company LLC, Paulsboro Natural Gas PipelineTorrance Logistics Company LLC and ToledoMartinez Refining Company LLC are PBF LLC’s principal operating subsidiaries and are all wholly-owned subsidiaries of PBF Holding. AsDiscussions or areas of September 30, 2015, PBF LLC also holds a 53.7% limited partner interest and all of the incentive distribution rights in PBF Logistics LP ("PBFX" or the "Partnership"), a publicly traded master limited partnership (refer to Note 2 "PBF Logistics LP" of our Notes to Condensed Consolidated Financial Statements)Statements that either apply only to PBF Energy or PBF LLC are clearly noted in such footnotes.
As of March 31, 2020, PBF LLC also held a 48.2% limited partner interest in PBF Logistics LP (“PBFX”), a publicly-traded master limited partnership (“MLP”) (refer to “Note 2 - PBF Logistics LP”). PBF Logistics GP LLC (“PBF GP”) owns the noneconomic general partner interest and serves as the general partner of PBFX and is wholly-owned by PBF LLC. PBF Energy, through its ownership of PBF LLC, consolidates the financial results of PBFX and its subsidiaries and records a noncontrolling interest in its consolidated financial statements representing the economic interests of PBFX’s unitholders other than PBF LLC (refer to “Note 11 - Equity”). Collectively, PBF LLCEnergy and its consolidated subsidiaries, including PBF LLC, PBF Holding, PBF GP and PBFX are referred to hereinafter as the "Company"“Company” unless the context otherwise requires.
On February 6, 2015, PBF Energy completed a public offering of 3,804,653 shares of Class A common stock in a secondary offering (the "February 2015 secondary offering"). All of the shares in the February 2015 secondary offering were sold by funds affiliated with Blackstone Group L.P., or Blackstone, and First Reserve Management, L.P., or First Reserve. In connection with the February 2015 secondary offering, Blackstone and First Reserve exchanged all of their remaining PBF LLC Series A Units for an equivalent number of shares of Class A common stock of PBF Energy, and as a result, Blackstone and First Reserve no longer hold any PBF LLC Series A Units or shares of PBF Energy Class A Common stock. The holders of PBF LLC Series B Units, which include certain executive officers of PBF Energy and others, received a portion of the proceeds of the sale of the PBF Energy Class A common stock by Blackstone and First Reserve in accordance with the amended and restated limited liability company agreement of PBF LLC. PBF Energy did not receive any proceeds from the February 2015 secondary offering. As of September 30, 2015, PBF Energy owns 85,893,850 PBF LLC Series C Units and PBF Energy's executive officers and directors and certain employees and others beneficially own 5,111,358 PBF LLC Series A Units. As of September 30, 2015, the holders of PBF Energy's issued and outstanding shares of Class A common stock have 94.4% of the voting power in PBF Energy and the members of PBF LLC, other than PBF Energy, through their holdings of Class B common stock have the remaining 5.6% of the voting power in PBF Energy.
Substantially all of the Company’s operations are in the United States. The Company operates in two2 reportable business segments: Refining and Logistics. The Company’s three oil refineries are all engaged in the refining of crude oil and other feedstocks into petroleum products, and are aggregated into the Refining segment. PBFX is a publicly traded master limited partnershipMLP that was formed to operate logisticallogistics assets such as crude oil and refined petroleum products terminals, pipelines and storage facilities. PBFX's operations are aggregated into theThe Logistics segment.segment consists solely of PBFX’s operations. 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 that are largely out of the Company’s control can cause prices to vary over time. The resulting potential margin volatility can have a material effect on the Company’s financial position, earnings and cash flow.    flows.


1019
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

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 statementsCondensed Consolidated Financial Statements of the Company have been prepared in accordance with U.S.accounting principles generally accepted accounting principles ("GAAP"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 statementsCondensed Consolidated Financial Statements should be read in conjunction with the audited consolidatedPBF Energy and PBF LLC financial statements included in the prospectus dated October 30, 2015, as filed withAnnual Report on Form 10-K for the SEC on October 30, 2015 (the “Prospectus”).year ended December 31, 2019. The results of operations for the three and nine months ended September 30, 2015March 31, 2020 are not necessarily indicative of the results to be expected for the full year.

Reclassification
RecentAs of March 31, 2020, Financing lease right-of-use assets and liabilities, previously included in Deferred charges and other assets, net and Other long term liabilities, respectively, in the Condensed Consolidated Balance Sheets, are disclosed as separate line items in the Condensed Consolidated Financial Statements. Certain of these amounts previously reported in the Company's Condensed Consolidated Financial Statements and those respective footnotes for prior periods have been reclassified to conform to the 2020 presentation.
Interim Impairment Assessment
The global crisis resulting from the spread of the recent novel coronavirus (“COVID-19”) has had a substantial impact on the economy and overall consumer demand for energy and hydrocarbon products. As a result of the significant decrease in PBF Energy’s stock price as of the end of the quarter and noticeable reduction in demand for the Company’s products, the Company determined an impairment triggering event had occurred. As such, the Company performed an interim impairment assessment on certain long-lived assets as of March 31, 2020. As a result of the interim impairment test, the Company concluded that the carrying values of its long-lived assets were not impaired when comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from use of the assets over their remaining estimated useful life.

Recently Adopted Accounting Pronouncements
In April 2015,June 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses” (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance amends the guidance on measuring credit losses on financial assets held at amortized cost. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this ASU effective January 1, 2020. The adoption of this ASU does not currently impact the Company’s Condensed Consolidated Financial Statements. Refer to “Note 4 - Current Expected Credit Losses” for further disclosure related to our adoption of this pronouncement.
20
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Recently Issued Accounting Pronouncements
In March 2020, the FASB issued ASU No. 2015-03, "Interest - Imputation2020-04, Reference Rate Reform (Topic 848): Facilitation of Interest (Subtopic 835-30): Simplifying the Presentationeffects of Debt Issuance Costs" ("reference rate reform on financial reporting. The amendments in this ASU 2015-03"), which requires debt issuance costs relatedprovide optional guidance for a limited period of time to a recognized debt liabilityease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this ASU are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference London Interbank Offering Rate (“LIBOR”) or another reference rate expected to be presented ondiscontinued because of reference rate reform. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the balance sheetamendments for contract modifications by topic or industry subtopic as a direct deductionof any date from the debt liability rather than asbeginning of an asset. The standardinterim period that includes or is effective forsubsequent to March 12, 2020, or prospectively from a date within an interim and annual periods beginning after December 15, 2015 and early adoptionperiod that includes or is permitted.subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. The Company is currently evaluating the impact of this new standard on its consolidated financial statementsCondensed Consolidated Financial Statements and related disclosures.
In August 2015,December 2019, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers2019-12, Income Taxes (Topic 606): Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date of ASU 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”) for all entities by one year. The guidance in ASU 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. Under ASU 2015-14, this guidance becomes effective for interim and annual periods beginning after December 15, 2017 and permits the use of either the retrospective or cumulative effect transition method. Under ASU 2015-14, early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company continues to evaluate the impact of this new standard on its consolidated financial statements and related disclosures.
In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805)740): Simplifying the Accounting for Measurement-Period Adjustments" ("ASU 2015-16"), which requires (i) that an acquirer recognize adjustmentsIncome Taxes, as part of its overall simplification initiative to provisional amounts that are identified duringreduce costs and complexity of applying accounting standards while maintaining or improving the measurement period in the reporting period in which the adjustment amounts are determined, (ii) that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a resultusefulness of the changeinformation provided to users of financial statements. Amendments include removal of certain exceptions to the provisional amounts, calculated as if the accounting had been completed at the acquisition date, (iii)that an entity present separately on the facegeneral principles of the income statement or discloseASC 740, Income taxes, and simplification in the notes the portion of the amount recordedseveral other areas. The amendments in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Underthis ASU 2015-16, this guidance becomesare effective for annual periods beginningfiscal years ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2017 with prospective application with early2020, for public business entities. Early adoption permitted.is permitted for all entities. The Company is currently evaluating the impact of this new standard on its consolidated financial statementsCondensed Consolidated Financial Statements and related disclosures.

2. PBF LOGISTICS LPIn August 2018, the FASB issued ASU No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)”, to improve the effectiveness of benefit plan disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. The amendments in this ASU modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Additionally, the amendments in this ASU remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. The amendments in this ASU are effective for fiscal years ending after December 15, 2020, for public business entities and early adoption is permitted for all entities. The Company is currently evaluating the impact of this new standard on its Condensed Consolidated Financial Statements and related disclosures.
On May 14, 2014, PBFX completed its initial public offering (the “PBFX Offering”) of 15,812,500 common units. As of September 30, 2015, PBF LLC holds a 53.7% limited partner interest in PBFX (consisting of 2,572,944 common units and 15,886,553 subordinated units) and all of PBFX's incentive distribution rights, with the remaining 46.3% limited partner interest held by public common unit holders. PBF LLC also owns indirectly a non-economic general partner interest in PBFX through its wholly-owned subsidiary, PBF GP, the general partner of PBFX.

11
21
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

During the subordination period (as set forth in the partnership agreement of PBFX) holders of the subordinated units are not entitled2. PBF LOGISTICS LP
PBFX is a fee-based, growth-oriented, publicly traded Delaware MLP formed by PBF Energy to receive any distribution of available cash until the common units have received the minimum quarterly distribution plus any arrearages in the payment of the minimum quarterly distribution from prior quarters. If PBFX does not pay distributions on the subordinated units, the subordinated units will not accrue arrearages for those unpaid distributions. Each subordinated unit will convert into one common unit at the end of the subordination period.
own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. PBFX engages in the processing of crude oil and the receiving, handling, storage and transferring of crude oil, and the receipt, storage and delivery of crude oil, refined products, natural gas and intermediates. Allintermediates from sources located throughout the United States and Canada for PBF Energy in support of its refineries, as well as for third party customers. As of March 31, 2020, a substantial majority of PBFX’s revenue isrevenues are derived from long-term, fee-based commercial agreements with PBF Holding, which include minimum volume commitments for receiving, handling, storing and transferring crude oil, and refined products and storing crude oil and refined products.natural gas. PBF LLCEnergy also has agreements with PBFX that establish fees for certain general and administrative services and operational and maintenance services provided by PBF Holding to PBFX. These transactions, other than those with third parties, are eliminated by PBF Energy and PBF LLC in consolidation.
PBFX’s initial assets consisted of a light crude oil rail unloading terminal at the Delaware City refinery that also services the Paulsboro refinery (which is referred to as the “Delaware City Rail Terminal”), and a crude oil truck unloading terminal at the Toledo refinery (which is referred to as the “Toledo Truck Terminal”) that are integral components of the crude oil delivery operations at all three of PBF Energy’s refineries. On September 30, 2014, PBF LLC contributed to PBFX all of the equity interests of Delaware City Terminaling Company II LLC, which assets consist solely of the Delaware City heavy crude unloading rack (the "DCR West Rack"), for total consideration of $150,000. On December 11, 2014, PBF LLC contributed to PBFX all of the issued and outstanding limited liability company interests of Toledo Terminaling Company LLC, whose assets consist of a tank farm and related facilities located at our Toledo refinery, including a propane storage and loading facility (the "Toledo Storage Facility"), for total consideration of $150,000. On May 14, 2015 PBF LLC contributed to PBFX all of the issued and outstanding limited liability company interests of Delaware Pipeline Company LLC ("DPC") and Delaware City Logistics Company LLC ("DCLC"), whose assets consist of a products pipeline, truck rack and related facilities located at our Delaware City refinery (collectively the "Delaware City Products Pipeline and Truck Rack"), for total consideration of $143,000.
PBFX, a variable interest entity, is consolidated by PBF Energy through its ownership of PBF LLC. PBF LLC, through its ownership of PBF GP, has the sole ability to direct the activities of PBFX that most significantly impact its economic performance. PBF LLC is considered to be the primary beneficiary of PBFX for accounting purposes.

3. NONCONTROLLING INTEREST OF PBF ENERGY AND PBFX

Noncontrolling Interest in PBFX
As of March 31, 2020, PBF LLC holdsheld a 53.7%48.2% limited partner interest in PBFX and owns all(consisting of PBFX’s incentive distribution rights,29,953,631 common units) with the remaining 46.3%51.8% limited partner interest ownedheld by the public common unit holders as of September 30, 2015.unitholders. PBF LLC is also the sole member ofindirectly owns a non-economic general partner interest in PBFX through its wholly-owned subsidiary, PBF GP, the general partner of PBFX.
On February 28, 2019, PBFX closed on the transaction contemplated by the Equity Restructuring Agreement with PBF LLC consolidates the financial results of PBFX, and records a noncontrolling interest for the economic interest in PBFXPBF GP, pursuant to which PBFX’s incentive distribution rights (the “IDRs”) held by the publicPBF LLC were canceled and converted into 10,000,000 newly issued PBFX common unit holders. Noncontrolling interest on the consolidated statements of operations includes the portion of net income or loss attributableunits (the “IDR Restructuring”). Subsequent to the economic interest in PBFX held byclosing of the public common unit holders of PBFX other thanIDR Restructuring, no distributions were made to PBF LLC. Noncontrolling interest on the consolidated balance sheets includes the portion of net assets of PBFX attributableLLC with respect to the publicIDRs and the newly issued PBFX common unit holders ofunits are entitled to normal distributions by PBFX.
The noncontrolling interest ownership percentage of PBFX as of September 30, 2015 and December 31, 2014, is calculated as follows:

1222
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)



Units of PBFX Held by the Public
Units of PBFX Held by PBF LLC (Including Subordinated Units)
Total
December 31, 201415,812,500
 17,171,077
 32,983,577

47.9% 52.1% 100.0%
September 30, 201515,893,313
 18,459,497
 34,352,810
 46.3% 53.7% 100.0%
3. ACQUISITIONS
Martinez Acquisition
On February 1, 2020, the Company acquired from Equilon Enterprises LLC d/b/a Shell Oil Products US (the "Seller"), the Martinez refinery and related logistics assets (collectively, the "Martinez Acquisition"), pursuant to a sale and purchase agreement dated June 11, 2019 (the “Sale and Purchase Agreement”). The following table summarizesMartinez refinery, located in Martinez, California, is a high-conversion, dual-coking facility that is strategically positioned in Northern California and provides for operating and commercial synergies with the changesTorrance refinery located in equitySouthern California.
In addition to refining assets, the Martinez Acquisition includes a number of onsite logistics assets, including a deep-water marine facility, product distribution terminals and refinery crude and product storage facilities.
The aggregate purchase price for the controllingMartinez Acquisition was $1,253.4 million, including final working capital of $216.1 million and noncontrolling intereststhe Martinez Contingent Consideration, as defined below. The transaction was financed through a combination of cash on hand, including proceeds from the 2028 Senior Notes (as defined in “Note 7 - Debt”), and borrowings under PBF LLCHolding’s asset-based revolving credit agreement (the “Revolving Credit Facility”).
The Company accounted for the nine months ended September 30, 2015Martinez Acquisition as a business combination under GAAP whereby it recognizes assets acquired and 2014:liabilities assumed in an acquisition at their estimated fair values as of the date of acquisition. The purchase price and fair value allocation may be subject to adjustment pending completion of the final purchase valuation, which was in process as of March 31, 2020.
The total purchase consideration and the fair values of the assets and liabilities at the acquisition date, which may be subject to adjustments as noted above, were as follows:
(in millions)Purchase Price
Gross purchase price$960.0 
Working capital, including post close adjustments216.1 
Contingent consideration (a)77.3 
Total consideration$1,253.4 

(a) The Martinez Acquisition includes an obligation for the Company to make post-closing earn-out payments to the Seller based on certain earnings thresholds of the Martinez refinery (as set forth in the Sale and Purchase Agreement), for a period of up to four years following the acquisition closing date (the “Martinez Contingent Consideration”). The Company recorded the Martinez Contingent Consideration based on its estimated fair value of $77.3 million at the acquisition date, which was recorded within “Other long-term liabilities” within the Condensed Consolidated Balance Sheets.

23
 PBF Energy Company LLC Equity Noncontrolling
Interest in PBFX		 Total Equity
Balance at January 1, 2015$1,316,468
 $336,369
 $1,652,837
Comprehensive income442,895
 26,608
 469,503
Dividends and distributions(268,066) (17,082) (285,148)
Issuance of additional PBFX common units11,390
 (11,390) —
Stock-based compensation6,329
 2,428
 8,757
Exercise of PBF LLC options and warrants, net and other(1,425) —
 (1,425)
Purchase of treasury stock(8,073) —
 (8,073)
Balance at September 30, 2015$1,499,518
 $336,933
 $1,836,451

 PBF Energy  Company LLC Equity Noncontrolling
Interest in PBFX		 Total Equity
Balance at January 1, 2014$1,779,710
 $—
 $1,779,710
Comprehensive income546,953
 7,328
 554,281
Dividends and distributions(283,680) (2,573) (286,253)
Issuance of additional PBFX common units4,249
 (4,249) —
Stock-based compensation4,724
 653
 5,377
Record noncontrolling interest upon completion of the PBFX Offering—
 335,957
 335,957
Exercise of PBF LLC options and warrants, net and other2,477
 —
 2,477
Purchase of treasury stock(32,593) —
 (32,593)
Balance at September 30, 2014$2,021,840
 $337,116
 $2,358,956


13
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT
The following table summarizes the preliminary amounts recognized for assets acquired and liabilities assumed as of the acquisition date:
(in millions)Fair Value Allocation
Inventories$224.1 
Prepaid and other current assets5.4 
Property, plant and equipment987.9 
Operating lease right of use assets7.8 
Financing lease right of use assets63.5 
Deferred charges and other assets, net63.7 
Accrued expenses(1.4)
Current operating lease liabilities(1.9)
Current financing lease liabilities (a)(6.0)
Long-term operating lease liabilities(5.9)
Long-term financing lease liabilities(57.5)
Other long-term liabilities - Environmental obligation(26.3)
Fair value of net assets acquired$1,253.4 
(a) Current financing lease liabilities are recorded in Accrued expenses within the Condensed Consolidated Balance Sheet.

The Company’s Condensed Consolidated Financial Statements for the three months ended March 31, 2020 include the results of operations of the Martinez refinery and related logistics assets subsequent to the Martinez Acquisition. The same period in 2019 does not include the results of operations of such assets. On an unaudited pro-forma basis, the revenues and net income (loss) of the Company, assuming the acquisition had occurred on January 1, 2019, are shown below. The unaudited pro-forma information does not purport to present what the Company’s actual results would have been had the Martinez Acquisition occurred on January 1, 2019, nor is the financial information indicative of the results of future operations. The unaudited pro-forma financial information includes the depreciation and amortization expense related to the Martinez Acquisition and interest expense associated with the related financing.
Three Months Ended March 31, 2020Three Months Ended March 31, 2019
(Unaudited, in millions)
PBF Energy
Pro-forma revenues$5,641.3  $6,258.8  
Pro-forma net income (loss) attributable to PBF Energy Inc. stockholders(1,096.9) 210.9  
PBF LLC
Pro-forma revenues$5,641.3  $6,258.8  
Pro-forma net income (loss) attributable to PBF LLC(1,491.5) 299.9  
Acquisition Expenses
The Company incurred acquisition-related costs of $11.6 million for the three months ended March 31, 2020 consisting primarily of consulting and legal expenses related to the Martinez Acquisition. The Company incurred acquisition-related costs of $0.1 million for the three months ended March 31, 2019 consisting primarily of consulting and legal expenses related to completed, pending and non-consummated acquisitions. These costs are included in General and administrative expenses within the Condensed Consolidated Statements of Operations.
24
PBF ENERGY INC. AND BARREL DATA)PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


4. CURRENT EXPECTED CREDIT LOSSES

Credit Losses
The Company has exposure to credit losses primarily through its sales of refined products. The Company evaluates creditworthiness on an individual customer basis. The Company utilizes a financial review model for purposes of evaluating creditworthiness which is based on information from financial statements and credit reports. The financial review model enables the Company to assess the customer’s risk profile and determine credit limits on the basis of their financial strength, including but not limited to, their liquidity, leverage, debt serviceability, longevity and how they pay their bills. The Company may require security in the form of letters of credit or cash payments in advance of product delivery for certain customers that are deemed higher risk.
The Company’s payment terms on its trade receivables are relatively short, generally 30 days or less for a substantial majority of its refined products. As a result, the Company’s collection risk is mitigated to a certain extent by the fact that sales are collected in a relatively short period of time, allowing for the ability to reduce exposure on defaults if collection issues are identified. Notwithstanding, the Company reviews each customer’s credit risk profile at least annually or more frequently if warranted. Following the widespread market disruption that has resulted from the COVID-19 pandemic and related governmental responses, the Company has been performing ongoing credit reviews of its customers including monitoring for any negative credit events such as customer bankruptcy or insolvency events. As a result, the Company has adjusted payment terms or limited available trade credit for certain customers, as well as for customers within industries that are deemed to be at higher risk.
The Company performs a quarterly allowance for doubtful accounts analysis to assess whether an allowance needs to be recorded for any outstanding trade receivables. In estimating credit losses, management reviews accounts that are past due, have known disputes or have experienced any negative credit events that may result in future collectability issues. There was 0 allowance for doubtful accounts recorded as of March 31, 2020 and December 31, 2019.
25
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

5. INVENTORIES
Inventories consisted of the following:
March 31, 2020
(in millions)Titled InventoryInventory Intermediation AgreementsTotal
Crude oil and feedstocks$1,158.7  $—  $1,158.7  
Refined products and blendstocks1,109.6  270.8  1,380.4  
Warehouse stock and other134.6  —  134.6  
$2,402.9  $270.8  $2,673.7  
Lower of cost or market adjustment(1,521.5) (165.7) (1,687.2) 
Total inventories  $881.4  $105.1  $986.5  
September 30, 2015
 Titled Inventory Inventory Supply and Intermediation Arrangements Total
Crude oil and feedstocks$954,744
 $21,288
 $976,032
Refined products and blendstocks545,279
 310,238
 855,517
Warehouse stock and other40,890
 —
 40,890
 $1,540,913
 $331,526
 $1,872,439
Lower of cost or market reserve(662,638) (108,619) (771,257)
Total inventories$878,275
 $222,907
 $1,101,182

December 31, 2014
Titled Inventory Inventory Supply and Intermediation Arrangements Total
December 31, 2019December 31, 2019
(in millions)(in millions)Titled InventoryInventory Intermediation AgreementsTotal
Crude oil and feedstocks$918,756
 $61,122
 $979,878
Crude oil and feedstocks$1,071.4  $2.7  $1,074.1  
Refined products and blendstocks520,308
 255,459
 775,767
Refined products and blendstocks976.0  352.9  1,328.9  
Warehouse stock and other36,726
 —
 36,726
Warehouse stock and other120.8  —  120.8  
$1,475,790
 $316,581
 $1,792,371
$2,168.2  $355.6  $2,523.8  
Lower of cost or market reserve(609,774) (80,336) (690,110)
Lower of cost or market adjustmentLower of cost or market adjustment(324.8) (76.8) (401.6) 
Total inventories$866,016
 $236,245
 $1,102,261
Total inventories  $1,843.4  $278.8  $2,122.2  
Inventory under the amended and restated inventory supplyintermediation agreements with J. Aron & Company, a subsidiary of The Goldman Sachs Group, Inc. (“J. Aron”) (as amended and intermediation arrangementsrestated from time to time, the “Inventory Intermediation Agreements”) includes certain crude oil, stored atintermediate and certain finished products (the “J. Aron Products”) purchased or produced by the Company’sPaulsboro and Delaware City refinery's storage facilities that the Company will purchase as it is consumed in connection with its crude supply agreement;refineries (the “East Coast Refineries”), and intermediates and light finished products sold to counterparties in connection with the intermediation agreements and storedsuch agreements. This inventory is held in the Paulsboro and Delaware City refineries'Company’s storage facilities.
Due to the lower crude oil and refined product pricing environmenttanks at the end of 2014East Coast Refineries and intoat PBFX’s assets acquired from Crown Point International, LLC in October 2018 (together with the third quarter of 2015,Company’s storage tanks at the Company recorded adjustments to value its inventories toEast Coast Refineries, the lower of cost or market. “J. Aron Storage Tanks”).
During the three months ended September 30, 2015,March 31, 2020, the Company recorded an adjustment to value its inventories to the lower of cost or market which decreased both operating income and net incomeincreased loss from operations by $208,313$1,285.6 million, reflecting the net change in the lower of cost or market (“LCM”) inventory reserve from $562,944$401.6 million at June 30, 2015December 31, 2019 to $771,257$1,687.2 million at September 30, 2015. March 31, 2020.
During the ninethree months ended September 30, 2015,March 31, 2019, the Company recorded an adjustment to value its inventories to the lower of cost or market which decreased both operatingincreased income and net incomefrom operations by $81,147$506.0 million, reflecting the net change in the lower of cost or marketLCM inventory reserve from $690,110$651.8 million at December 31, 20142018 to $771,257$145.8 million at September 30, 2015.March 31, 2019.



14
26
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

5. DEFERRED CHARGES AND OTHER ASSETS, NET
Deferred charges and other assets, net consisted of the following:
 September 30,
2015		 December 31,
2014
Deferred turnaround costs, net$183,618
 $204,987
Catalyst, net71,516
 77,322
Deferred financing costs, net34,495
 32,280
Linefill10,230
 10,230
Restricted cash1,500
 1,521
Intangible assets, net231
 357
Other9,830
 5,972
Total deferred charges and other assets, net$311,420
 $332,669
6. ACCRUED EXPENSES
Accrued expenses consisted of the following:

September 30,
2015		 December 31,
2014
PBF Energy (in millions)
PBF Energy (in millions)
March 31, 2020December 31, 2019
Inventory-related accruals$407,678
 $588,297
Inventory-related accruals$606.8  $1,103.2  
Inventory supply and intermediation arrangements212,930
 253,549
Accrued distribution115,228
 —
Inventory intermediation agreementsInventory intermediation agreements209.5  278.1  
Excise and sales tax payableExcise and sales tax payable142.4  98.6  
Renewable energy credit and emissions obligationsRenewable energy credit and emissions obligations118.4  17.7  
Accrued transportation costs49,548
 59,959
Accrued transportation costs88.5  88.7  
Accrued capital expendituresAccrued capital expenditures85.1  32.2  
Accrued interestAccrued interest41.1  12.1  
Customer depositsCustomer deposits36.4  1.8  
Accrued utilitiesAccrued utilities28.2  40.1  
Accrued salaries and benefits37,766
 56,117
Accrued salaries and benefits21.7  81.1  
Excise and sales tax payable20,430
 40,444
Accrued interest20,100
 23,127
Accrued utilities9,633
 22,337
Customer deposits8,910
 24,659
Accrued construction in progress4,634
 31,452
Renewable energy credit obligations—
 286
Accrued refinery maintenance and support costsAccrued refinery maintenance and support costs13.5  16.9  
Environmental liabilitiesEnvironmental liabilities13.2  12.8  
Current finance lease liabilitiesCurrent finance lease liabilities12.7  6.5  
Contingent considerationContingent consideration10.5  10.0  
Other21,641
 30,678
Other64.6  15.8  
Total accrued expenses$908,498
 $1,130,905
Total accrued expenses$1,492.6  $1,815.6  
 

PBF LLC (in millions)
March 31, 2020December 31, 2019
Inventory-related accruals$606.8  $1,103.2  
Inventory intermediation agreements209.5  278.1  
Excise and sales tax payable142.4  98.6  
Renewable energy credit and emissions obligations118.4  17.7  
Accrued transportation costs88.5  88.7  
Accrued capital expenditures85.1  32.2  
Accrued interest71.0  39.5  
Customer deposits36.4  1.8  
Accrued utilities28.2  40.1  
Accrued salaries and benefits21.7  81.1  
Accrued refinery maintenance and support costs13.5  16.9  
Environmental liabilities13.2  12.8  
Current finance lease liabilities12.7  6.5  
Contingent consideration10.5  10.0  
Other69.1  19.0  
Total accrued expenses$1,527.0  $1,846.2  
27
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company has the obligation to repurchase certain intermediates and finished productsthe J. Aron Products that are held in the Company’s refinery storage tanks at the Delaware City and Paulsboro refineriesits J. Aron Storage Tanks in accordance with the Inventory Intermediation Agreements with J. Aron & Company,Aron. As of March 31, 2020 and December 31, 2019, a subsidiary of The Goldman Sachs Group, Inc. ("J. Aron"). A liability is recognized for the Inventory supply and intermediation arrangementsIntermediation Agreements and is recorded at market price for the J. Aron owned inventory held in the Company's storage tanksCompany’s J. Aron Storage Tanks under the Inventory Intermediation Agreements, with any change in the market price being recorded in costCost of sales.
The Company has the obligation to purchaseproducts and sell feedstocks under a supply agreement with Statoil Marketing and Trading (US) Inc. ("Statoil") for its Delaware City refinery (the “Crude Supply Agreement”).  Statoil purchases the refinery's production of certain feedstocks or purchases feedstocks from third parties on the refineries' behalf. Legal title to the feedstocks is held by Statoil and the feedstocks are held in the refinery's storage tanks until they are needed for further use in the refining process. At that time, the products are drawn out of the storage tanks and purchased by the refinery. These purchases and sales are settled monthly at the daily market prices related to those

15
PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

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 refinery to Statoil. Inventory remains at cost and the net cash receipts result in a liability.other.
The Company is subject to obligations to purchase Renewable Identification Numbers ("RINs"(“RINs”) required to comply with the Renewable Fuels Standard. The Company'sCompany’s overall RINs obligation is based on a percentage of domestic shipments of on-road fuels as established by the Environmental Protection Agency ("EPA").Agency. 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 Expensesexpenses when its RINs liability is greater than the amount of RINs earned and purchased in a given period and in Prepaid expenses and other current assets when the amount of RINs earned and purchased is greater than the RINs liability. In addition, the Company is subject to obligations to comply with federal and state legislative and regulatory measures, including regulations in the state of California pursuant to Assembly Bill 32, 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.



7. CREDIT FACILITIESDEBT
Senior Notes
On April 29, 2015, PBF Rail Logistics LLC ("PBF Rail"), an indirect wholly-owned subsidiary ofJanuary 24, 2020, PBF Holding entered into the First Amendment to Loan Agreement (as amended, the “Rail Facility”an indenture (the “Indenture”) among Credit Agricole Corporate + Investment Bank as Administrative Agent, Deutsche Bank Trust Company Americas as Collateral Agent, DVB Bank SE as Syndication Agent, ING Bank, a branch of ING-DiBa AG as Documentation AgentPBF Holding and certain other Continuing Lenders, as defined in the agreement. The primary purpose of the Rail Facility is to fund the acquisition by PBF Rail of coiled and insulated crude tank cars and non-coiled and non-insulated general purpose crude tank cars. The amendments to the Rail Facility include the extension of the maturity to April 29, 2017, the reduction of the total commitment from $250,000 to $150,000, and the reduction of the commitment fee on the unused portion of the Rail Facility.
On May 12, 2015, PBFX entered into an indenture among the Partnership,Holding’s wholly-owned subsidiary, PBF Logistics Finance Corporation a Delaware corporation and wholly-owned subsidiary of(together with PBF Holding, the Partnership ("PBF Logistics Finance," and together with the Partnership, the "Issuers"“Issuers”), the Guarantorsguarantors named therein (certain subsidiaries of PBFX)(collectively the “Guarantors”), Wilmington Trust, National Association, as Trustee and Deutsche Bank Trust Company Americas, as Trustee, under which the Issuers issued $350,000$1.0 billion in aggregate principal amount of 6.875%6.00% senior unsecured notes due 2028 (the “2028 Senior Notes due 2023 (the "PBFX Senior Notes"Notes”). PBF LLC has provided a limited guarantee of collection of the principal amount of the PBFX Senior Notes, but is not otherwise subject to the covenants of the indenture. Of the $350,000 aggregate PBFX Senior Notes, $19,910 were purchased by certain of PBF Energy’s officers and directors and their affiliates and family members pursuant to a separate private placement transaction. After deducting offering expenses, PBFXThe Issuers received net proceeds of approximately $343,000$987.0 million from the PBFXoffering after deducting the initial purchasers’ discount and estimated offering expenses. The Company primarily used the net proceeds to fully redeem the 7.00% senior notes due 2023 (the “2023 Senior Notes”), including accrued and unpaid interest, on February 14, 2020, and to fund a portion of the cash consideration for the Martinez Acquisition. The difference between the carrying value of the 2023 Senior Notes offering.on the date they were reacquired and the amount for which they were reacquired has been classified as Debt extinguishment costs in the Condensed Consolidated Statement of Operations.
PBF LLC, exclusive of its consolidating subsidiaries, provides a limited guarantee of collectionIn connection with the issuance of the principal amount2028 Senior Notes, the Issuers and the Guarantors entered into a registration rights agreement whereby the Company has agreed to file with the SEC and use reasonable efforts to cause to become effective within 365 days of the PBFXclosing date, a registration statement relating to an offer to exchange the 2028 Senior Notes for an issue of registered notes with terms substantially identical to the 2028 Senior Notes. UnderThe Issuers will be obligated to pay additional interest if they fail to comply with their obligations to register the PBF LLC parent company limited guarantee, PBF LLC2028 Senior Notes within the specified time period. The Company fully intends to file a registration statement for the exchange of the 2028 Senior Notes within the 365 day period following the closing of the 2028 Senior Notes. In addition, there are no restrictions or hindrances that the Company is aware of that would not have any obligation to make principal payments with respect toprohibit the notes unless all remedies, includingIssuers from filing such registration statement and maintaining its effectiveness as stipulated in the context of bankruptcy proceedings, have first been fully exhausted against PBFX with respect toregistration rights agreement. As such, payment obligation, and holders of the PBFX Senior Notes are still owed amounts in respect of the principal of the notes. PBF LLCCompany asserts that it is not otherwise subjectprobable that it will have to the covenants of the indenture governing the notes. Astransfer any consideration as a result of the limited guarantee the following PBF LLC parent company balance sheetsregistration rights agreement and statements of operations support the limited guarantee of collection.thus no loss contingency was recorded.

16
28
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

PBF ENERGY COMPANY LLC (PARENT COMPANY)
BALANCE SHEETS
(in thousands)
    
 September 30,
2015		 December 31,
2014
ASSETS   
Current assets:   
Cash and cash equivalents$83,924
 $135,210
Due from related parties268,090
 —
Other current assets15,234
 —
Total current assets367,248
 135,210
Intercompany note receivable18,178
 12,510
Investment in subsidiaries1,235,039
 1,173,854
Total assets$1,620,465
 $1,321,574
    
LIABILITIES AND EQUITY   
    
Current liabilities:   
Due to related parties$115,228
 $—
    
Total equity1,505,237
 1,321,574
Total liabilities and equity$1,620,465
 $1,321,574

PBF ENERGY COMPANY LLC (PARENT COMPANY)
STATEMENT OF OPERATIONS
(in thousands)
 Three Months Ended September 30, Nine Months Ended September 30,
 2015 2014 2015 2014
Equity in earnings of subsidiaries$59,083
 $257,191
 $441,770
 $546,180
Interest (expense) income(293) (5) (190) 157
Net income$58,790
 $257,186
 $441,580
 $546,337

8. MARKETABLE SECURITIES
The U.S Treasury securities purchased2028 Senior Notes are guaranteed on a senior unsecured basis by substantially all of PBF Holding’s subsidiaries. The 2028 Senior Notes and guarantees are senior unsecured obligations and rank equal in right of payment with all of the Issuers’ and the Guarantors’ existing and future indebtedness, including PBF Holding’s Revolving Credit Facility and the Issuers’ 7.25% senior notes due 2025 (the “2025 Senior Notes”). The 2028 Senior Notes and the guarantees rank senior in right of payment to the Issuers’ and the Guarantors’ existing and future indebtedness that is expressly subordinated in right of payment thereto. The 2028 Senior Notes and the guarantees are effectively subordinated to any of the Issuers’ and the Guarantors’ existing or future secured indebtedness (including the Revolving Credit Facility) to the extent of the value of the collateral securing such indebtedness. The 2028 Senior Notes and the guarantees are structurally subordinated to any existing or future indebtedness and other obligations of the Issuers’ non-guarantor subsidiaries.
At any time prior to February 15, 2023, the Issuers may on any one or more occasions redeem up to 35% of the aggregate principal amount of the 2028 Senior Notes in an amount not greater than the net cash proceeds of certain equity offerings at a redemption price equal to 106.000% of the principal amount of the 2028 Senior Notes, plus any accrued and unpaid interest through the date of redemption. On or after February 15, 2023, the Issuers may redeem all or part of the 2028 Senior Notes, in each case at the redemption prices described in the Indenture, together with any accrued and unpaid interest through the date of redemption. In addition, prior to February 15, 2023, the Issuers may redeem all or part of the 2028 Senior Notes at a “make-whole” redemption price described in the Indenture, together with any accrued and unpaid interest through the date of redemption.
As disclosed in “Note 20 - Subsequent Events”, on May 13, 2020, PBF Holding issued $1.0 billion in aggregate principal amount of 9.25% senior secured notes due 2025 (the “2025 Senior Secured Notes”). The Company intends to use the net proceeds for general corporate purposes.
PBF Holding Revolving Credit Facility
The Revolving Credit Facility has a maximum commitment of $3.4 billion, a maturity date of May 2023, and a Borrowing Base, as defined in the agreement governing the Revolving Credit Facility (the “Revolving Credit Agreement”) to make funds available for working capital and other general corporate purposes. Borrowings under the Revolving Credit Facility bear interest at the Alternative Base Rate plus the Applicable Margin or at the Adjusted LIBOR plus the Applicable Margin, all as defined in the Revolving Credit Agreement. In addition, an accordion feature allows for commitments of up to $3.5 billion.
During the three months ended March 31, 2020, the Company used advances under the Revolving Credit Facility to fund a portion of the Martinez Acquisition and other general corporate purposes. The outstanding borrowings under the Revolving Credit Facility as of March 31, 2020 were $900.0 million. There were 0 outstanding borrowings under the Revolving Credit Facility as of December 31, 2019.
On February 18, 2020, in connection with its entry into a $300.0 million uncommitted receivables purchase facility (the “Receivables Facility”), the proceedsCompany amended the Revolving Credit Agreement and entered into a related intercreditor agreement to allow it to sell certain Eligible Receivables (as defined in the Revolving Credit Agreement) derived from the PBFX Offeringsale of refined product over truck racks. Under the Receivables Facility, the Company sells such receivables to a bank subject to bank approval and certain conditions. The sales of receivables under the Receivables Facility are used as collateralabsolute and irrevocable but subject to secure a three-year, $300,000 term loan facility entered into by PBFX (the "PBFX Term Loan"). PBFX anticipates holdingcertain repurchase obligations under certain circumstances.
As disclosed in “Note 20 - Subsequent Events”, on May 7, 2020, the securities forCompany further amended the Revolving Credit Facility, to increase PBF Holding’s ability to incur certain secured debt from an indefinite amount equal to 10% of time (the securities will be rolled over as they mature). As necessary and at the discretionits total assets to 20% of PBFX, these securities are expected to be liquidated and the proceeds used to fund future capital expenditures. While PBFX does not routinely sell marketable securities prior to their scheduled maturity dates, some of PBFX's investments may be held and restricted for the purpose of funding future capital expenditures and acquisitions, so these investments are classified as available-for-sale marketable securities as they may occasionally be sold prior to their scheduled maturity dates due to the unexpected timing of cash needs. The carrying value of these marketable securities approximates fair value and are measured using Level 1 inputs.its total assets.


17
29
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

The maturities of the marketable securities range from one to three months and are classified on the balance sheet in non-current assets.8. AFFILIATE NOTE PAYABLE - PBF LLC
As of September 30, 2015March 31, 2020 and December 31, 2014,2019, PBF LLC had an outstanding note payable with PBF Energy for an aggregate principal amount of $377.5 million and $376.4 million, respectively. During 2019, the Company held $234,249note payable was amended to extend the maturity date from April 2020 to April 2030. The note has an annual interest rate of 2.5% and $234,930, respectively,may be prepaid in marketable securities. The gross unrecognized holding gains and losses aswhole or in part at any time, at the option of September 30, 2015 and December 31, 2014 were not material. The net realized gainsPBF LLC without penalty or losses from the sale of marketable securities were immaterial for the three and nine months ended September 30, 2015 and 2014.premium.


9. COMMITMENTS AND CONTINGENCIES
In the ordinary conduct of the Company’s business, the Company is from time to time subject to lawsuits, investigations and claims, including class action proceedings, mass tort actions, tort actions, environmental claims and employee-related matters. The outcome of these matters cannot always be predicted accurately, but the Company accrues liabilities for these matters if the Company has determined that it is probable a loss has been incurred and the loss can be reasonably estimated. For such ongoing matters for which we have not recorded a liability but losses are reasonably possible, we are unable to estimate a range of possible losses at this time due to various reasons that may include but are not limited to, matters being in an early stage and not fully developed through pleadings, discovery or court proceedings, number of potential claimants being unknown or uncertainty regarding a number of different factors underlying the potential claims. However, the ultimate resolution of one or more of these contingencies could result in an adverse outcome that may have a material effect on our financial position, results of operations or cash flows.
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.
These laws and permits raise potential exposure to future claims and lawsuits involving environmental and safety matters which could include soil and water contamination, air pollution, personal injury and property damage allegedly caused by substances which the Company manufactured, handled, used, released or disposed of, transported, or that relate to pre-existing conditions for which the Company has assumed responsibility. The Company believes that its current operations are in substantial compliance with existing environmental and safety requirements. However, there have been and will continue to be ongoing discussions about environmental and safety matters between the Company and federal and state authorities, including notices of violations, citations and other enforcement actions, some of which have resulted or may result in changes to operating procedures and in capital expenditures. While it is often difficult to quantify future environmental or safety related expenditures, the Company anticipates that continuing capital investments and changes in operating procedures will be required for the foreseeable future to comply with existing and new requirements, as well as evolving interpretations and more strict enforcement of existing laws and regulations.
In connection with the Paulsboroacquisition of the Torrance refinery acquisition,and related logistics assets, the Company assumed certain pre-existing environmental liabilities totaling $119.8 million as of March 31, 2020 ($121.3 million as of December 31, 2019), related to certain environmental remediation obligations. The environmental liabilityobligations to address existing soil and groundwater contamination and monitoring activities and other clean-up activities, which reflects the current estimated cost of $10,714 recorded as of September 30, 2015 ($10,476 as of December 31, 2014) represents the present value of expected future costs discounted at a rate of 8%.remediation obligations. The current portion of the environmental liability is recorded in accruedAccrued expenses and the non-current portion is recorded in otherOther long-term liabilities. As of September 30, 2015 and December 31, 2014, this liability is self-guaranteed by the Company.
In connection with the acquisition of the Delaware City assets, Valero Energy Corporation ("Valero") remains responsible for certain pre-acquisition environmental obligations up to $20,000 and the predecessor to Valero in ownership of the refinery retains other historical obligations.
In connection with the acquisition of the Delaware City assets and the Paulsboro refinery, the Company and Valero purchased ten year, $75,000 environmental insurance policies to insure against unknown environmental liabilities at each site. In connection with the Toledo refinery acquisition, Sunoco, Inc. (R&M) ("Sunoco") remains responsible for environmental remediation for conditions that existed on the closing date for twenty years from March 1, 2011, subject to certain limitations.
In 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, six Northeastern states require heating oil with 15 PPM or less sulfur. By July 1, 2016, two more states are expected to adopt this requirement and by July 1, 2018 most of the remaining Northeastern states (except for Pennsylvania and New Hampshire) will require heating oil with 15 PPM or less sulfur. 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 Clean Air Act. This final rule establishes more stringent vehicle emission standards and further reduces the sulfur content of gasoline starting in January of 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 standards set by the new rule are not expected to have a material impact on the Company’s financial position, results of operations or cash flows.
The EPA was required to release the final annual standards for the Reformulated Fuels Standard ("RFS") for 2014 no later than Nov 29, 2013 and for 2015 no later than Nov 29, 2014. The EPA did not meet these requirements but did release proposed standards for 2014. The EPA did not finalize this proposal in 2014. However, in May 2015,

1830
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

the EPA re-proposed annual standards for RFS 2 for 2014, and proposed new standards for 2015 and 2016 and biomass-based diesel volumes for 2017. The EPA is proposing volume requirementsaggregate environmental liability reflected in the annual standardsCompany’s Condensed Consolidated Balance Sheets was $164.3 million and $134.6 million at March 31, 2020 and December 31, 2019, respectively, of which while below the volumes originally set by Congress, would$151.1 million and $121.8 million, respectively, were classified as Other long-term liabilities. These liabilities include remediation and monitoring costs expected to be incurred over an extended period of time. Estimated liabilities could increase renewable fuel use in the U.S. above historical levelsfuture when the results of ongoing investigations become known, are considered probable and provide for steady growth over time. The EPA is also proposingcan be reasonably estimated.
Contingent Consideration
In connection with the Martinez Acquisition, the Sale and Purchase Agreement includes an earn-out provision based on certain earning thresholds of the Martinez refinery. Pursuant to increase the required volume of biomass-based diesel in 2015, 2016, and 2017 while maintainingagreement, the opportunity for growth in other advanced biofuels. The EPA has solicited commentsCompany will make payments to the Seller based on the proposed annual standards and held public hearings on June 25, 2015. Final action on this proposal is expected by November 30, 2015. If they are issued,future earnings of the final standards may haveMartinez refinery, as defined in the agreement, for a material impact onperiod of up to four years following the Company's cost of compliance with RFS 2.
On September 12, 2012, the EPA issued final amendments to the New Source Performance Standards ("NSPS") for petroleum refineries, including standards for emissions of nitrogen oxides from process heaters and work practice standards and monitoring requirements for flares.acquisition closing date. The Company has evaluatedrecorded the impactacquisition date fair value of the regulation and amended standards on its refinery operations and currently does not expectearn-out provision as contingent consideration of $77.3 million within “Other long-term liabilities” within the cost to comply to be material.
In addition,Company’s Condensed Consolidated Balance Sheets. The Martinez Contingent Consideration was $24.3 million as of March 31, 2020, representing the EPA publishedpresent value of expected future payments discounted at a Final Rule toblended rate of 24.6%. At March 31, 2020, 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 impactestimated undiscounted liability totaled $43.5 million, based on the Company’s financial position,anticipated future earn-out payments.
In connection with the PBFX acquisition of CPI Operations LLC from Crown Point International LLC (“Crown Point”) in October 2018, the purchase and sale agreement between PBFX and Crown Point included an earn-out provision related to an existing commercial agreement with a third party, based on the future results of operations or cash flows.

The Delaware City Rail Terminal and DCR West Rack are collocated with the Delaware City refinery, and are located in Delaware's coastal zone where certain activities are regulated under the Delaware Coastal Zone act. On June 14, 2013, two administrative appeals were filed by the Sierra Club and Delaware Audubon (collectively the "Appellants") regarding an air permit Delaware City Refining obtained to allow loading of crude oil onto barges. The appeals allege that both the loading of crude oil onto barges and the operation of the Delaware City Rail Terminal violate Delaware’s Coastal Zone Act. The first appeal is Number 2013-1 before the State Coastal Zone Industrial Control Boardacquired idled assets (the “CZ Board”“PBFX Contingent Consideration”), and the second appeal is before the Environmental Appeals Board (the "EAB") and appeals Secretary’s Order No. 2013-A-0020. The CZ Board held a hearing on the first appeal on July 16, 2013, and ruled in favor of Delaware City Refining and the State of Delaware and dismissed the Appellants’ appeal for lack of standing. The Appellants appealed that decision. Pursuant to the Delaware Superior Court, New Castle County, Case No. N13A-09-001 ALR,purchase and Delaware City Refiningsale agreement, PBFX and Crown Point will share equally in the Statefuture operating profits of Delaware filed cross-appeals. A hearing on the second appeal beforerestarted assets, as defined in the EAB, case no. 2013-06,purchase and sale agreement, over a contractual term of up to three years starting in 2019. The PBFX Contingent Consideration recorded was held on January 13, 2014,$27.0 million and the EAB ruled in favor$26.1 million as of Delaware City Refining and the State and dismissed the appeal for lack of jurisdiction. The Appellants also filed a Notice of Appeal with the Superior Court appealing the EAB’s decision. On March 31, 20152020 and December 31, 2019, respectively, representing the Superior Court affirmedpresent value of expected future payments discounted at a blended rate of 8.79%. At March 31, 2020, the decisions by both the CZ Board and the EAB stating they both lacked jurisdiction to rule on the Appellants' appeal. The Appellants appealed to the Delaware Supreme Court, and, on November 5, 2015, the Delaware Supreme Court affirmed the Superior Court decision.
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 contingentestimated undiscounted 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

19
PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

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) andtotaled $31.0 million based on certain assumptions. Generally, these tax distributionsPBFX’s anticipated total annual earn-out payments. The acquired idled assets that 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 obtains funding to pay its tax distributions by causing PBF Holding to distribute cash to PBF LLC and from distributions it receives from PBFX.

PBFX Contingent Consideration recommenced operations in October 2019.
Tax Receivable Agreement

PBF Energy entered into a tax receivable agreement with the PBF LLC Series A and PBF LLC Series B Unit holdersunitholders (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’sEnergy 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.

31
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The payment obligations under the Tax Receivable Agreement are obligations of PBF Energy and not of PBF LLC.LLC, PBF Holding or PBFX. 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 94.4%99.2% interest in PBF LLC as of September 30, 2015 (89.9%March 31, 2020 (99.0% as of December 31, 2014)2019). 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 of March 31, 2020, PBF Energy has recognized a liability for the Tax Receivable Agreement of $385.1 million ($373.5 million as of December 31, 2019) reflecting the estimate of the undiscounted amounts that the Company expects to pay under the agreement.


10. LEASES
The Company leases office space, office equipment, refinery facilities and equipment, railcars and other logistics assets primarily under non-cancelable operating leases, with terms typically ranging from one to twenty years, subject to certain renewal options as applicable. The Company considers those renewal or termination options that are reasonably certain to be exercised in the determination of the lease term and initial measurement of lease liabilities and right-of-use assets. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Interest expense for finance leases is incurred based on the carrying value of the lease liability. Leases with an initial term of 12 months or less are not recorded on the balance sheet.
The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an estimate of its incremental borrowing rate.
For substantially all classes of underlying assets, the Company has elected the practical expedient not to separate lease and non-lease components, which allows it to combine the components if certain criteria are met. For certain leases of refinery support facilities, which have commenced subsequent to the year ended December 31, 2019, the Company accounts for the non-lease service component separately. There are no material residual value guarantees associated with any of the Company’s leases. There are no significant restrictions or covenants included in the Company’s lease agreements other than those that are customary in such arrangements. Certain of the Company’s leases, primarily for the Company’s commercial and logistics asset classes, include provisions for variable payments. These variable payments are typically determined based on a measure of throughput or actual days the asset has operated during the contract term or another measure of usage and are not included in the initial measurement of lease liabilities and right-of-use assets.
20
32
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT
Lease Position as of March 31, 2020 and December 31, 2019
The table below presents the lease related assets and liabilities recorded on the Company’s Condensed Consolidated Balance Sheets for the periods presented:

(in millions)Classification on the Balance SheetMarch 31, 2020December 31, 2019
Assets
Operating lease assetsOperating lease right of use assets$330.5  $306.4  
Finance lease assetsFinancing lease right of use assets84.9  24.2  
Total lease right of use assets$415.4  $330.6  
Liabilities
Current liabilities:
Operating lease liabilitiesCurrent operating lease liabilities$79.5  $72.1  
Finance lease liabilitiesAccrued expenses12.7  6.5  
Noncurrent liabilities:
Operating lease liabilitiesLong-term operating lease liabilities249.4  233.1  
Finance lease liabilitiesLong-term financing lease liabilities73.2  18.4  
Total lease liabilities$414.8  $330.1  

Lease Costs
The table below provides certain information related to costs for the Company’s leases for the periods presented:
Three Months Ended March 31,
Lease Costs (in millions)
20202019
Components of total lease cost:
Finance lease cost
Amortization of right of use assets$2.9  $—  
Interest on lease liabilities0.9  —  
Operating lease cost28.2  26.2  
Short-term lease cost22.0  23.3  
Variable lease cost3.9  1.4  
Total lease cost$57.9  $50.9  

There were no net gains or losses on any sale-leaseback transactions for the three months ended March 31, 2020 and March 31, 2019.
33
PBF ENERGY INC. AND BARREL DATA)PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


Other Information
The table below provides supplemental cash flow information related to leases for the periods presented (in millions):
Three Months Ended March 31,
20202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$28.6  $20.9  
Operating cash flows for finance leases0.9  —  
Financing cash flows for finance leases2.6  —  
Supplemental non-cash amounts of lease liabilities arising from obtaining right-of-use assets111.1  17.0  

Lease Term and Discount Rate
The table below presents certain information related to the weighted average remaining lease term and weighted average discount rate for the Company’s leases as of March 31, 2020:

Weighted average remaining lease term - operating leases12.1 years
Weighted average remaining lease term - finance leases7.8 years
Weighted average discount rate - operating leases7.2 %
Weighted average discount rate - finance leases5.3 %

Undiscounted Cash Flows

The table below reconciles the fixed component of the undiscounted cash flows for each of the periods presented to the lease liabilities recorded on the Condensed Consolidated Balance Sheets as of March 31, 2020:
Amounts due within twelve months of March 31, (in millions)
Finance LeasesOperating Leases
2020$16.8  $100.1  
202115.4  65.4  
202211.0  51.1  
202311.0  31.7  
202411.0  33.1  
Thereafter40.0  232.0  
Total minimum lease payments105.2  513.4  
Less: effect of discounting19.3  184.5  
Present value of future minimum lease payments85.9  328.9  
Less: current obligations under leases12.7  79.5  
Long-term lease obligations$73.2  $249.4  
As of March 31, 2020, the Company has entered into certain leases that have not yet commenced. Such leases include a 15-year lease for hydrogen supply, with future payments estimated to total approximately $212.6 million, expected to commence in the second quarter of 2020. No other such pending leases, either individually or in the aggregate, are material. There are no material lease arrangements in which the Company is the lessor.
34
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


11. EQUITY
Noncontrolling Interest in PBF LLC
PBF Energy is the sole managing member of, and has a controlling interest in, PBF LLC. As the sole managing member of PBF LLC, PBF Energy operates and controls all of the business and affairs of PBF LLC and its subsidiaries. PBF Energy’s equity interest in PBF LLC was approximately 99.2% and 99.0% as of March 31, 2020 and December 31, 2019, respectively.
PBF Energy consolidates the financial results of PBF LLC and its subsidiaries, and records a noncontrolling interest for the economic interest in PBF Energy held by the members of PBF LLC other than PBF Energy. Noncontrolling interest on the Condensed Consolidated Statements of Operations includes the portion of net income or loss attributable to the economic interest in PBF Energy held by the members of PBF LLC other than PBF Energy. Noncontrolling interest on the Condensed Consolidated Balance Sheets represents the portion of net assets of PBF Energy attributable to the members of PBF LLC other than PBF Energy.
The noncontrolling interest ownership percentages in PBF LLC as of March 31, 2020 and December 31, 2019 are calculated as follows:
Holders of PBF LLC Series A UnitsOutstanding Shares of PBF Energy Class A Common Stock
Total *
December 31, 20191,215,317119,804,971121,020,288
1.0 %99.0 %100.0 %
March 31, 20201,019,916119,986,604121,006,520
0.8 %99.2 %100.0 %
——————————
* Assumes all of the holders of PBF LLC Series A Units exchange their PBF LLC Series A Units for shares of PBF Energy’s Class A common stock on a 1-for-one basis.
Noncontrolling Interest in PBFX
PBF LLC held a 48.2% limited partner interest in PBFX with the remaining 51.8% limited partner interest owned by the public common unitholders as of March 31, 2020. PBF LLC is also the sole member of PBF GP, the general partner of PBFX. As noted in “Note 2 - PBF Logistics LP”, pursuant to the IDR Restructuring, the IDRs held by PBF LLC were canceled and converted into newly issued common units.
PBF Energy, through its ownership of PBF LLC, consolidates the financial results of PBFX, and records a noncontrolling interest for the economic interest in PBFX held by the public common unitholders. Noncontrolling interest on the Condensed Consolidated Statements of Operations includes the portion of net income or loss attributable to the economic interest in PBFX held by the public common unitholders of PBFX other than PBF Energy (through its ownership in PBF LLC). Noncontrolling interest on the Condensed Consolidated Balance Sheets includes the portion of net assets of PBFX attributable to the public common unitholders of PBFX.
35
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The noncontrolling interest ownership percentages in PBFX as of December 31, 2019 and March 31, 2020 are calculated as follows:

Units of PBFX Held by the PublicUnits of PBFX Held by PBF LLCTotal
December 31, 201932,176,40429,953,63162,130,035
51.8 %48.2 %100.0 %
March 31, 202032,197,76029,953,63162,151,391
51.8 %48.2 %100.0 %
Noncontrolling Interest in PBF Holding
In connection with the acquisition of the Chalmette refinery, PBF Holding recorded noncontrolling interests in 2 subsidiaries of Chalmette Refining. PBF Holding, through Chalmette Refining, owns an 80% ownership interest in both Collins Pipeline Company and T&M Terminal Company. In both of the three months ended March 31, 2020 and 2019 the Company recorded noncontrolling interest in the earnings of these subsidiaries of less than $0.1 million.
36
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Changes in Equity and Noncontrolling Interests
The following tables summarize the changes in equity for the controlling and noncontrolling interests of PBF Energy for the three months ended March 31, 2020 and 2019, respectively:


PBF Energy (in millions)
PBF Energy Inc. EquityNoncontrolling
Interest in PBF LLC		Noncontrolling
Interest in PBF Holding		Noncontrolling
Interest in PBFX		Total Equity
Balance at January 1, 2020$3,039.6  $113.2  $10.9  $421.8  $3,585.5  
Comprehensive income (loss)(1,068.7) (14.6) —  18.0  (1,065.3) 
Dividends and distributions(35.9) (0.4) —  (17.1) (53.4) 
Stock-based compensation6.8  —  —  1.3  8.1  
Exercise of PBF LLC and PBF Energy options and warrants, net0.2  —  —  —  0.2  
Taxes paid for net settlements of equity-based compensation(0.9) —  —  —  (0.9) 
Exchanges of PBF Energy Company LLC Series A Units for PBF Energy Class A common stock1.9  (1.9) —  —  —  
Other5.3  —  —  —  5.3  
Balance at March 31, 2020$1,948.3  $96.3  $10.9  $424.0  $2,479.5  


PBF Energy (in millions)
PBF Energy Inc. EquityNoncontrolling
Interest in PBF LLC		Noncontrolling
Interest in PBF Holding		Noncontrolling
Interest in PBFX		Total Equity
Balance at January 1, 2019$2,676.5  $112.2  $10.9  $448.9  $3,248.5  
Comprehensive income229.5  3.1  —  9.0  241.6  
Dividends and distributions(36.0) (0.4) —  (13.2) (49.6) 
Issuance of additional PBFX common units82.4  —  —  (82.4) —  
Stock-based compensation6.2  —  —  1.0  7.2  
Exercise of PBF LLC and PBF Energy options and warrants, net0.1  —  —  —  0.1  
Taxes paid for net settlements of equity-based compensation(1.0) —  —  —  (1.0) 
Balance at March 31, 2019$2,957.7  $114.9  $10.9  $363.3  $3,446.8  
37
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


The following tables summarize the changes in equity for the controlling and noncontrolling interests of PBF LLC for the three months ended March 31, 2020 and 2019, respectively:
PBF LLC (in millions)
PBF Energy Company LLC EquityNoncontrolling Interest in PBF HoldingNoncontrolling
Interest in PBFX		Total Equity
Balance at January 1, 2020$3,176.4  $10.9  $421.8  $3,609.1  
Comprehensive income (loss)(1,459.4) —  18.0  (1,441.4) 
Dividends and distributions(36.3) —  (17.1) (53.4) 
Exercise of PBF LLC options and warrants, net(0.9) —  —  (0.9) 
Stock-based compensation6.8  —  1.3  8.1  
Balance at March 31, 2020$1,686.6  $10.9  $424.0  $2,121.5  

PBF LLC (in millions)
PBF Energy Company LLC EquityNoncontrolling
Interest in PBF Holding		Noncontrolling
Interest in PBFX		Total Equity
Balance at January 1, 2019$2,759.6  $10.9  $448.9  $3,219.4  
Comprehensive income318.6  —  9.0  327.6  
Dividends and distributions(36.4) —  (13.2) (49.6) 
Exercise of PBF LLC and PBF Energy options and warrants, net(0.9) —  —  (0.9) 
Issuance of additional PBFX common units82.4  —  (82.4) —  
Stock-based compensation6.2  —  1.0  7.2  
Balance at March 31, 2019$3,129.5  $10.9  $363.3  $3,503.7  

12. DIVIDENDS AND DISTRIBUTIONS
With respect to dividends and distributions paid during the ninethree months ended September 30, 2015,March 31, 2020, PBF LLC made an aggregate non-tax quarterly distributionsdistribution of $81,954,$36.2 million, or $0.90$0.30 per unit to its members, of which $77,287$35.9 million was distributed proratapro-rata to PBF Energy and the balance was distributed to its other members. PBF Energy used this $77,287$35.9 million to pay a quarterly cash dividendsdividend of $0.30 per share of Class A common stock on March 10, 2015, May 27, 2015 and August 10, 2015. In addition, during the nine months ended September 30, 2015, PBF LLC made aggregate tax distributions to its members of $186,112, of which $175,551 was distributed to PBF Energy.17, 2020.


With respect to distributions paid during the ninethree months ended September 30, 2015,March 31, 2020, PBFX paid a distribution on outstanding common and subordinated units of $0.33$0.520 per unit on March 4, 2015, $0.35 per unit on May 29, 2015 and $0.37 per unit on August 31, 2015 for a total distribution of $35,772,17, 2020, of which $18,690$15.6 million was distributed to PBF LLC and the balance was distributed to its public unit holders.unitholders.

12. TREASURY UNITS

On August 19, 2014, PBF Energy's Board of Directors authorized the repurchase of up to $200,000 of the Company's Series C Units, through the repurchase of PBF Energy’s Class A common stock (the "Repurchase Program"). On October 29, 2014, PBF Energy's Board of Directors approved an additional $100,000 increase to the existing Repurchase Program. As of September 30, 2015, the Company has purchased approximately 6.05 million of the Company's Series C Units under the Repurchase Program, for a total of $150,804 through the purchase of PBF Energy’s Class A common stock in open market transactions. During the three and nine months ended September 30, 2015, the Company repurchased 142,487 and 284,771 of the Company's Series C Units, respectively, for $4,073 and $8,073, respectively through the purchase of PBF Energy’s Class A common stock in open market transactions. During both, the three and nine months ended September 30, 2014, the Company repurchased 1,354,943 of the Company's Series C Units for $32,593 through the purchase of PBF Energy’s Class A common stock in open market transactions.

The following table summarizes PBF Energy's Class A common stock repurchase activity under the Repurchase Program:
38

Number of shares purchased (1)
 Cost of purchased shares
Shares purchased as of December 31, 20145,765,946
 $142,731
Shares purchased during the nine months ended September 30, 2015284,771
 8,073
Shares purchased as of September 30, 20156,050,717
 $150,804
__________   
(1) - The shares purchased include only those shares that have settled as of the period end date.
These repurchases may be made from time to time through various methods, including open market transactions, block trades, accelerated share repurchases, privately negotiated transactions or otherwise, certain of which may be effected through Rule 10b5-1 and Rule 10b-18 plans. The timing and number of shares repurchased will depend on a variety of factors, including price, capital availability, legal requirements and economic and market conditions.
PBF Energy is not obligated to purchase any shares under the Repurchase Program, and repurchases may be suspended or discontinued at any time without prior notice.

As of September 30, 2015, PBF Energy has the ability to purchase an additional $149,196 in Class A common stock under the approved Repurchase Program.


21
ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

13. EMPLOYEE BENEFIT PLANS
The Company amended the PBF Energy Pension Plan to, among other things, incorporate into the plan all employees who became employed at the Company’s Martinez, California location on February 1, 2020, in connection with the Martinez Acquisition. The amendment to the plan was effective as of February 1, 2020. The components of net periodic benefit cost related to the Company’s defined benefit plans consisted of the following:
(in millions)Three Months Ended March 31,
Pension Benefits20202019
Components of net periodic benefit cost:
Service cost$13.8  $10.9  
Interest cost1.8  2.1  
Expected return on plan assets(3.1) (2.4) 
Amortization of prior service cost and actuarial loss0.1  0.1  
Net periodic benefit cost$12.6  $10.7  

(in millions)Three Months Ended March 31,
Post-Retirement Medical Plan20202019
Components of net periodic benefit cost:
Service cost$0.3  $0.2  
Interest cost0.1  0.2  
Amortization of prior service cost and actuarial loss0.1  0.1  
Net periodic benefit cost$0.5  $0.5  

39
  Three Months Ended 
 September 30,		 Nine Months Ended 
 September 30,
Pension Benefits 2015 2014 2015
2014
Components of net periodic benefit cost:        
Service cost $5,790
 $5,134
 $17,369
 $14,276
Interest cost 710
 616
 2,126
 1,787
Expected return on plan assets (830) (546) (2,489) (1,609)
Amortization of prior service costs 13
 13
 39
 26
Amortization of loss 311
 277
 933
 757
Net periodic benefit cost $5,994
 $5,494
 $17,978
 $15,237
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

14. REVENUES
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.
As described in “Note 18 - Segment Information”, the Company’s business consists of the Refining Segment and Logistics Segment. The following table provides information relating to the Company’s revenues for each product or group of similar products or services by segment for the periods presented.

Three Months Ended March 31,
(in millions)20202019
Refining Segment:
Gasoline and distillates$4,570.4  $4,433.0  
Feedstocks and other311.3  200.7  
Asphalt and blackoils207.0  353.0  
Chemicals112.8  151.7  
Lubricants58.5  70.3  
Total5,260.0  5,208.7  
Logistics Segment:
Logistics93.0  78.8  
Total revenues prior to eliminations5,353.0  5,287.5  
Elimination of intercompany revenues(75.5) (71.3) 
Total Revenues$5,277.5  $5,216.2  

The majority of the Company’s revenues are generated from the sale of refined petroleum products reported in the Refining segment. 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 its performance obligation to its customers is fulfilled. Delivery and transfer of title are specifically agreed to between the Company and customers within the contracts. The Refining segment 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, Revenues from Contracts with Customers.
The Company’s logistics segment revenues are generated by charging fees for crude oil and refined products terminaling, storage and pipeline services based on the greater of contractual minimum volume commitments, as applicable, or the delivery of actual volumes based on contractual rates applied to throughput or storage volumes. A majority of the Company’s logistics revenues are generated by intercompany transactions and are eliminated in consolidation.
Deferred Revenues
The Company records deferred revenues when cash payments are received or are due in advance of performance, including amounts which are refundable. Deferred revenue was $36.7 million and $20.1 million as of March 31, 2020 and December 31, 2019, respectively. Fluctuations in the deferred revenue balance are primarily driven by the timing and extent of cash payments received or due in advance of satisfying the Company’s performance obligations.
40
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

  Three Months Ended 
 September 30,		 Nine Months Ended 
 September 30,
Post Retirement Medical Plan 2015 2014 2015 2014
Components of net periodic benefit cost:        
Service cost $243
 $269
 $731
 $747
Interest cost 134
 125
 403
 353
Amortization of prior service costs 76
 52
 228
 107
Amortization of loss (gain) —
 —
 —
 (4)
Net periodic benefit cost $453
 $446
 $1,362
 $1,203
The Company’s payment terms vary by type and location of customers 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, the Company requires payment before the products or services are delivered to the customer.


14.
15. INCOME TAXES
PBF Energy is required to file federal and applicable state corporate income tax returns and recognizes income taxes on its pre-tax income (loss), which to-date has consisted primarily of its share of PBF LLC’s pre-tax income (loss) (approximately 99.2% and 99.0% as of March 31, 2020 and December 31, 2019, respectively). PBF LLC is organized as a limited liability company and PBFX is an MLP, both of which are treated as “flow-through” entities for federal income tax purposes and therefore are not subject to income taxes apart from the income tax attributable to the 2 subsidiaries acquired in connection with the acquisition of Chalmette Refining and PBF Holding’s wholly-owned Canadian subsidiary, PBF Energy Limited, that are treated as C-Corporations for income tax purposes.
The reported income tax provision in the PBF Energy Condensed Consolidated Statements of Operations consists of the following: 
Three Months Ended March 31,
(in millions)20202019
Current income tax expense$0.2  $2.0  
Deferred income tax (benefit) expense(374.8) 78.5  
Total income tax (benefit) expense$(374.6) $80.5  

The income tax provision is based on earnings (losses) before taxes attributable to PBF Energy and excludes earnings before taxes attributable to noncontrolling interests as such interests are generally not subject to income taxes except as noted above. The difference between PBF Energy’s effective income tax rate and the United States statutory rate is reconciled below:
Three Months Ended March 31,
20202019
Provision at Federal statutory rate21.0 %21.0 %
Increase (decrease) attributable to flow-through of certain tax adjustments:   
State income taxes (net of federal income tax)5.3 %5.0 %
Nondeductible/nontaxable items— %0.2 %
Rate differential from foreign jurisdictions(0.1)%(0.3)%
Other(0.2)%0.1 %
Effective tax rate26.0 %26.0 %
PBF Energy’s effective income tax rate for the three months ended March 31, 2020, including the impact of income attributable to noncontrolling interests of $3.4 million, was 26.1%. PBF Energy’s effective income tax rate for the three months ended March 31, 2019, including the impact of income attributable to noncontrolling interests of $12.2 million, was 25.0%.
41
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted and signed into law. The CARES Act includes several provisions for corporations, including increasing the amount of deductible interest, allowing companies to carryback certain Net Operating Losses (“NOLs”) and increasing the amount of NOLs that corporations can use to offset income. The CARES Act did not materially affect the Company’s first-quarter income tax provision, deferred tax assets and liabilities, and related taxes payable. The Company is currently assessing the future implications of these provisions within the CARES Act on its Consolidated Financial Statements.
The reported income tax provision in the PBF LLC Condensed Consolidated Statements of Operations consists of the following: 
Three Months Ended March 31,
(in millions)20202019
Current income tax expense$—  $—  
Deferred income tax expense (benefit)14.2  (7.2) 
Total income tax expense (benefit)$14.2  $(7.2) 

The Company has determined there are 0 material uncertain tax positions as of March 31, 2020. The Company does not have any unrecognized tax benefits.

42
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

16. FAIR VALUE MEASUREMENTS
The tables below present information about the Company'sCompany’s financial assets and liabilities measured and recorded at fair value on a recurring basis and indicate the fair value hierarchy of the inputs utilized to determine the fair values as of September 30, 2015March 31, 2020 and December 31, 2014.2019.
We haveThe Company has 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 haveThe Company has 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 haveThe Company has no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.Condensed Consolidated Balance Sheets.

As of March 31, 2020
Fair Value HierarchyTotal Gross Fair ValueEffect of Counter-party NettingNet Carrying Value on Balance Sheet
(in millions)Level 1Level 2Level 3
Assets:
Money market funds$101.3  $—  $—  $101.3  N/A  $101.3  
Commodity contracts—  9.9  —  9.9  (7.5) 2.4  
Derivatives included with inventory intermediation agreement obligations—  66.6  —  66.6  —  66.6  
Liabilities:
Commodity contracts1.1  6.4  —  7.5  (7.5) —  
Catalyst obligations—  35.9  —  35.9  —  35.9  
Contingent consideration obligation—  —  51.3  51.3  —  51.3  

As of December 31, 2019
Fair Value HierarchyTotal Gross Fair ValueEffect of Counter-party NettingNet Carrying Value on Balance Sheet
(in millions)Level 1Level 2Level 3
Assets:
Money market funds$111.8  $—  $—  $111.8  N/A  $111.8  
Commodity contracts32.5  1.5  —  34.0  (33.8) 0.2  
Liabilities:
Commodity contracts32.8  1.0  —  33.8  (33.8) —  
Catalyst obligations—  47.6  —  47.6  —  47.6  
Derivatives included with inventory intermediation agreement obligations—  1.3  —  1.3  —  1.3  

22
43
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

 As of September 30, 2015
 Fair Value Hierarchy Total Gross Fair Value Effect of Counter-party Netting Net Carrying Value on Balance Sheet
 Level 1 Level 2 Level 3  
Assets:           
Money market funds$342,414
 $—
 $—
 $342,414
 N/A
 $342,414
Marketable securities234,249
 —
 —
 234,249
 N/A
 234,249
Non-qualified pension plan assets9,441
 —
 —
 9,441
 N/A
 9,441
Commodity contracts148,907
 10,710
 838
 160,455
 (137,670) 22,785
Derivatives included with intermediation agreement obligations—
 44,684
 —
 44,684
 —
 44,684
Derivatives included with inventory supply arrangement obligations—
 1,031
 —
 1,031
 —
 1,031
Liabilities:           
Commodity contracts134,702
 1,945
 1,023
 137,670
 (137,670) —
Catalyst lease obligations—
 27,577
 —
 27,577
 —
 27,577
 As of December 31, 2014
 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$5,575
 $—
 $—
 $5,575
 N/A
 $5,575
Marketable securities234,930
 —
 —
 234,930
 N/A
 234,930
Non-qualified pension plan assets5,494
 —
 —
 5,494
 N/A
 5,494
Commodity contracts415,023
 12,093
 1,715
 428,831
 (397,676) 31,155
Derivatives included with inventory intermediation agreement obligations—
 94,834
 —
 94,834
 —
 94,834
Derivatives included with inventory supply arrangement obligations—
 4,251
 —
 4,251
 —
 4,251
Liabilities:           
Commodity contracts390,144
 7,338
 194
 397,676
 (397,676) —
Catalyst lease obligations—
 36,559
 —
 36,559
 —
 36,559

23
PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

The valuation methods used to measure financial instruments at fair value are as follows:
•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.
Marketable securities, consisting primarily of US Treasury securities, categorized in Level 1 of the fair value hierarchy are measured at fair value based on quoted market prices.
Non-qualified pension plan assets categorized in Level 1 of the fair value hierarchy are measured at fair value using a market approach based on published net asset values of mutual funds and included within Deferred charges and other assets, net.
•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 ofcommodity 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 supply arrangement obligations, 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.

•The contingent consideration obligation at March 31, 2020 is categorized in Level 3 of the fair value hierarchy and is estimated using discounted cash flow models based on management’s estimate of the future cash flows related to the earn-out periods. The change in fair value of the obligation during the three months ended March 31, 2020 was impacted primarily by the change in estimated future earnings related to the Martinez refinery during the earn-out period.

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 March 31, 2020 and December 31, 2019, $11.0 million and $10.3 million, 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 categorized in Level 3 of the fair value hierarchy:
(in millions)Three Months Ended March 31, 2020
Balance at beginning of period$26.1 
Additions77.3 
Accretion on discounted liabilities0.7 
Unrealized gain included in earnings(52.8)
Balance at end of period$51.3 
  Three Months Ended 
 September 30,		 Nine Months Ended 
 September 30,
  2015 2014 2015 2014
Balance at beginning of period $1,905
 $2,689
 $1,521
 $(23,365)
Purchases —
 —
 —
 —
Settlements (1,238) (9,020) (12,549) (5,353)
Unrealized gain included in earnings (852) 19,377
 10,843
 41,764
Transfers into Level 3 —
 —
 —
 —
Transfers out of Level 3 —
 —
 —
 —
Balance at end of period $(185) $13,046
 $(185) $13,046


There were no0 transfers between levels during the three and nine months ended September 30, 2015 and 2014,March 31, 2020 or 2019, respectively.



24
44
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

Fair value of debt
The table below summarizes the faircarrying value and carryingfair value of debt as of September 30, 2015March 31, 2020 and December 31, 2014.2019.
March 31, 2020December 31, 2019
(in millions)
Carrying
value
Fair
 value
Carrying
 value
Fair
value
2028 Senior Notes (a)$1,000.0  $670.9  $—  $—  
2025 Senior Notes (a)725.0  480.6  725.0  776.5  
2023 Senior Notes (b)—  —  500.0  519.7  
PBFX 2023 Senior Notes (a)527.1  302.4  527.2  543.0  
PBF Rail Term Loan (c)12.8  12.8  14.5  14.5  
PBFX Revolving Credit Facility (c)383.0  383.0  283.0  283.0  
Revolving Credit Facility (c)900.0  900.0  —  —  
Catalyst financing arrangements (d)35.9  35.9  47.6  47.6  
3,583.8  2,785.6  2,097.3  2,184.3  
Less - Current debt—  —  —  —  
Less - Unamortized deferred financing costs(37.7) n/a  (32.4) n/a  
Long-term debt$3,546.1  $2,785.6  $2,064.9  $2,184.3  
 September 30, 2015 December 31, 2014
 
Carrying
value
 
Fair
 value
 
Carrying
 value
 
Fair
value
Senior Secured Notes (a)$669,354
 $680,548
 $668,520
 $675,580
PBFX Senior Notes (a)350,000
 328,976
 —
 —
PBFX Term Loan (b)234,200
 234,200
 234,900
 234,900
Rail Facility (b)67,491
 67,491
 37,270
 37,270
PBFX Revolving Credit Facility (b)24,500
 24,500
 275,100
 275,100
Revolving Loan (b)—
 —
 —
 —
Catalyst leases (c)27,577
 27,577
 36,559
 36,559
 1,373,122
 1,363,292
 1,252,349
 1,259,409
Less - Current maturities—
 —
 —
 —
Long-term debt$1,373,122
 $1,363,292
 $1,252,349
 $1,259,409


(a) The estimated fair value, categorized as a Level 2 measurement, was calculated based on the present value of future expected payments utilizing implied current market interest rates based on quoted prices of the Senior Secured Notes and the PBFX Senior Notes.outstanding senior notes.
(b) As discussed in “Note 7 - Debt”, the 2023 Senior Notes were redeemed in full on February 14, 2020.
(c) 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)(d) Catalyst leasesfinancing arrangements 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'sCompany’s liability is directly impacted by the change in fair value of the underlying catalyst.


15.
17. DERIVATIVES
The Company uses derivative instruments to mitigate certain exposures to commodity price risk. The Company’s crude supply agreement containsCompany entered into the Inventory Intermediation Agreements that contain purchase obligations for certain volumes of crude oil, and other feedstocks. In addition, the Company entered into Inventory Intermediation Agreements commencing in July 2013 that contain purchase obligations for certain volumes of intermediates and refined products. The purchase obligations related to crude oil, feedstocks, 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 crude oil, intermediates and refined products. The level of activity for these derivatives is based on the level of operating inventories.

45
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

As of September 30, 2015,March 31, 2020, there were 238,3060 barrels of crude oil and feedstocks (662,579(27,580 barrels at December 31, 2014)2019) outstanding under these derivative instruments designated as fair value hedges and no barrels (no barrels at December 31, 2014) outstanding under these derivative instruments not designated as hedges. As of September 30, 2015,March 31, 2020, there were 3,130,7663,275,153 barrels of intermediates and refined products (3,106,325(3,430,635 barrels at December 31, 2014)2019) outstanding under these derivative instruments designated as fair value hedges and no barrels (no barrels at December 31, 2014) outstanding under these derivative instruments not designated as hedges. These volumes represent the notional value of the contract.


25
PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

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 September 30, 2015,March 31, 2020, there were 45,651,0003,500,000 barrels of crude oil and 2,277,0002,775,000 barrels of refined products (47,339,000(5,511,000 and 1,970,871,5,788,000, respectively, as of December 31, 2014)2019), outstanding under short and long term commodity derivative contracts not designated as hedges representing the notional value of the contracts.

The Company also uses derivative instruments to mitigate the risk associated with the price of credits needed to comply with various governmental and regulatory environmental compliance programs. For such contracts that represent derivatives, the Company elects the normal purchase normal sale exception under ASC 815, Derivatives and Hedging, and therefore does not record them at fair value.
The following tables provide information about the fair values of these derivative instruments as of September 30, 2015March 31, 2020 and December 31, 20142019 and the line items in the consolidated balance sheetCondensed Consolidated Balance Sheets in which the fair values are reflected.
Description
Balance Sheet Location		Fair Value
Asset/(Liability)
(in millions)
Derivatives designated as hedging instruments:
March 31, 2020:
Derivatives included with the inventory intermediation agreement obligationsAccrued expenses$66.6 
December 31, 2019:
Derivatives included with the inventory intermediation agreement obligationsAccrued expenses$(1.3)
Derivatives not designated as hedging instruments:
March 31, 2020:
Commodity contractsAccounts receivable$2.4 
December 31, 2019:
Commodity contractsAccounts receivable$0.2 

46
Description

Balance Sheet Location
Fair Value
Asset/(Liability)
Derivatives designated as hedging instruments:  
September 30, 2015:  
Derivatives included with inventory supply arrangement obligationsAccrued expenses$1,031
Derivatives included with the intermediation agreement obligationsAccrued expenses$44,684
December 31, 2014  
Derivatives included with inventory supply arrangement obligationsAccrued expenses$4,251
Derivatives included with the intermediation agreement obligationsAccrued expenses$94,834
   
Derivatives not designated as hedging instruments:  
September 30, 2015:  
Commodity contractsAccounts receivable$22,785
December 31, 2014  
Commodity contractsAccounts receivable$31,155

26
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

The following tables providetable provides information about the gaingains or losslosses recognized in income on these derivative instruments and the line items in the consolidated financial statementsCondensed Consolidated Statements of Operations in which such gains and losses are reflected.
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 September 30, 2015:  
Derivatives included with inventory supply arrangement obligationsCost of sales$1,409
Derivatives included with the intermediation agreement obligationsCost of sales$34,424
For the three months ended September 30, 2014:  
Derivatives included with inventory supply arrangement obligationsCost of sales$2,729
Derivatives included with the intermediation agreement obligationsCost of sales$20,900
For the nine months ended September 30, 2015:  
Derivatives included with inventory supply arrangement obligationsCost of sales$(3,220)
Derivatives included with the intermediation agreement obligationsCost of sales$(50,150)
For the nine months ended September 30, 2014:  
Derivatives included with inventory supply arrangement obligationsCost of sales$1,660
Derivatives included with the intermediation agreement obligationsCost of sales$29,942
   
Derivatives not designated as hedging instruments:  
For the three months ended September 30, 2015:  
Commodity contractsCost of sales$31,017
For the three months ended September 30, 2014:  
Commodity contractsCost of sales$70,624
For the nine months ended September 30, 2015:  
Commodity contractsCost of sales$(14,080)
For the nine months ended September 30, 2014:  
Commodity contractsCost of sales$101,902
   
Hedged items designated in fair value hedges:  
For the three months ended September 30, 2015:  
Crude oil and feedstock inventoryCost of sales$(1,409)
Intermediate and refined product inventoryCost of sales$(34,424)
For the three months ended September 30, 2014:  
Crude oil and feedstock inventoryCost of sales$(2,729)
Intermediate and refined product inventoryCost of sales$(20,900)
For the nine months ended September 30, 2015:  
Crude oil and feedstock inventoryCost of sales$3,220
Intermediate and refined product inventoryCost of sales$50,150
For the nine months ended September 30, 2014:  
Crude oil and feedstock inventoryCost of sales$(1,660)
Intermediate and refined product inventoryCost of sales$(29,942)
Description
Location of Gain or (Loss) Recognized in
 Income on Derivatives
Gain or (Loss)
Recognized in
Income on Derivatives
(in millions)
Derivatives designated as hedging instruments:
For the three months ended March 31, 2020:
Derivatives included with the inventory intermediation agreement obligationsCost of products and other$67.9 
For the three months ended March 31, 2019:
Derivatives included with the inventory intermediation agreement obligationsCost of products and other$(14.2)
Derivatives not designated as hedging instruments:
For the three months ended March 31, 2020:
Commodity contractsCost of products and other$78.2 
For the three months ended March 31, 2019:
Commodity contractsCost of products and other$31.7 
Hedged items designated in fair value hedges:
For the three months ended March 31, 2020:
Crude oil, intermediate and refined product inventoryCost of products and other$(67.9)
For the three months ended March 31, 2019:
Crude oil, intermediate and refined product inventoryCost of products and other$14.2 


The Company had no0 ineffectiveness related to the Company's fair value hedges for the three and nine months ended September 30, 2015 and 2014.March 31, 2020 or 2019, respectively.



27
47
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)

16.18. SEGMENT INFORMATION

The Company'sCompany’s operations are organized into two2 reportable segments, Refining and Logistics. Operations that are not included in the Refining and Logistics segments are included in Corporate. Intersegment transactions are eliminated in the consolidated financial statementsCondensed Consolidated Financial Statements and are included in Eliminations.

Refining
Refining
As of September 30, 2015, the Company 'sThe Company’s Refining Segmentsegment includes the operations of its three6 refineries, whichincluding certain related logistics assets that are not owned by PBFX. The Company’s refineries are located in Toledo, Ohio, Delaware City, Delaware, and Paulsboro, New Jersey.Jersey, Toledo, Ohio, Chalmette, Louisiana, Torrance, California and Martinez, California. The refineries produce unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. The Company purchases crude oil, other feedstocks and blending components from various third-party suppliers. The Company sells products throughout the Northeast, Midwest, Gulf Coast and MidwestWest Coast of the United States, as well as in other regions of the United States and Canada, and is able to ship products to other international destinations. As of September 30, 2015, the refineries have a combined processing capacity, known as throughput, of approximately 540,000 barrels per day ("bpd"), and a weighted-average Nelson Complexity Index of 11.3.

Logistics
The Company formedCompany’s Logistics segment is comprised of PBFX, a publicly traded master limited partnership,publicly-traded MLP, formed to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. PBFX'sPBFX’s assets primarily consist of (i) a rail terminal which has a double loop track and ancillary pumpingtruck terminals and unloading equipmentracks, tank farms and pipelines that were acquired from or contributed by PBF LLC and are located at, or nearby, the Delaware City refinery with an unloading capacity of approximately 130,000 bpd; (ii) a truck terminal comprised of six lease automatic custody transfer units accepting crude oil deliveries by truck located at the Toledo refinery designed for total throughput capacity of up to approximately 22,500 bpd; (iii) a heavy crude rail unloading rack located at the Delaware City refinery with an unloading capacity of at least 40,000 bpd; (iv) a tank farm with aggregate storage capacity of approximately 3.9 million barrels, including a propane storage and loading facility with throughput capacity of 11,000 bpd at the Toledo Refinery; (v) a 23.4 mile 16-inch interstate petroleum products pipeline with capacity in excess of 125,000 bpd at the Delaware City refinery and; (vi) a 15-lane, 76,000 bpd capacity truck loading rack utilized to distribute gasoline, distillates and liquefied petroleum gas at the Delaware City refinery.Company’s refineries. PBFX provides various rail, truck and truckmarine terminaling services, pipeline transportation services and storage services to PBF Holding and/or its subsidiaries and third-party customers through long-termfee-based commercial agreements. PBFX currently does not generate third party revenuesignificant third-party revenues and as such intersegment related-party revenues are eliminated in consolidation. PriorFrom a PBF Energy and PBF LLC perspective, the Company’s chief operating decision maker evaluates the Logistics segment as a whole without regard to the PBFX Offering, PBFX's assets were operated within the refining operationsany of the Company's Delaware City and Toledo refineries. The assets did not generate third party revenue and were not considered to be a separate reportable segment.

PBFX’s individual operating segments.
The Company evaluates the performance of its segments based primarily on income from operations. Income from operations includes those revenues and expenses that are directly attributable to management of the respective segment. The Logistics segment'ssegment’s revenues include inter-segmentintersegment transactions with the Company'sCompany’s Refining segment at prices the Company believes are substantially equivalent to the prices that could have been negotiated with unaffiliated parties with respect to similar services. Activities of the Company'sCompany’s business that are not included in the two2 operating segments are included in Corporate. Such activities consist primarily of corporate staff operations and other items that are not specific to the normal operations of the two2 operating segments. The Company does not allocate certain items of othernon-operating income and expense items, including income taxes, to the individual segments. The Refining segment’s operating subsidiaries and PBFX are primarily pass-through entities with respect to income taxes.

Disclosures regarding our reportable segments with reconciliations to consolidated totals for the three and nine months ended September 30, 2015 and September 30, 2014 are presented below. The Logistics segment's results include financial information of the predecessor of PBFX for periods prior to May 13, 2014, and the financial information of PBFX for the period beginning May 14, 2014, the completion date of the PBFX Offering. In connection with the contribution by PBF LLC of the DCR West Rack, the Toledo Storage Facility and the Delaware City Products Pipeline and Truck Rack, the accompanying segment information has been retrospectively adjusted to include the historical results of the DCR West Rack, Toledo Storage Facility and the Delaware City Products Pipeline and Truck Rack in the Logistics Segment for all periods presented prior to such contributions.

28
PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT AND BARREL DATA)


Prior to the PBFX Offering, the Company did not operate the PBFX assets independent of the Refining segment. Total assets of each segment consist of net property, plant and equipment, inventories, cash and cash equivalents, accounts receivables and other assets directly associated with the segment’s operations. Corporate assets consist primarily of deferred tax assets, property, plant and equipment and other assets not directly related to ourthe Company’s refinery and logisticlogistics operations.
Disclosures regarding the Company’s reportable segments with reconciliations to consolidated totals for the three months ended March 31, 2020 and March 31, 2019 are presented below. In connection with certain contributions by PBF LLC to PBFX, the accompanying segment information has been retrospectively adjusted to include the historical results of those assets in the Logistics segment for all periods presented prior to such contributions.

Three Months Ended September 30, 2015

Refining
Logistics
Corporate Eliminations
Consolidated Total
Revenues$3,217,640

$37,082

$—
 $(37,082)
$3,217,640
Depreciation and amortization expense44,366

1,649

2,118
 —

48,133
Income (loss) from operations114,925
 27,463
 (49,851) —
 92,537
Interest expense, net4,110
 7,180
 18,070
 —
 29,360
Capital expenditures81,969
 962
 573
 —
 83,504


48
 Three Months Ended September 30, 2014
 Refining Logistics Corporate Eliminations Consolidated Total
Revenues$5,260,003
 $17,060
 $—
 $(17,060) $5,260,003
Depreciation and amortization expense63,532
 1,177
 3,301
 —
 68,010
Income (loss) from operations316,244
 5,942
 (41,051) —
 281,135
Interest expense, net5,314
 827
 18,714
 —
 24,855
Capital expenditures110,340
 14,874
 32,642
 —
 157,856
 Nine Months Ended September 30, 2015
 Refining Logistics Corporate Eliminations Consolidated Total
Revenues$9,763,440
 $104,796
 $—
 $(104,796) $9,763,440
Depreciation and amortization expense131,817
 4,919
 7,665
 —
 144,401
Income (loss) from operations591,005
 71,914
 (123,530) —
 539,389
Interest expense, net13,387
 14,065
 52,731
 —
 80,183
Capital expenditures332,544
 1,182
 2,183
 —
 335,909
 Nine Months Ended September 30, 2014
 Refining Logistics Corporate  Eliminations Consolidated Total
Revenues$15,308,155
 $29,409
 $—
 $(29,409) $15,308,155
Depreciation and amortization expense122,858
 2,906
 10,123
 —
 135,887
Income (loss) from operations741,483
 4,491
 (116,785) —
 629,189
Interest expense, net20,404
 1,183
 55,141
 —
 76,728
 Capital expenditures250,701
 40,993
 39,050
 —
 330,744
 Balance at September 30, 2015
 Refining Logistics Corporate  Eliminations Consolidated Total
Total assets$4,062,727
 $432,663
 $74,486
 $(24,272) $4,545,604
 Balance at December 31, 2014
 Refining Logistics Corporate  Eliminations Consolidated Total
Total assets$4,135,494
 $410,141
 $24,195
 $(11,630) $4,558,200


29
PBF ENERGY INC. AND PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT, PER UNIT
Three Months Ended March 31, 2020
PBF Energy - (in millions)
RefiningLogisticsCorporateEliminationsConsolidated Total
Revenues$5,260.0  $93.0  $—  $(75.5) $5,277.5  
Depreciation and amortization expense105.4  11.3  2.9  —  119.6  
Income (loss) from operations(1,386.4) 47.7  (28.1) —  (1,366.8) 
Interest expense, net0.8  12.8  35.6  —  49.2  
Capital expenditures (1)1,304.1  6.1  5.0  —  1,315.2  

Three Months Ended March 31, 2019
RefiningLogisticsCorporate EliminationsConsolidated Total
Revenues$5,208.7  $78.8  $—  $(71.3) $5,216.2  
Depreciation and amortization expense94.3  8.7  2.8  —  105.8  
Income (loss) from operations (2)(3)389.5  34.2  (54.4) (4.7) 364.6  
Interest expense, net0.5  12.1  26.9  —  39.5  
Capital expenditures247.1  11.2  2.3  —  260.6  

Balance at March 31, 2020
RefiningLogisticsCorporate EliminationsConsolidated Total
Total assets$7,746.3  $1,088.7  $386.2  $(87.1) $9,134.1  

Balance at December 31, 2019
RefiningLogisticsCorporate EliminationsConsolidated Total
Total assets$8,154.8  $973.0  $52.7  $(48.1) $9,132.4  

Three Months Ended March 31, 2020
PBF LLC - (in millions)
RefiningLogisticsCorporateEliminationsConsolidated Total
Revenues$5,260.0  $93.0  $—  $(75.5) $5,277.5  
Depreciation and amortization expense105.4  11.3  2.9  —  119.6  
Income (loss) from operations(1,386.4) 47.7  (28.1) —  (1,366.8) 
Interest expense, net0.8  12.8  38.1  —  51.7  
Capital expenditures (1)1,304.1  6.1  5.0  —  1,315.2  

Three Months Ended March 31, 2019
RefiningLogisticsCorporate EliminationsConsolidated Total
Revenues$5,208.7  $78.8  $—  $(71.3) $5,216.2  
Depreciation and amortization expense94.3  8.7  2.8  —  105.8  
Income (loss) from operations (2)(3)389.5  34.2  (54.1) (4.7) 364.9  
Interest expense, net0.5  12.1  28.9  —  41.5  
Capital expenditures247.1  11.2  2.3  —  260.6  

Balance at March 31, 2020
RefiningLogisticsCorporate EliminationsConsolidated Total
Total assets$7,746.3  $1,088.7  $60.5  $(87.1) $8,808.4  

Balance at December 31, 2019
RefiningLogisticsCorporate EliminationsConsolidated Total
Total assets$8,154.8  $973.0  $49.4  $(48.1) $9,129.1  

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PBF ENERGY INC. AND BARREL DATA)

17. SUBSEQUENT EVENTS
Cash Distribution
On October 29, 2015, PBF Energy's Board of Directors declared a dividend of $0.30 per share on outstanding Class A common stock. The dividend was paid on November 24, 2015 to Class A common stockholders of record at the close of business on November 9, 2015. PBF LLC made an aggregate non-tax quarterly distribution of $30,818 or $0.30 per unit, pro rata, to its members, of which $29,297 was distributed to PBF Energy and the balance was distributed to its other members.

PBFX Distributions
On October 29, 2015, the Board of Directors of PBF GP declared a distribution of $0.39 per unit on outstanding common and subordinated units of PBFX. The distribution of $13,751 was paid on November 30, 2015 to PBFX unit holders of record at the close of business on November 13, 2015.

Chalmette Acquisition
On November 1, 2015, the Company acquired from ExxonMobil Oil Corporation, Mobil Pipe Line Company and PDV Chalmette, L.L.C. (collectively, the "Chalmette Sellers"), the ownership interests of Chalmette Refining, L.L.C. (“Chalmette Refining”), which owns the Chalmette refinery and related logistics assets (collectively, the "Chalmette Acquisition"). The Chalmette refinery, located outside of New Orleans, Louisiana, is a dual-train coking refinery and is capable of processing both light and heavy crude oil.
Chalmette Refining owns 100% of the MOEM Pipeline, providing access to the Empire Terminal, as well as the CAM Connection Pipeline, providing access to the Louisiana Offshore Oil Port facility through a third party pipeline. Chalmette Refining also owns 80% of each of the Collins Pipeline Company and T&M Terminal Company, both located in Collins, Mississippi, which provide a clean products outlet for the refinery to the Plantation and Colonial Pipelines. Also included in the acquisition are a marine terminal capable of importing waterborne feedstocks and loading or unloading finished products; a clean products truck rack which provides access to local markets; and a crude and product storage facility.
The aggregate purchase price for the Chalmette Acquisition was $322,000 in cash, plus estimated inventory and working capital of $233,083, which is subject to final valuation within ninety days of closing. The transaction was financed through a combination of cash on hand and borrowings under the Company’s existing revolving credit line. A determination of the acquisition-date fair values of the assets acquired and the liabilities assumed and the working capital at closing calculation is pending the completion of an independent appraisal and other evaluations.
The Chalmette Acquisition provides the Company with a broader more diversified asset base and increases the number of operating refineries from three to four and the Company's combined crude oil throughput capacity. The acquisition also provides the Company with a presence in the attractive Petroleum Administration for Defense Districts ("PADD") 3 market.

October 2015 Equity Offering
On October 13, 2015, the PBF Energy completed a public offering of an aggregate of 11,500,000 shares of Class A common stock, including 1,500,000 shares of Class A common stock that was sold pursuant to the exercise of an over-allotment option, for net proceeds of $344,000, after deducting underwriting discounts and commissions and other offering expenses (the "October 2015 Equity Offering"). In conjunction with the October 2015 Equity Offering, PBF Energy purchased an aggregate of 11,500,000 PBF LLC Series C Units.

Immediately following the October 2015 Equity Offering, PBF Energy owned 97,393,850 PBF LLC Series C Units and PBF Energy's executive officers and directors and certain employees beneficially owned 5,111,358 PBF LLC Series A Units, and the holders of PBF Energy's issued and outstanding shares of Class A common stock had 95.0% of the voting power in PBF Energy and the members of PBF LLC, other than PBF Energy, through their holdings of Class B common stock had the remaining 5.0% of the voting power in PBF Energy.


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PBF ENERGY COMPANY LLC AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT UNIT,
(1) The Refining segment includes capital expenditures of $1,176.2 million for the acquisition of the Martinez refinery in the first quarter of 2020.
(2) On April 24, 2019, PBFX entered into a contribution agreement with PBF LLC (the “TVPC Contribution Agreement”), pursuant to which PBF LLC contributed to PBFX all of the issued and outstanding limited liability company interests of TVP Holding Company LLC (“TVP Holding”) for a total consideration of $200.0 million (the “TVPC Acquisition”). Prior to the TVPC Acquisition, TVP Holding owned a 50% membership interest in Torrance Valley Pipeline Company LLC (“TVPC”). Subsequent to the closing of the TVPC Acquisition on May 31, 2019, PBFX owns 100% of the membership interests in TVPC.
(3) Prior to the TVPC Contribution Agreement, the Logistics segment included 100% of the income from operations of TVPC, as TVPC was consolidated by PBFX. PBFX recorded net income attributable to noncontrolling interest for the 50% equity interest in TVPC held by PBF Holding. PBF Holding (included in the Refining segment) recorded equity income in investee related to its 50% noncontrolling ownership interest in TVPC. For purposes of the Company’s Condensed Consolidated Financial Statements, PBF Holding’s equity income in investee and PBFX’s net income attributable to noncontrolling interest eliminated in consolidation.


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PBF ENERGY INC. AND PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

19. NET INCOME (LOSS) PER UNITSHARE OF PBF ENERGY
The Company grants certain equity-based compensation awards to employees and non-employee directors that are considered to be participating securities. Due to the presence of participating securities, the Company has calculated net income (loss) per share of PBF Energy Class A common stock using the two-class method.
The following table sets forth the computation of basic and diluted net income (loss) per share of PBF Energy Class A common stock attributable to PBF Energy for the periods presented:
(in millions, except share and per share amounts)Three Months Ended March 31,
Basic Earnings Per Share:20202019
Allocation of earnings:
Net income (loss) attributable to PBF Energy Inc. stockholders$(1,065.9) $229.2  
Less: Income allocated to participating securities0.1  0.1  
Income (loss) available to PBF Energy Inc. stockholders - basic$(1,066.0) $229.1  
Denominator for basic net income (loss) per Class A common share - weighted average shares119,380,210  119,880,915  
Basic net income (loss) attributable to PBF Energy per Class A common share$(8.93) $1.91  
Diluted Earnings Per Share:
Numerator:
Income (loss) available to PBF Energy Inc. stockholders - basic$(1,066.0) $229.1  
Plus: Net income attributable to noncontrolling interest (1)
—  3.1  
Less: Income tax expense (benefit) on net income attributable to noncontrolling interest (1)
—  (0.8) 
Numerator for diluted net income (loss) per PBF Energy Class A common share - net income (loss) attributable to PBF Energy Inc. stockholders (1)
$(1,066.0) $231.4  
Denominator:(1)
Denominator for basic net income (loss) per PBF Energy Class A common share-weighted average shares119,380,210  119,880,915  
Effect of dilutive securities:(2)
Conversion of PBF LLC Series A Units—  1,206,325  
Common stock equivalents—  1,088,504  
Denominator for diluted net income (loss) per PBF Energy Class A common share-adjusted weighted average shares119,380,210  122,175,744  
Diluted net income (loss) attributable to PBF Energy Inc. stockholders per PBF Energy Class A common share$(8.93) $1.89  

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PBF ENERGY INC. AND BARREL DATA)PBF ENERGY COMPANY LLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


7.0%(1) The diluted earnings per share calculation generally assumes the conversion of all outstanding PBF LLC Series A Units to PBF Energy Class A common stock. The net income (loss) attributable to PBF Energy used in the numerator of the diluted earnings per share calculation is adjusted to reflect the net income (loss), as well as the corresponding income tax expense (benefit) (based on a 26.3% estimated annualized statutory corporate tax rate for the three months ended March 31, 2020 and a 26.0% estimated annualized statutory corporate tax rate for the three months ended March 31, 2019), attributable to the converted units. During the three months ended March 31, 2020, the potential conversion of 1,208,798 PBF LLC Series A Units into PBF Energy Class A common stock were excluded from the denominator in computing diluted net income (loss) per share because including them would have had an anti-dilutive effect. As the potential conversion of the PBF LLC Series A Units and common stock equivalents were not included, the numerator used in the calculation of diluted net income (loss) per share was equal to the numerator used in the calculation of basic net income (loss) per share and does not include the net income (loss) and income tax attributable to the net income (loss) associated with the potential conversion of the PBF LLC Series A Units and common stock equivalents.

(2) Represents an adjustment to weighted-average diluted shares outstanding to assume the full exchange of common stock equivalents, including options and warrants for PBF LLC Series A Units and performance share units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive). Common stock equivalents exclude the effects of performance share units and options and warrants to purchase 11,388,905 and 5,111,617 shares of PBF Energy Class A common stock and PBF LLC Series A units because they were anti-dilutive for the three months ended March 31, 2020 and March 31, 2019, respectively. For periods showing a net loss, all common stock equivalents and unvested restricted stock are considered anti-dilutive.


20. SUBSEQUENT EVENTS
Sale of Hydrogen Plants
On April 17, 2020, the Company closed on the sale of 5 hydrogen plants to Air Products and Chemicals, Inc. for gross cash proceeds of $530.0 million. In connection with the sale, the Company has agreed to enter into long term off-take arrangements covering hydrogen produced at each of the five plants on terms in line with similar arrangements in place elsewhere in its refining system.
Revolver Credit Facility Amendment
On May 7, 2020, PBF Holding amended its Revolving Credit Facility to increase its ability to incur certain secured debt from an amount equal to 10% of its total assets to 20% of its total assets.
2025 Senior Secured Notes due 2023Offering
On November 24, 2015,May 13, 2020, PBF Holding completed the offering of $500,000issued $1.0 billion in aggregate principal amount of 7.0% Senior Secured Notes9.25% senior secured notes due 2023. The2025 for net proceeds of approximately $490,000,$987.5 million after deducting the initial purchasers’ discount and estimated offering expenses, are intended toexpenses. The proceeds from this notes issuance will be used for general corporate purposes, includingpurposes.
PBFX Distributions
On May 15, 2020, the Board of Directors of PBF GP announced a distribution of $0.30 per unit on outstanding common units of PBFX. The distribution is payable on June 17, 2020 to fund a portionPBFX unitholders of record at the purchase price for the pending acquisitionclose of the Torrance refinery and related assets.business on May 27, 2020.


Revolving Loan
In November 2015, PBF Holding increased the maximum availability under the Revolving Loan to $2,600,000 in accordance with its accordion feature.
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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unauditedaudited financial statements of PBF Energy and PBF LLC included in the Annual Report on Form 10-K for the year ended December 31, 2019 and the notes thereto included elsewhere in this report. The following information and such unaudited condensed consolidated financial statements should also be read in conjunction with the audited consolidated financial statements and related notes together with our discussion and analysis of financial condition and results of operations,included in our prospectus dated October 30, 2015, as filed with the SEC on October 30, 2015 (the “Prospectus”).this report. The following discussion contains “forward-looking statements” that reflect our future plans, estimates, beliefs and expected performance. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements as a result of a number of factors. We caution that assumptions, expectations, projections, intentions or beliefs about future events may, and often do, vary from actual results and the differences can be material. Please see “Cautionary Note Regarding Forward-Looking Statements.”
Unless the context otherwise requires, references to “PBF LLC,” “we,” “us,” “our” or the “Company” refer to PBF Energy Company LLC and its consolidated subsidiaries, including PBF Holding and PBFX. Unless the context otherwise requires, references to “PBF Energy” refer to PBF Energy Inc., PBF LLC's parent, and its consolidated subsidiaries.
PBF Energy is the sole managing member of, and owner of an equity interest representing approximately 99.2% of the outstanding economic interests in PBF LLC and operates and controls allas of the business and affairs of PBF LLC.March 31, 2020. PBF LLC is a holding company for the companies that directly orand indirectly own and operate PBF Energy’sour business. PBF Holding is a wholly-owned subsidiary of PBF LLC and PBF Finance is the parent company for our refining operations.a wholly-owned subsidiary of PBF Holding. As of March 31, 2020, PBF LLC consolidatesalso holds a 48.2% limited partner interest and a non-economic general partner interest in PBFX, a publicly-traded MLP.
Unless the financial results ofcontext indicates otherwise, the terms “we,” “us,” and “our” refer to PBF Energy and its consolidated subsidiaries, including PBF LLC, PBF Holding and its subsidiaries and PBFX and records a noncontrolling interest for the economic interestsits subsidiaries. Discussions on areas that either apply only to PBF Energy or PBF LLC are clearly noted in PBFX held by the public common unit holders of PBFX.such sections.


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Overview
We are one of the largest independent petroleum refiners and suppliers of unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. We sell our products throughout the Northeast, Midwest, Gulf Coast and MidwestWest Coast of the United States, as well as in other regions of the United States, Canada and Canada,Mexico and are able to ship products to other international destinations. We were formed in 2008 to pursue acquisitions of crude oil refineries and downstream assets in North America. As of September 30, 2015March 31, 2020, we ownedown and operated threeoperate six domestic oil refineries and related assets which we acquired in 2010 and 2011. Our refineries havewith a combined processing capacity, known as throughput, of approximately 540,0001,050,000 barrels per day ("bpd"(“bpd”), and a weighted-average Nelson Complexity Index of 11.3. On November 1, 2015 we closed on our acquisition12.8. We operate in two reportable business segments: Refining and Logistics. Our six oil refineries are all engaged in the refining of crude oil and other feedstocks into petroleum products, and are aggregated into the ownership interests of Chalmette Refining L.L.C. ("Chalmette Refining"). See Business Developments for additional information.segment. PBFX operates certain logistics assets such as crude oil and refined petroleum products terminals, pipelines, and storage facilities, which are aggregated into the Logistics segment.
As of September 30, 2015, our threeOur six refineries are located in Toledo, Ohio, Delaware City, Delaware, and Paulsboro, New Jersey. Our Mid-ContinentJersey, Toledo, Ohio, Chalmette, Louisiana, Torrance, California and Martinez, California. Each refinery at Toledo processes light, sweetis briefly described in the table below:
RefineryRegionNelson Complexity IndexThroughput Capacity (in bpd)PADD
Crude Processed (1)
Source (1)
Delaware CityEast Coast11.3  190,000  1  light sweet through heavy sour  water, rail  
PaulsboroEast Coast13.2  180,000  1  light sweet through heavy sour  water  
ToledoMid-Continent9.2  170,000  2  light sweet  pipeline, truck, rail  
ChalmetteGulf Coast12.7  189,000  3  light sweet through heavy sour  water, pipeline  
TorranceWest Coast14.9  155,000  5  medium and heavy  pipeline, water, truck  
MartinezWest Coast16.1  157,000  5  medium and heavy  pipeline and water  
________
(1) Reflects the typical crude has a throughput capacity of 170,000 bpd and a Nelson Complexity Index of 9.2. The majority of Toledo’s West Texas Intermediate ("WTI") based crude is delivered via pipelines that originate in both Canadafeedstocks and the United States. Since our acquisition of Toledo in 2011, we have added additional truckrelated sources utilized under normal operating conditions and rail crude unloading capabilities that provide feedstock sourcing flexibility for the refinery and enables Toledo to run a more cost-advantaged crude slate. Our East Coast refineries at Delaware City and Paulsboro have a combined refining capacity of 370,000 bpd and Nelson Complexity Indices of 11.3 and 13.2, respectively. These high-conversion refineries process primarily medium and heavy, sour crudes and have historically received the bulk of their feedstock via ships and barges on the Delaware River.
Since our acquisition of the Delaware City refinery, we expanded and upgraded the existing on-site railroad infrastructure, including the expansion of the crude rail unloading facilities. Currently, crude delivered by rail to this facility is consumed at our Delaware City refinery. We also transport some of the crude delivered by rail from Delaware City via barge to our Paulsboro refinery or other third party destinations. In 2014 we completed a project to expand the Delaware City heavy crude rail unloading terminal capability at the refinery from 40,000 bpd to 80,000 bpd and added additional unloading spots to the dual-loop track light crude rail unloading facility, which has increased its unloading capability from 105,000 bpd to 130,000 bpd. These projects bring total rail crude

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unloading capability up to 210,000 bpd, subject to the delivery of coiled and insulated railcars, the development of crude rail loading infrastructure in Canada and the use of unit trains. The Delaware City rail unloading facilities, including the facilities now owned by PBFX, allows our East Coast refineries to source WTI price-based crude oils from Western Canada and the Mid-Continent, which we believe at times may provide cost advantages versus traditional Brent based international crudes.prevailing market environments.
As of September 30, 2015,March 31, 2020, PBF Energy owned 85,893,850120,007,835 PBF LLC Series C Units and our current and former executive officers and directors and certain employees and others held 5,111,3581,019,916 PBF LLC Series A Units (we refer to all of the holders of the PBF LLC Series A Units as “the members of PBF LLC other than PBF Energy”). As a result, the holders of PBF Energy'sour issued and outstanding shares of our PBF Energy Class A common stock have approximately 94.4%99.2% of the voting power in us, and the members of PBF LLC other than PBF Energy through their holdings of Class B common stock have approximately 5.6%0.8% of the voting power in us. See "Business Developments - October 2015 Equity Offering."us (99.0% and 1.0% as of December 31, 2019, respectively).

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Business Developments
Recent significant business developments affecting the Companyus are discussed below.

COVID-19
Chalmette Acquisition
On November 1, 2015, the Company acquired from ExxonMobil Oil Corporation, Mobil Pipe Line Company and PDV Chalmette, L.L.C., the ownership interests of Chalmette Refining, which owns the Chalmette refinery and related logistics assets (collectively, the "Chalmette Acquisition"). The Chalmette refinery, located outside of New Orleans, Louisiana, is a 189,000 barrel per day, dual-train coking refinery with a Nelson Complexity of 12.7 and is capable of processing both light and heavy crude oil.
Chalmette Refining owns 100%recent outbreak of the MOEM Pipeline, providing access toCOVID-19 pandemic and certain developments in the Empire Terminal,global oil markets are negatively impacting worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products. The COVID-19 pandemic and related governmental responses have also resulted in significant business and operational disruptions, including business closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the CAM Connection Pipeline, providing accessavailability of workforces and has resulted in significantly lower demand for refined petroleum products. We believe, but cannot guarantee, that demand for refined petroleum products will ultimately rebound as governmental restrictions are lifted. However, the ultimate significance of the COVID-19 pandemic on our business will be dictated by its currently unknowable duration and the rate at which people are willing and able to resume activities even after governmental restrictions are lifted. In addition, recent global geopolitical and macroeconomic events have further contributed to the Louisiana Offshore Oil Port facilitydecline in crude oil prices and the overall volatility in crude oil and refined product prices.
The price of refined products we sell and the crude oil we purchase impacts our revenues, income from operations, net income and cash flows. In addition, a decline in the market prices for products and feedstocks held in our inventories below the carrying value of our inventory may result in the adjustment of the value of our inventories to the lower market price and a corresponding loss on the value of our inventories, and any such adjustment is likely to be material.
We are actively responding to the impacts from these matters on our business. In late March and through aearly April 2020, we started reducing the amount of crude oil processed at our refineries in response to the decreased demand for our products and we temporarily idled various units at certain of our refineries to optimize our production in light of prevailing market conditions.
We have adjusted our operational plans to the evolving market conditions and previously announced steps to lower our 2020 operating expenses budget through significant reductions in discretionary activities and third party pipeline. Chalmette Refining also owns 80%services. In March 2020, we estimated that these efforts would result in a reduction in our operating expenses budget of eachapproximately $125.0 million. We have subsequently identified additional reductions and currently estimate an aggregate reduction of the Collins Pipeline Companyapproximately $140.0 million in our 2020 operating expenses budget. In addition, we are currently operating our refineries at minimum rates and T&M Terminal Company, both located in Collins, Mississippi, which provide a clean products outlet for the refineryexpect near-term throughput to the Plantation and Colonial Pipelines. Also includedbe in the acquisition are a marine terminal capable of importing waterborne feedstocks and loading or unloading finished products; a clean products truck rack which provides access650,000 to local markets; and a crude and product storage facility with approximately 7.5 million barrels of shell capacity.
The aggregate purchase price700,000 barrel per range for our refining system. As the Chalmette Acquisition was $322.0 million in cash, plus inventory and working capital of $233.1 million, which is subject to final valuation within ninety days of closing. The transaction was financed through a combination of cash on hand and borrowings under the Company’s existing revolving credit line. A determination of the acquisition-date fair values of the assets acquiredmarket conditions develop and the liabilities assumed and the working capital at closing calculation is pending the completion of an independent appraisal and other evaluations.
The Chalmette Acquisition provides the Company with a broader more diversified asset base and increases the number of operating refineries from threedemand outlook becomes clearer, we will continue to four and the Company's combined crude oil throughput capacity from 540,000 bpd to approximately 730,000 bpd. The acquisition also provides the Company with a presenceadjust our operations in the attractive Petroleum Administration for Defense Districts ("PADD") 3 market.

Pending Torrance Acquisition
On September 29, 2015, PBF Holding entered into a definitive Sale and Purchase Agreement (the “Torrance Sale and Purchase Agreement”) with ExxonMobil Oil Corporation and its subsidiary, Mobil Pacific Pipeline Company (together, the "Torrance Sellers"), to purchase the Torrance refinery, and related logistics assets (collectively, the "Torrance Acquisition"). The Torrance refinery, located on 750 acres in Torrance, California, is a high-conversion 155,000 barrel per day, delayed-coking refinery with a Nelson Complexity of 14.9. The facility is strategically positioned in Southern California with advantaged logistics connectivity that offers flexible raw material sourcing and product distribution opportunities primarily in the California, Las Vegas and Phoenix area

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markets. Including the estimated contribution of the Chalmette refinery, the Torrance Acquisition will further increase the Company's total throughput capacity to approximately 900,000 bpd.response.
In addition to refining assets, the Torrance Acquisition includessteps above with respect to our operations, we are also addressing our liquidity. We are taking the following measures, some of which were previously announced in March 2020:
•Raised net proceeds of approximately $987.5 million through the May 13, 2020 issuance of $1.0 billion in aggregate principal amount of 9.25% senior secured notes due 2025 (the “2025 Senior Secured Notes”);
•Closed on the sale of five hydrogen plants for gross cash proceeds of $530.0 million on April 17, 2020;
•Reduced 2020 planned capital expenditures by approximately $240.0 million. We subsequently identified additional reductions in capital expenditures and currently estimate an aggregate reduction of approximately $357.0 million in 2020 planned capital expenditures, an approximate 49% reduction to our previous 2020 budget. We intend to satisfy all required safety, environmental and regulatory capital commitments, while continuing to explore further opportunities to minimize our near-term capital expenditure requirements;
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•Established a numbercompany wide COVID-19 Response Team and increased precautions to keep our employees healthy and safe, including social distancing, additional personal protective equipment and enhanced facility cleanings. We have not had to temporarily close any of high-quality logistics assets includingour refineries due to a sophisticated networkCOVID-19 outbreak;
•Reduced corporate overhead expenses by over $20.0 million on an annual basis primarily through salary reductions. Specifically, the Board of crudeDirectors of PBF Energy and products pipelines, product distribution terminalsmanagement have reduced their compensation by 50%, while Chairman and refinery crudeCEO Thomas Nimbley’s salary has been reduced by 67%. In addition, more than 50% of our corporate and product storage facilities. The most significantnon-represented employees have also reduced their salaries;
•Suspended PBF Energy’s quarterly dividend of the logistics assets is a 171-mile crude gathering$0.30 per share, anticipated to preserve approximately $35.0 million of cash each quarter; and transportation system which delivers San Joaquin Valley crude oil directly from the field to the refinery. Additionally, included in the transaction are several pipelines which provide access to sources of crude oil including the Ports of Long Beach
•Evaluating various other liquidity and Los Angeles, as well as clean product outlets with a direct pipeline supplying jet fuel to the Los Angeles airport. The Torrance refinery also has crude and product storage facilities with approximately 8.6 million barrels of shell capacity.cash flow optimization options.
The purchase price for the Torrance Acquisition is $537.5 million, plus inventory and working capital to be valued at closing. The purchase price is also subject to other customary purchase price adjustments. The Torrance Acquisition is expected to close in the second quarter of 2016, subject to satisfaction of customary closing conditions. Additionally, as a condition of closing, the Torrance refinery is to be restored to full working orderMany uncertainties remain with respect to the eventCOVID-19 pandemic, including the extent to which the COVID-19 pandemic will continue to impact our business and operations, the effectiveness of the actions undertaken by national, regional, state and local governments and health officials to contain the virus or treat its effects, and how quickly and to what extent economic conditions improve and normal business and operating conditions resume. We are unable to predict the ultimate economic impacts from the COVID-19 pandemic, however, we have been and will likely continue to be adversely impacted. We believe, to the extent possible, we have proactively addressed many of the known impacts of the COVID-19 pandemic and will strive to continue to do so, but there can be no guarantee that occurredthese measures will be effective.
Refer to “Liquidity” and “Part II - Other Information - Item 1A. Risk Factors” for further information.
Sale of Hydrogen Plants
On April 17, 2020, we closed on the sale of five hydrogen plants to Air Products and Chemicals, Inc. for gross cash proceeds of $530.0 million. In connection with the sale we have agreed to enter into long-term off-take arrangements covering hydrogen produced at each of the five plants on terms in line with similar arrangements in place elsewhere in our refining system.
Receivables Purchase Agreement
On February 18, 2015 resulting in damage to the electrostatic precipitator and related systems, and shall have operated as required under the Torrance Sale and Purchase Agreement for a period of at least fifteen days after such restoration. We expect to finance the transaction with a combination of cash on hand, debt, including the proceeds from the issuance of the 7.0% Senior Secured Notes due 2023, and proceeds contributed to us2020, in connection with PBF Energy's equity offering completed on October 13, 2015. In addition, PBF Energy has guaranteed all paymentthe entry into a $300.0 million uncommitted receivables purchase facility (the “Receivables Facility”), we amended the asset-based revolving credit agreement (“Revolving Credit Facility”) and performance obligationsentered into a related intercreditor agreement to allow us to sell certain Eligible Receivables (as defined in the agreement governing the Revolving Credit Facility (the “Revolving Credit Agreement”) derived from the sale of PBF Holding that relaterefined product over truck racks. Under the Receivables Facility, we sell such receivables to or arise out of the Sale and Purchase Agreement related to the Torrance Acquisition. Following the expected completion of the Torrance Acquisition, our weighted average Nelson Complexity Index will increase to 12.2.

October 2015 Equity Offering
On October 13, 2015, PBF Energy completed a public offering of an aggregate of 11,500,000 shares of Class A common stock, including 1,500,000 shares of Class A common stock that was sold pursuant to the exercise of an over-allotment option, for net proceeds of $344.0 million, after deducting underwriting discounts and commissions and other offering expenses (the “October 2015 Equity Offering”). In conjunction with the October 2015 Equity Offering, PBF Energy purchased an aggregate of 11,500,000 PBF LLC Series C Units. We intend to use the proceeds to fund a portion of the purchase price for the Torrance Acquisition. However,bank subject to the timing of the closing of the Torrance Acquisition, we may use the net proceeds of the October 2015 Equity Offering to pay down indebtedness incurred to fund the Chalmette Acquisition (or for capital in lieu of indebtedness we might otherwise borrow).
As a result of the October 2015 Equity Offering, PBF Energy now owns 97,393,850 PBF LLC Series C Units and PBF Energy’s executive officers and directorsbank approval and certain employees beneficially own 5,111,358 PBF LLC Series A Units, and the holdersconditions. The sales of PBF Energy’s issued and outstanding shares of Class A common stock have 95.0% of the voting power in PBF Energy and the members of PBF LLC other than PBF Energy through their holdings of Class B common stock have the remaining 5.0% of the voting power in PBF Energy.

7.0% Senior Secured Notes due 2023
On November 24, 2015, PBF Holding completed the offering of $500 million aggregate principal amount of 7.0% Senior Secured Notes due 2023. The net proceeds of approximately $490 million, after deducting the initial purchasers’ discount and estimated offering expenses, are intended to be used for general corporate purposes, including to fund a portion of the purchase price for the pending Torrance Acquisition.

Revolving Loan
In November 2015 the Company increased the maximum availabilityreceivables under the Revolving LoanReceivables Facility are absolute and irrevocable but subject to $2.6 billion in accordance with its accordion feature.certain repurchase obligations under certain circumstances.



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Factors Affecting Comparability Between Periods
Our results have been affected by the following events, the understanding of which must be understoodwill aid in order to assessassessing the comparability of our period to period financial performance and financial condition.

COVID-19
Initial Public OfferingThe impact of PBFXthe unprecedented global health and economic crisis sparked by the COVID-19 pandemic was amplified late in the quarter ended March 31, 2020 due to movements made by the world’s largest oil producers to increase market share in the current environment. This created simultaneous shocks in oil supply and demand resulting in an economic challenge to our industry which has not occurred since our formation. This combination has resulted in significant demand reduction for our refined products and abnormal volatility in oil commodity prices, which may continue for the foreseeable future. Our results for the quarter ending March 31, 2020 were impacted by the decreased demand for refined products and the significant decline in the price of crude oil, both of which negatively impacted our revenues, cost of products sold and operating income towards the end of the quarter and lowered our liquidity. Throughput rates across our refining system also decreased, most significantly towards the end of the quarter, and we are currently operating our refineries at minimum rates. Refer to “Item 1A. Risk Factors” included in “Part II - Other Information” of this Form 10-Q for further information.
Debt and Credit Facilities
Senior Notes
On MayJanuary 24, 2020, we issued $1.0 billion in aggregate principal amount of 6.00% senior unsecured notes due 2028 (the "2028 Senior Notes"). The net proceeds from this offering were approximately $987.0 million after deducting the initial purchasers’ discount and estimated offering expenses. We used the proceeds primarily to fully redeem our 7.00% senior notes due 2023 (the “2023 Senior Notes”) and to fund a portion of the cash consideration for the Martinez Acquisition (as defined below).
On February 14, 2014, 2020, we exercised our rights under the indenture governing the 2023 Senior Notes to redeem all of the outstanding 2023 Senior Notes at a price of 103.5% of the aggregate principal amount thereof plus accrued and unpaid interest. The aggregate redemption price for all 2023 Senior Notes approximated $517.5 million plus accrued and unpaid interest. The difference between the carrying value of the 2023 Senior Notes on the date they were redeemed and the amount for which they were redeemed was $22.2 million and has been classified as Debt extinguishment costs in the Condensed Consolidated Statement of Operations as of March 31, 2020.
Refer to “Note 7 - Debt” of our Notes to Condensed Consolidated Financial Statements, for further information.
Revolving Credit Facility
During the three months ended March 31, 2020, we used advances under our Revolving Credit Facility to fund a portion of the Martinez Acquisition (as defined below) and other general corporate purposes. The outstanding borrowings under the Revolving Credit Facility as of March 31, 2020 were $900.0 million. There were no outstanding borrowings under the Revolving Credit Facility as of December 31, 2019.
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Martinez Acquisition
On February 1, 2020, we acquired from Equilon Enterprises LLC d/b/a Shell Oil Products US (the "Seller"), the Martinez refinery and related logistics assets (collectively, the "Martinez Acquisition"), pursuant to a sale and purchase agreement dated June 11, 2019 (the “Sale and Purchase Agreement”). The Martinez refinery is located on an 860-acre site in the City of Martinez, 30 miles northeast of San Francisco, California. The refinery is a high-conversion 157,000 bpd, dual-coking facility with a Nelson Complexity Index of 16.1, making it one of the most complex refineries in the United States. The facility is strategically positioned in Northern California and provides for operating and commercial synergies with the Torrance refinery located in Southern California. The Martinez Acquisition further increased our total throughput capacity to over 1,000,000 bpd.
In addition to refining assets, the Martinez Acquisition includes a number of high-quality onsite logistics assets including a deep-water marine facility, product distribution terminals and refinery crude and product storage facilities with approximately 8.8 million barrels of shell capacity.
The aggregate purchase price for the Martinez Acquisition was $1,253.4 million, including final working capital of $216.1 million and the obligation to make post-closing earn-out payments to the Seller based on certain earnings thresholds of the Martinez refinery (as set forth in the Sale and Purchase Agreement), for a period of up to four years following the closing date (the “Martinez Contingent Consideration”). The transaction was financed through a combination of cash on hand, including proceeds from the 2028 Senior Notes, and borrowings under the Revolving Credit Facility.
Inventory Intermediation Agreements
On August 29, 2019, we and our subsidiaries, Delaware City Refining Company LLC (“DCR”) and Paulsboro Refining Company LLC (“PRC”), entered into amended and restated inventory intermediation agreements with J. Aron (as amended from time to time, the “Inventory Intermediation Agreements”), pursuant to which certain terms of the Inventory Intermediation Agreements were amended and restated, including, among other things, the maturity date. The Inventory Intermediation Agreement by and among J. Aron, PBF Holding and PRC was extended to December 31, 2021, which term may be further extended by mutual consent of the parties to December 31, 2022 and the Inventory Intermediation Agreement by and among J. Aron, PBF Holding and DCR was extended to June 30, 2021, which term may be further extended by mutual consent of the parties to June 30, 2022.
Pursuant to each Inventory Intermediation Agreement, J. Aron continues to purchase and hold title to the J. Aron Products, produced by the East Coast Refineries, and delivered into our J. Aron Storage Tanks. Furthermore, J. Aron agrees to sell the J. Aron Products back to the East Coast Refineries as the J. Aron Products are discharged out of our J. Aron Storage Tanks. J. Aron has the right to store the J. Aron Products purchased in tanks under the Inventory Intermediation Agreements and will retain these storage rights for the term of the agreements. PBF Holding continues to market and sell the J. Aron Products independently to third parties.
PBFX completed its initialEquity Offering
On April 24, 2019, PBFX entered into subscription agreements to sell an aggregate of 6,585,500 common units to certain institutional investors in a registered direct public offering (the “PBFX“2019 Registered Direct Offering”) for gross proceeds of 15,812,500 common units, including 2,062,500 common units issued upon exerciseapproximately $135.0 million. The 2019 Registered Direct Offering closed on April 29, 2019.
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PBFX Assets and Transactions
PBFX’s assets consist of various logistics assets. Apart from business associated with certain third-party acquisitions, PBFX’s revenues are derived from long-term, fee-based commercial agreements with subsidiaries of PBF Holding, which include minimum volume commitments, for receiving, handling, transferring and storing crude oil, refined products and natural gas. These transactions are eliminated by PBF Energy and PBF LLC in consolidation.
Since the over-allotment option that was granted to the underwriters, at a price to the publicinception of $23.00 per unit. On September 30,PBFX in 2014, PBF LLC completedand PBFX have entered into a transaction to contribute toseries of drop-down transactions. Such transactions and third-party acquisitions made by PBFX in the Delaware City heavy crude unloading rack ("DCR West Rack") for total consideration of $150.0 million, consisting of $135.0 million of cash and $15.0 million ofcurrent or prior periods are discussed below.
TVPC Acquisition
On April 24, 2019, PBFX common units, or 589,536 common units (the "DCR West Rack Acquisition"). On December 11, 2014,entered into a contribution agreement with PBF LLC, completed a transactionpursuant to contribute to PBFX the tank farm and related facilities located at our Toledo refinery, including a propane storage and loading facility (the "Toledo Storage Facility") for total consideration of $150.0 million, consisting of $135.0 million of cash and $15.0 million of PBFX common units, or 620,935 common units (the "Toledo Storage Facility Acquisition"). On May 14, 2015which PBF LLC contributed to PBFX all of the issued and outstanding limited liability company interests of Delaware PipelineTVP Holding Company LLC ("DPC"(“TVP Holding”) and Delaware City Logistics Company LLC ("DCLC"), whose assets consist of a products pipeline, truck rack and related facilities located at our Delaware City refinery (collectively the "Delaware City Products Pipeline and Truck Rack"), for total consideration of $143.0$200.0 million consisting of $112.5 million of cash and $30.5 million of PBFX common units, or 1,288,420 common units.
As of September 30, 2015, PBF LLC holds(the “TVPC Acquisition”). Prior to the TVPC Acquisition, TVP Holding owned a 53.7% limited partner50% membership interest in PBFX (consisting of 2,572,944 common units and 15,886,553 subordinated units), with the remaining 46.3% limited partner interest held by the public unit holders. PBF LLC also owns all of the incentive distribution rights and indirectly owns a non-economic general partner interest in PBFX through its wholly-owned subsidiary, PBF Logistics GP LLC (“PBF GP”), the general partner of PBFX. During the subordination period (as set forth in the partnership agreement of PBFX) holders of the subordinated units are not entitled to receive any distribution of available cash until the common units have received the minimum quarterly distribution plus any arrearages in the payment of the minimum quarterly distribution from prior quarters. If PBFX does not pay distributions on the subordinated units, the subordinated units will not accrue arrearages for those unpaid distributions. Each subordinated unit will convert into one common unit at the end of the subordination period.
PBFX is a fee-based, growth-oriented, Delaware master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. PBFX engages in the receiving, handling and transferring of crude oil and the receipt, storage and delivery of crude oil, refined products and intermediates. PBFX’s assets consist of a light crude oil rail unloading terminal at the Delaware City refinery that also services the Paulsboro refinery (which we refer to as the “Delaware City Rail Terminal”), a crude oil truck unloading terminal at the Toledo refinery (which we refer to as the “Toledo Truck Terminal”), the DCR West Rack, the Toledo Storage Facility and the Delaware City ProductsTorrance Valley Pipeline and Truck Rack. All of PBFX’s revenue is derived from long-term, fee-based commercial agreements with subsidiaries of PBF LLC, which include minimum volume commitments, for receiving, handling, transferring and storing crude oil and refined products. These transactions are eliminated by PBF LLC in consolidation.
Secondary Offerings
On February 6, 2015, PBF Energy completed a public offering of 3,804,653 shares of Class A common stock in a secondary offering (the "February 2015 secondary offering"). All of the shares in the February 2015 secondary offering were sold by funds affiliated with Blackstone Group L.P., or Blackstone, and First Reserve Management, L.P., or First Reserve. In connection with the February 2015 secondary offering, Blackstone and First Reserve exchanged all of their remaining PBF LLC Series A Units for an equivalent number of shares of Class A common stock of PBF Energy, and as a result, Blackstone and First Reserve no longer hold any PBF LLC Series A Units or shares of PBF Energy's Class A common stock. The holders of PBF LLC Series B Units, which include certain executive officers of PBF Energy and others, received a portion of the proceeds of the sale of the

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PBF Energy Class A common stock by Blackstone and First Reserve in accordance with the amended and restated limited liability company agreement of PBF LLC. PBF Energy did not receive any proceeds from the February 2015 secondary offering. In addition, in January, March and June of 2014, PBF Energy also completed three separate secondary offerings for a total of 48,000,000 shares of Class A common stock. All such shares were sold by funds affiliated with Blackstone and First Reserve.
Rail Facility Revolving Credit Facility
Effective March 25, 2014, PBF Rail Logistics Company LLC (“PBF Rail”), an indirect wholly-owned subsidiary of PBF Holding, entered into a $250.0 million secured revolving credit agreement (the “Rail Facility”TVPC”). The primary purpose of the Rail Facility isSubsequent to fund the acquisition by PBF Rail of coiled and insulated crude tank cars and non-coiled and non-insulated general purpose crude tank cars (the "Eligible Railcars") before December 2015. The amount available to be advanced under the Rail Facility equals 70% of the lesser of the aggregate Appraised Value of the Eligible Railcars, or the aggregate Purchase Price of such Eligible Railcars, as these terms are defined in the credit agreement.
On April 29, 2015, the Rail Facility was amended to, among other things, extend the maturity to April 29, 2017, reduce the total commitment from $250.0 million to $150.0 million, and reduce the commitment fee on the unused portion of the Rail Facility. At any time prior to maturity PBF Rail may repay and re-borrow any advances without premium or penalty. On the first anniversary of the closing of the amendment,TVPC Acquisition on May 31, 2019, PBFX owns 100% of the advance rate adjusts automatically to 65%membership interests in TVPC. The transaction was financed through a combination of proceeds from the 2019 Registered Direct Offering and borrowings under the PBFX five-year, $500.0 million amended and restated revolving credit facility (the “PBFX Revolving Credit Facility”).
PBFX Debt and Credit FacilitiesIDR Restructuring
On May 14, 2014, in connectionFebruary 28, 2019, PBFX closed on the transaction contemplated by the Equity Restructuring Agreement with PBF LLC and PBF GP, pursuant to which PBFX’s incentive distribution rights (the “IDRs”) held by PBF LLC were canceled and converted into 10,000,000 newly issued PBFX common units (the “IDR Restructuring”). Subsequent to the closing of the PBFX Offering, PBFX entered into a five-year, $275.0 million revolving credit facility (the "PBFX Revolving Credit Facility") and a three-year, $300.0 million term loan (the "PBFX Term Loan"). The PBFX Revolving Credit Facility was increased from $275.0 million to $325.0 million in December 2014. The PBFX Revolving Credit Facility is available to fund working capital, acquisitions,IDR Restructuring, no distributions and capital expenditures and for other general partnership purposes and is guaranteed by a guaranty of collection from PBF LLC. PBFX also has the ability to increase the maximum amount of the PBFX Revolving Credit Facility by an aggregate amount of up to $275.0 million, to a total facility size of $600.0 million, subject to receiving increased commitments from lenders or other financial institutions and satisfaction of certain conditions. The PBFX Revolving Credit Facility includes a $25.0 million sublimit for standby letters of credit and a $25.0 million sublimit for swingline loans. The PBFX Term Loan was used to fund distributionswere made to PBF LLC and is guaranteed by a guaranty of collection from PBF LLC and secured at all times by cash, U.S. Treasury or other investment grade securities in an amount equal to or greater than the outstanding principal amount of the PBFX Term Loan.
On May 12, 2015, PBFX entered into an Indenture among the Partnership, PBF Logistics Finance Corporation, a Delaware corporation and wholly-owned subsidiary of PBFX ("PBF Logistics Finance," and together with PBFX, the "Issuers"), the Guarantors named therein (certain subsidiaries of PBFX) and Deutsche Bank Trust Company Americas, as Trustee, under which the Issuers issued $350.0 million in aggregate principal amount of 6.875% Senior Notes due 2023 (the "PBFX Senior Notes"). PBF LLC has provided a limited guarantee of collection of the principal amount of the PBFX Senior Notes, but is not otherwise subjectrespect to the covenants ofIDRs and the Indenture. Of the $350.0 million aggregatenewly issued PBFX Senior Notes, $19.9 million were purchasedcommon units are entitled to normal distributions by certain of PBF Energy’s officers and directors and their affiliates pursuant to a separate private placement transaction. After deducting offering expenses, PBFX received net proceeds of approximately $343.0 million from the PBFX Senior Notes offering.PBFX.
J. Aron Intermediation Agreements
On May 29, 2015, PBF Holding entered into amended and restated inventory intermediation agreements (the "A&R Intermediation Agreements") with J. Aron & Company ("J. Aron") pursuant to which certain terms of the existing inventory intermediation agreements were amended, including, among other things, pricing and an extension of the term for a period of two years from the original expiry date of July 1, 2015, subject to certain

36

early termination rights. In addition, the A&R Intermediation Agreements include one-year renewal clauses by mutual consent of both parties.
Pursuant to each A&R Intermediation Agreement, J. Aron will continue to purchase and hold title to certain of the intermediate and finished products (the "Products") produced by the Paulsboro and Delaware City refineries (the "Refineries"), respectively, and delivered into tanks at the Refineries. Furthermore, J. Aron agrees to sell the Products back to Paulsboro refinery and Delaware City refinery as the Products are discharged out of the Refineries' tanks. J. Aron has the right to store the Products purchased in tanks under the A&R Intermediation Agreements and will retain these storage rights for the term of the agreements. PBF Holding will continue to market and sell the Products independently to third parties.
Crude Oil Acquisition Agreement Termination
Effective July 31, 2014, PBF Holding terminated the Amended and Restated Crude Oil Acquisition Agreement, dated as of March 1, 2012 as amended (the "Toledo Crude Oil Acquisition Agreement") with Morgan Stanley Capital Group, Inc. ("MSCG").  Under the terms of the Toledo Crude Oil Acquisition Agreement, we previously acquired substantially all of our crude oil for our subsidiary's Toledo refinery from MSCG through delivery at various interstate pipeline locations. No early termination penalties were incurred by us as a result of the termination. We began sourcing our own crude oil needs for Toledo upon termination.

Results of Operations
The tables below reflect our consolidated financial and operating highlights for the three and nine months ended September 30, 2015March 31, 2020 and 20142019 (amounts in thousands)millions, except per share data). Differences between the results of operations of PBF Energy and PBF LLC primarily pertain to income taxes, interest expense and noncontrolling interest as shown below. Earnings per share information applies only to the financial results of PBF Energy. We operate in two reportable business segments: Refining and Logistics. Our three oil refineries, excluding the assets owned by PBFX, are all engaged in the refining of crude oil and other feedstocks into petroleum products, and are aggregated into the Refining segment. PBFX is a publicly traded master limited partnershippublicly-traded MLP that operates logisticalcertain logistics assets such as crude oil and refined petroleum products terminals, pipelines and storage facilities. PBFX'sPBFX’s operations are aggregated into the Logistics segment. Prior to the PBFX Offering, DCR West Rack acquisition, Toledo Tank Farm acquisition and the Delaware City Products Pipeline and Truck Rack acquisition, PBFX's assets were operated within the refining operations of our Delaware City and Toledo refineries and wereWe do not considered to be a separate reportable segment. We did not analyzeseparately discuss our results by individual segmentsegments as, apart from PBFX’s third-party acquisitions, our Logistics segment doesdid not have any third party revenuesignificant third-party revenues and substantially alla significant portion of its operating results eliminate in consolidation. Additionally, third party expenses attributable directly to the Logistics segment are immaterial relative to our consolidated operating results.


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 Three Months Ended 
 September 30,		 Nine Months Ended 
 September 30,
 2015 2014 2015 2014
Revenue$3,217,640
 $5,260,003
 $9,763,440
 $15,308,155
Cost of sales, excluding depreciation2,822,444
 4,670,908
 8,319,404
 13,754,048

395,196
 589,095
 1,444,036
 1,554,107
Operating expenses, excluding depreciation203,860
 202,625
 635,948
 682,246
General and administrative expenses50,808
 37,307
 125,431
 106,947
(Gain) loss on sale of assets(142) 18
 (1,133) (162)
Depreciation and amortization expense48,133
 68,010
 144,401
 135,887
Income from operations92,537
 281,135
 539,389
 629,189
Change in fair value of catalyst leases4,994
 5,543
 8,982
 1,204
Interest expense, net(29,360) (24,855) (80,183) (76,728)
Net income68,171
 261,823
 468,188
 553,665
Less: net income attributable to noncontrolling interests9,381
 4,637
 26,608
 7,328
Net income attributable to PBF LLC$58,790
 $257,186
 $441,580
 $546,337
        
Gross margin$150,815
 $322,084
 $686,401
 $746,567
        
Gross refining margin (1)$359,231
 $574,351
 $1,349,017
 $1,531,581
PBF EnergyThree Months Ended March 31,
20202019
Revenues$5,277.5  $5,216.2  
Cost and expenses:
Cost of products and other5,963.3  4,209.2  
Operating expenses (excluding depreciation and amortization expense as reflected below)531.7  479.0  
Depreciation and amortization expense116.7  103.0  
Cost of sales6,611.7  4,791.2  
General and administrative expenses (excluding depreciation and amortization expense as reflected below)82.5  57.6  
Depreciation and amortization expense2.9  2.8  
Change in fair value of contingent consideration(52.8) —  
Total cost and expenses6,644.3  4,851.6  
Income (loss) from operations(1,366.8) 364.6  
Other income (expense):
Interest expense, net(49.2) (39.5) 
Change in Tax Receivable Agreement liability(11.6) —  
Change in fair value of catalyst obligations11.7  (3.1) 
Debt extinguishment costs(22.2) —  
Other non-service components of net periodic benefit cost1.0  (0.1) 
Income (loss) before income taxes(1,437.1) 321.9  
Income tax (benefit) expense(374.6) 80.5  
Net income (loss)(1,062.5) 241.4  
Less: net income attributable to noncontrolling interests3.4  12.2  
Net income (loss) attributable to PBF Energy Inc. stockholders$(1,065.9) $229.2  
Consolidated gross margin$(1,334.2) $425.0  
Gross refining margin (1)
$(773.4) $932.5  
Net income (loss) available to Class A common stock per share:
Basic$(8.93) $1.91  
Diluted$(8.93) $1.89  

(1)See Non-GAAP Financial Measures below.

(1) See Non-GAAP Financial Measures.

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Operating Highlights
PBF LLCThree Months Ended March 31,
20202019
Revenues$5,277.5  $5,216.2  
Cost and expenses:
Cost of products and other5,963.3  4,209.2  
Operating expenses (excluding depreciation and amortization expense as reflected below)531.7  479.0  
Depreciation and amortization expense116.7  103.0  
Cost of sales6,611.7  4,791.2  
General and administrative expenses (excluding depreciation and amortization expense as reflected below)82.5  57.3  
Depreciation and amortization expense2.9  2.8  
Change in fair value of contingent consideration(52.8) —  
Total cost and expenses6,644.3  4,851.3  
Income (loss) from operations(1,366.8) 364.9  
Other income (expense):
Interest expense, net(51.7) (41.5) 
Change in fair value of catalyst obligations11.7  (3.1) 
Debt extinguishment costs(22.2) —  
Other non-service components of net periodic benefit cost1.0  (0.1) 
Income (loss) before income taxes(1,428.0) 320.2  
Income tax expense (benefit)14.2  (7.2) 
Net income (loss)(1,442.2) 327.4  
Less: net income attributable to noncontrolling interests18.0  9.0  
Net income (loss) attributable to PBF Energy Company LLC$(1,460.2) $318.4  


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Three Months Ended 
 September 30,		 Nine Months Ended 
 September 30,
Operating HighlightsOperating HighlightsThree Months Ended March 31,
2015 2014 2015 201420202019
Key Operating Information        Key Operating Information
Production (bpd in thousands)473.2
 496.8
 473.4
 465.3
Production (bpd in thousands)867.0  737.7  
Crude oil and feedstocks throughput (bpd in thousands)475.4
 495.5
 478.1
 465.9
Crude oil and feedstocks throughput (bpd in thousands)852.9  743.1  
Total crude oil and feedstocks throughput (millions of barrels)43.7
 45.6
 130.5
 127.2
Total crude oil and feedstocks throughput (millions of barrels)77.6  66.9  
Consolidated gross margin per barrel of throughputConsolidated gross margin per barrel of throughput$(17.19) $6.35  
Gross refining margin, excluding special items, per barrel of throughput (1)$12.97
 $12.60
 $10.95
 $12.04
Gross refining margin, excluding special items, per barrel of throughput (1)
$6.60  $6.38  
Refinery operating expenses, excluding depreciation, per barrel of throughput$4.57
 $4.41
 $4.79
 $5.34
Refinery operating expense, per barrel of throughputRefinery operating expense, per barrel of throughput$6.54  $6.78  
       
Crude and feedstocks (% of total throughput) (2):
       
Heavy crude9% 12% 12% 13%
Medium crude54% 43% 50% 44%
Light crude26% 34% 27% 34%
Crude and feedstocks (% of total throughput) (2)
Crude and feedstocks (% of total throughput) (2)
HeavyHeavy44 %32 %
MediumMedium23 %32 %
LightLight19 %24 %
Other feedstocks and blends11% 11% 11% 9%Other feedstocks and blends14 %12 %
Total throughputTotal throughput100 %100 %
       
Yield (% of total throughput):
       
Yield (% of total throughput)Yield (% of total throughput)
Gasoline and gasoline blendstocks48% 46% 47% 47%Gasoline and gasoline blendstocks51 %46 %
Distillates and distillate blendstocks34% 36% 35% 36%Distillates and distillate blendstocks32 %32 %
Lubes1% 2% 2% 2%Lubes1 %1 %
Chemicals3% 3% 3% 3%Chemicals1 %2 %
Other14% 13% 13% 12%Other17 %18 %
Total yieldTotal yield102 %99 %
       



(1)See Non-GAAP Financial Measures below.
(2)We define heavy crude oil as crude oil with an American Petroleum Institute (API) gravity less than 24 degrees.     We define medium crude oil as crude oil with an API gravity between 24 and 35 degrees. We define light crude oil as crude oil with an API gravity higher than 35 degrees.


(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.
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The table below summarizes certain market indicators relating to our operating results as reported by Platts.
Three Months Ended March 31,
20202019
(dollars per barrel, except as noted)
Dated Brent crude oil$49.70  $63.26  
West Texas Intermediate (WTI) crude oil$45.56  $54.87  
Light Louisiana Sweet (LLS) crude oil$47.81  $62.38  
Alaska North Slope (ANS) crude oil$51.07  $64.39  
Crack Spreads
Dated Brent (NYH) 2-1-1$9.96  $9.85  
WTI (Chicago) 4-3-1$7.37  $12.33  
LLS (Gulf Coast) 2-1-1$10.42  $9.89  
ANS (West Coast-LA) 4-3-1$13.36  $13.54  
ANS (West Coast-SF) 3-2-1$9.65  $11.14  
Crude Oil Differentials
Dated Brent (foreign) less WTI$4.14  $8.39  
Dated Brent less Maya (heavy, sour)$8.87  $4.50  
Dated Brent less WTS (sour)$4.70  $9.55  
Dated Brent less ASCI (sour)$4.29  $2.35  
WTI less WCS (heavy, sour)$16.85  $9.96  
WTI less Bakken (light, sweet)$3.46  $(0.25) 
WTI less Syncrude (light, sweet)$1.80  $(0.04) 
WTI less LLS (light, sweet)$(2.25) $(7.51) 
WTI less ANS (light, sweet)$(5.51) $(9.52) 
Natural gas (dollars per MMBTU)$1.87  $2.87  
 Three Months Ended 
 September 30,		 Nine Months Ended 
 September 30,
 2015 2014 2015 2014
 (dollars per barrel, except as noted)
Dated Brent Crude$50.36
 $101.93
 $55.54
 $106.52
West Texas Intermediate (WTI) crude oil$46.45
 $97.56
 $50.93
 $99.77
Crack Spreads       
Dated Brent (NYH) 2-1-1$17.60
 $13.91
 $17.75
 $13.07
WTI (Chicago) 4-3-1$24.03
 $16.63
 $20.09
 $17.40
Crude Oil Differentials       
Dated Brent (foreign) less WTI$3.91
 $4.36
 $4.61
 $6.75
Dated Brent less Maya (heavy, sour)$7.60
 $11.06
 $8.12
 $14.52
Dated Brent less WTS (sour)$2.29
 $13.14
 $4.14
 $13.95
Dated Brent less ASCI (sour)$5.08
 $5.02
 $4.43
 $7.39
WTI less WCS (heavy, sour)$14.52
 $20.06
 $11.58
 $20.70
WTI less Bakken (light, sweet)$3.26
 $6.43
 $3.49
 $4.98
WTI less Syncrude (light, sweet)$1.02
 $4.12
 $(1.19) $1.97
Natural gas (dollars per MMBTU)$2.73
 $3.95
 $2.76
 $4.41
Three Months Ended September 30, 2015March 31, 2020 Compared to the Three Months Ended September 30, 2014March 31, 2019
Overview— Net income PBF Energy net loss was $68.2$1,062.5 million for the three months ended September 30, 2015March 31, 2020 compared to net income of $261.8$241.4 million for the three months ended September 30, 2014. Net income attributable toMarch 31, 2019. PBF LLC net loss was $58.8$1,442.2 million for the three months ended September 30, 2015March 31, 2020 compared to net income of $327.4 million for the three months ended March 31, 2019. Net loss attributable to PBF Energy stockholders was $1,065.9 million, or $(8.93) per diluted share, for the three months ended March 31, 2020 ($8.93 per share on a fully-exchanged, fully-diluted basis based on adjusted fully-converted net loss, or $(1.19) per share on a fully-exchanged, fully-diluted basis based on adjusted fully-converted net loss excluding special items, as described below in Non-GAAP Financial Measures) compared to net income attributable to PBF LLCEnergy stockholders of $257.2$229.2 million, or $1.89 per diluted share, for the three months ended September 30, 2014. TheMarch 31, 2019 ($1.89 per share on a fully-exchanged, fully-diluted basis based on adjusted fully-converted net income, or $(1.18) per share on a fully-exchanged, fully-diluted basis based on adjusted fully-converted net loss excluding special items, as described below in Non-GAAP Financial Measures). The net loss attributable to PBF LLC includesEnergy stockholders represents PBF LLC’sEnergy’s equity interest in its operating subsidiaries' net income.PBF LLC’s pre-tax loss, less applicable income tax expense. PBF Energy’s weighted-average equity interest in PBF LLC was 99.0% and 99.0% for the three months ended March 31, 2020 and 2019, respectively.
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Our results for the three months ended September 30, 2015March 31, 2020 were negatively impacted by a non-cash special itemitems consisting of a non-cash, inventorypre-tax lower of cost or market ("LCM"(“LCM”) inventory adjustment of approximately $208.3$1,285.6 million, onor $947.5 million net of tax, a pre-tax change in the Tax Receivable Agreement liability of $11.6 million, or $8.5 million net basis, which includesof tax and pre-tax debt extinguishment costs associated with the reversalearly redemption of our 2023 Senior Notes of $22.2 million, or $16.4 million net of tax. These unfavorable impacts were partially offset by the change in the fair value of the contingent consideration primarily related to the Martinez Acquisition of $52.8 million, or $38.9 million net of tax. Our results for the three months ended March 31, 2019 were positively impacted by a non-cash pre-tax LCM chargeinventory adjustment of approximately $506.0 million, or $374.4 million net of tax. The LCM inventory adjustments were recorded due to movements in the second quarterprice of 2015. The LCM adjustment is a result of the changing crude oil and refined product prices fromproducts in the second quarter of 2015 to the end of the third quarter of 2015. During this period the prices have remained below historical costs. periods presented.
Excluding the impact of the net change in LCM reserve of $208.3 million,these special items, our results were positively impacted by favorable movements in certain crude differentials and overall higher crack spreadsthroughput volumes and barrels sold across our refineries, offset by lower margins in certain regions. Refining margins for the three months ended March 31, 2020 compared to the three months ended March 31, 2019 were mixed with stronger margins on the East Coast and Mid-Continent partiallyGulf Coast offset by unfavorable movementsweaker margins in the Mid-Continent and West Coast. Our results for the three months ended March 31, 2020 were negatively impacted by higher general and administrative expenses associated with higher employee-related compensation and transaction costs and increased depreciation and amortization expense associated with our continued investment in our refining assets. Additionally, during the quarter we began to experience the negative impacts of the COVID-19 pandemic on our business through a decline in the demand for our refined products and a precipitous decrease in the prices for crude oil differentials and refined products.
Revenues— Revenues totaled $5.3 billion for the impactthree months ended March 31, 2020 compared to $5.2 billion for the three months ended March 31, 2019, an increase of approximately $0.1 billion, or 1.9%. Revenues per barrel were $57.89 and $66.19 for the three months ended March 31, 2020 and 2019, respectively, a decrease of 12.5% directly related to lower hydrocarbon commodity prices. For the three months ended March 31, 2020, the total throughput rates at our East Coast, Mid-Continent, Gulf Coast and West Coast refineries averaged approximately 329,300 bpd, 90,100 bpd, 174,500 bpd and 259,000 bpd, respectively. For the three months ended March 31, 2019, the total throughput rates at our East Coast, Mid-Continent, Gulf Coast and West Coast refineries averaged approximately 305,000 bpd, 148,000 bpd, 164,600 bpd and 125,500 bpd, respectively. For three months ended March 31, 2020, the total barrels sold at our East Coast, Mid-Continent, Gulf Coast and West Coast refineries averaged approximately 365,300 bpd, 131,300 bpd, 213,800 bpd and 291400 bpd, respectively. For the three months ended March 31, 2019, the total barrels sold at our East Coast, Mid-Continent, Gulf Coast and West Coast refineries averaged approximately 349,200 bpd, 158,000 bpd, 215,600 bpd and 152,800 bpd, respectively.
The throughput rates at the majority of our refineries were higher in the three months ended March 31, 2020 compared to the same period in 2019 due to planned downtime associated with turnarounds of the coker and associated units at our Delaware City and Torrance refineries and unplanned downtime at our Delaware City refinery in August 2015 and planned turnaround at our Delaware City refinery in September 2015 which reduced throughput and increased operating expenses.
Revenues— Revenues totaled $3.2 billion for the three months ended September 30, 2015 compared to $5.3 billion for the three months ended September 30, 2014, a decreasefirst quarter of approximately $2.0 billion, or 38.8%. For the three months ended September 30, 2015, the total throughput rates in the East Coast and Mid-Continent refineries averaged approximately 301,800 bpd and 173,600 bpd, respectively. For the three months ended September 30, 2014, the total throughput rates at our East Coast and Mid-Continent refineries averaged approximately 344,100 bpd and 151,400 bpd, respectively. The decline in throughput rates at our East Coast refineries in 2015 compared to 2014 is primarily due to unplanned downtime at our Delaware City refinery in August 2015 and a planned turnaround in September 2015 at our Delaware City refinery. The increase in throughput2019. Throughput rates at our Mid-Continent refinery were lower in 2015the three months ended March 31, 2020 compared to 2014 was primarily attributablethe same period in 2019 due to favorable market conditionsa planned turnaround at our Toledo refinery induring the thirdfirst quarter of 2015. For2020. Our Martinez refinery was not acquired until the three months ended September 30, 2015, the

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total barrels sold at our East Coast and Mid-Continent refineries averaged approximately 355,400 bpd and 179,700 bpd, respectively. For the three months ended September 30, 2014, the total barrels sold at our East Coast and Mid-Continent refineries averaged approximately 365,200 bpd and 154,400 bpd, respectively.first quarter of 2020. Total refined product barrels sold were higher than throughput rates, reflecting sales from inventory as well as sales and purchases of refined products outside the refinery.our refineries.
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Consolidated Gross Margin— Consolidated gross margin totaled $(1,334.2) million for the three months ended March 31, 2020, compared to $425.0 million for the three months ended March 31, 2019, a decrease of approximately $1,759.2 million. Gross refining margin (as described below in Non-GAAP Financial Measures) totaled $359.2$(773.4) million, or $8.21 per barrel of throughput ($567.5 million or $12.97 per barrel of throughput excluding the impact of special items), for the three months ended September 30, 2015 compared to $574.4 million, or $12.60 per barrel of throughput during the three months ended September 30, 2014, a decrease of $215.2 million. Gross margin, including refinery operating expenses and depreciation, totaled $150.8 million, or $3.45$(9.96) per barrel of throughput for the three months ended September 30, 2015March 31, 2020 compared to $322.1$932.5 million, or $7.10$13.94 per barrel of throughput for the three months ended September 30, 2014,March 31, 2019, a decrease of $171.3approximately $1,705.9 million. Excluding the impact ofGross refining margin excluding special items gross margin and gross refining margin increased duetotaled $512.2 million or $6.60 per barrel of throughput for the three months ended March 31, 2020 compared to improved crack spreads in$426.5 million or $6.38 per barrel of throughput for the East Coast and the Mid-Continent partially offset by unfavorable movements in crude differentials in both the East Coast and the Mid-Continent and lower throughput rates at our East Coast refineries. In addition,three months ended March 31, 2019, an increase of $85.7 million.
Consolidated gross margin and gross refining margin were negatively impacted by a non-cash LCM adjustment of approximately $208.3$1,285.6 million on a net basis resulting from the changedecrease in crude oil and refined product prices from the end of the second quarter of 2015year ended 2019 to the end of the thirdfirst quarter of 2015, which remained below historical costs.2020. Gross refining margin excluding the impact of special items increased due to favorable movements in certain crude differentials and refining margins and increased throughput rates in the majority of our refineries, partially offset by lower throughput rates and weaker crack spreads in the Mid-Continent and West Coast. For the three months ended March 31, 2019, special items impacting our margin calculations included a non-cash LCM inventory adjustment of approximately $506.0 million on a net basis, resulting from an increase in crude oil and refined product prices.
Additionally, our results continue to be impacted by significant costs to comply with the Renewable Fuel Standard (“RFS”). Total RFS costs were $36.8 million for the three months ended March 31, 2020 in comparison to $29.5 million for the three months ended March 31, 2019.
Average industry refining margins in the Mid-Continent were strongermixed during the three months ended September 30, 2015 as comparedMarch 31, 2020 in comparison to the same period in 2014. The WTI (Chicago) 4-3-1 industry crack spread was approximately $24.03 per barrel or 44.5% higher2019, primarily due to varying timing and extent of the impacts of the COVID-19 pandemic on regional demand and commodity prices. Crude oil differentials were generally favorable in the three months ended September 30, 2015 as comparedcomparison to $16.63 per barrel in the same period in 2014.2019. However, our margins were negatively impacted from our refinery specific crude slatesuch differentials weakened towards the end of the quarter, primarily due to the negative impact of the COVID-19 pandemic, combined with the movements made by the world’s largest oil producers to increase market share in the Mid-Continent which was impacted by a declining WTI/Syncrude differential, which averaged approximately $1.02 per barrelcurrent environment, creating simultaneous shocks in oil supply and demand.
On the third quarter of 2015 as compared to $4.12 per barrel inEast Coast, the third quarter of 2014.
The Dated Brent (NYH) 2-1-1 industry crack spread was approximately $17.60$9.96 per barrel, or 26.5%1.1% higher, in the three months ended September 30, 2015March 31, 2020, as compared to $13.91$9.85 per barrel in the same period in 2014. The WTI/Dated Brent differential and2019. Our margins were positively impacted from our refinery specific slate on the East Coast by stronger Dated Brent/Maya and WTI/Bakken differentials, were $0.45which increased by $4.37 per barrel and $3.46$3.71 per barrel, respectively, in comparison to the same period in 2019. In addition, the WTI/WCS differential increased significantly to $16.85 per barrel in 2020 compared to $9.96 in 2019, which favorably impacted our cost of heavy Canadian crude.
Across the Mid-Continent, the WTI (Chicago) 4-3-1 industry crack spread was $7.37 per barrel, or 40.2% lower, respectively, in the three months ended September 30, 2015March 31, 2020 as compared to $12.33 per barrel in the same period in 2014. In addition,2019. Our margins were positively impacted from our refinery specific slate in the Mid-Continent by an increasing WTI/Bakken differential, was approximately $3.17which averaged a discount of $3.46 per barrel less favorable in the three months ended September 30, 2015March 31, 2020, as compared to a premium of $0.25 per barrel in the same period in 2014.2019. Additionally, the WTI/Syncrude differential averaged a discount of $1.80 per barrel during the three months ended March 31, 2020 as compared to a premium of $0.04 per barrel in the same period of 2019.
On the Gulf Coast, the LLS (Gulf Coast) 2-1-1 industry crack spread was $10.42 per barrel, or 5.4% higher, in the three months ended March 31, 2020 as compared to $9.89 per barrel in the same period in 2019. Margins on the Gulf Coast were positively impacted from our refinery specific slate by a strengthening WTI/LLS differential, which averaged a premium of $2.25 per barrel during the three months ended March 31, 2020 as compared to a premium of $7.51 per barrel in the same period of 2019.
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On the West Coast, the ANS (West Coast) 4-3-1 industry crack spread was $13.36 per barrel, or 1.3% lower, in the three months ended March 31, 2020 as compared to $13.54 per barrel in the same period in 2019. Additional, margins on the West Coast were positively impacted from our refinery specific slate by a strengthening WTI/ANS differential, which averaged a premium of $5.51 per barrel during the three months ended March 31, 2020 as compared to a premium of $9.52 per barrel in the same period of 2019.
Favorable movements in these benchmark crude differentials typically result in lower crude costs and positively impact our earnings while reductions in these benchmark crude differentials typically result in higher crude costs and negatively impact our earnings.
Operating Expenses— Operating expenses totaled $203.9$531.7 million for the three months ended September 30, 2015March 31, 2020 compared to $202.6$479.0 million for the three months ended September 30, 2014,March 31, 2019, an increase of $1.3approximately $52.7 million, or 0.6%11.0%. Of the total $203.9$531.7 million of operating expenses for the three months ended September 30, 2015, $200.0March 31, 2020, $507.5 million or $4.57$6.54 per barrel of throughput, related to expenses incurred by the Refining segment, while the remaining $3.8$24.2 million related to expenses incurred by the Logistics segment. The increasesegment ($453.4 million or $6.78 per barrel of throughput, and $25.6 million of operating expenses for the three months ended March 31, 2019 related to the Refining and Logistics segments, respectively). Increases in operating expenses waswere mainly attributableattributed to $11.9costs associated with the Martinez refinery and related logistic assets which totaled approximately $69.5 million in higherfor the three months ended March 31, 2020. Total operating expenses for the three months ended March 31, 2020, excluding our Martinez refinery, decreased slightly due to lower outside service costs attributed to lower maintenance activity and repairthe initiation of our cost optimization measures. Operating expenses related to our Logistics segment decreased when compared to the unplanned downtime at our Delaware City refinery and $2.5 million of higher employee wage and benefits expenses which were predominantly offset by a decrease of $13.0 millionsame period in energy related costs2019 due to decreased utility expenses coinciding with lower natural gasthroughput at certain PBFX assets and electricity prices. Our operating expenses principally consist of salaries and employee benefits, maintenance, energy and catalyst and chemicals costs at our refineries. The operating expenses related to the Logistics segment consists of costs related to the operation and maintenance of PBFX's assets subsequent to the PBFX Offering.lower environmental clean-up remediation costs.
General and Administrative Expenses— General and administrative expenses totaled $50.8 million for the three months ended September 30, 2015 compared to $37.3$82.5 million for the three months ended September 30, 2014,March 31, 2020 compared to $57.6 million for the three months ended March 31, 2019, an increase of $13.5approximately $24.9 million or 36.2%43.2%. The increase in general and administrative expenses for the three months ended March 31, 2020 in comparison to the three months ended March 31, 2019 primarily relatesrelated to higher employeeemployee-related expenses, including incentive compensation costs and administrative expensesincreased headcount. Additionally, we experienced higher professional fees primarily related to PBFX.information technology support and transaction and integration costs pertaining to the Martinez Acquisition. Our general and administrative expenses are comprised of the personnel, facilities and other infrastructure costs necessary to support our refineries.refineries and related logistics assets.


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Gain on Sale of Assets— Gain on sale of assets for the three months ended September 30, 2015 was $0.1 million related to the sale of railcars which were subsequently leased back.
Depreciation and Amortization Expense— Depreciation and amortization expense totaled $48.1$119.6 million for the three months ended September 30, 2015March 31, 2020 (including $116.7 million recorded within Cost of sales) compared to $68.0$105.8 million for the three months ended September 30, 2014, a decreaseMarch 31, 2019 (including $103.0 million recorded within Cost of $19.9sales), an increase of approximately $13.8 million. The decreaseincrease was primarily a result of an impairment charge of $28.5 million incurredadditional depreciation expense associated with the assets acquired in the thirdMartinez Acquisition and a general increase in our fixed asset base due to capital projects and turnarounds completed since the first quarter of 2014 partially offset by capital projects related to turnarounds completed2019.
Change in 2014,Fair Value of Contingent Consideration— Change in the completed expansionfair value of contingent consideration was a gain of $52.8 million for the three months ended March 31, 2020. This change primarily represents the decrease in the estimated fair value of the crude rail unloading facility attotal Martinez Contingent Consideration we expect to pay in connection with our acquisition of the Delaware City refineryMartinez refinery. There were no such costs in 2014 and refinery optimization projects at Toledo.the same period of 2019.
Change in Tax Receivable Agreement Liability— Change in Tax Receivable Agreement liability for the three months ended March 31, 2020 represented a loss of $11.6 million. There was no change in the Tax Receivable Agreement liability for the three months ended March 31, 2019.
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Change in Fair Value of Catalyst LeasesObligations— Change in the fair value of catalyst leasesobligations represented a gain of $5.0$11.7 million for the three months ended September 30, 2015March 31, 2020 compared to a gainloss of $5.5$3.1 million for the three months ended September 30, 2014.March 31, 2019. These gains and losses relate to the change in value of the precious metals underlying the sale and leaseback of our refineries’ precious metals catalyst,metal catalysts, which we are obligated to repurchase at fair market value on the lease termination dates.
Debt Extinguishment Costs— Debt extinguishment costs of $22.2 million incurred in the three months ended March 31, 2020 relate to early redemption of our 2023 Senior Notes. There were no such costs in the same period of 2019.
Interest Expense, net— InterestPBF Energy interest expense totaled $29.4$49.2 million for the three months ended September 30, 2015March 31, 2020 compared to $24.9$39.5 million for the three months ended September 30, 2014,March 31, 2019, an increase of $4.5approximately $9.7 million. This net increase is mainly attributable to higher interest cost associated with the issuance of the PBFX2028 Senior Notes in February 2020 and the related amortization of deferred financing fees. This increase was offset by decreases in interest expense relateddrawdown on our Revolving Credit Facility to partially fund the termination of our crudeMartinez Acquisition and feedstock supply agreement with MSCG, effective July 31, 2014.other general corporate purposes. Interest expense includes interest on long-term debt including the PBFX credit facilities, costs related to the sale and leaseback of our precious metals catalyst, interest expense incurred in connection with our crude and feedstock supply agreement with Statoil,metal catalysts, financing costs associated with the Inventory Intermediation Agreements with J. Aron, letter of credit fees associated with the purchase of certain crude oils and the amortization of deferred financing costs. PBF LLC interest expense totaled $51.7 million and $41.5 million for the three months ended March 31, 2020 and March 31, 2019, respectively (inclusive of $2.5 million and $2.0 million, respectively, of incremental interest expense on the affiliate note payable with PBF Energy that eliminates in consolidation at the PBF Energy level).
Income Tax Expense— PBF LLC is organized as a limited liability company and PBFX is an MLP, both of which are treated as “flow-through” entities for federal income tax purposes and therefore are not subject to income tax. However, two subsidiaries of Chalmette Refining and our Canadian subsidiary are treated as C-Corporations for income tax purposes and may incur income taxes with respect to their earnings, as applicable. The members of PBF LLC are required to include their proportionate share of PBF LLC’s taxable income or loss, which includes PBF LLC’s allocable share of PBFX’s pre-tax income or loss, on their respective tax returns. PBF LLC generally makes distributions to its members, per the terms of PBF LLC’s amended and restated limited liability company agreement, related to such taxes on a pro-rata basis. PBF Energy recognizes an income tax expense or benefit in our Condensed Consolidated Financial Statements based on PBF Energy’s allocable share of PBF LLC’s pre-tax income or loss, which was approximately 99.0% and 99.0%, on a weighted-average basis for the three months ended March 31, 2020 and 2019, respectively. PBF Energy’s Condensed Consolidated Financial Statements do not reflect any benefit or provision for income taxes on the pre-tax income or loss attributable to the noncontrolling interests in PBF LLC or PBFX (although, as described above, PBF LLC must make tax distributions to all its members on a pro-rata basis). PBF Energy’s effective tax rate, excluding the impact of noncontrolling interests, for the three months ended March 31, 2020 and 2019 was 26.0% and 26.0%, respectively.
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Noncontrolling Interest— PBF Energy is the sole managing member of, and has a controlling interest in, PBF LLC. As a resultthe sole managing member of PBF LLC, PBF Energy operates and controls all of the initial public offeringbusiness and affairs of PBF LLC and its subsidiaries. PBF Energy consolidates the financial results of PBF LLC and its subsidiaries, including PBFX. With respect to the consolidation of PBF LLC, the Company records a noncontrolling interest for the economic interest in PBF LLC held by members other than PBF Energy, and with respect to the consolidation of PBFX, the Company records a noncontrolling interest for the economic interests in PBFX held by the public unit holdersunitholders of PBFX.PBFX, and with respect to the consolidation of PBF Holding, the Company records a 20% noncontrolling interest for the ownership interests in two subsidiaries of Chalmette Refining held by a third party. The total noncontrolling interest on the consolidated statementCondensed Consolidated Statements of operationsOperations represents the portion of the Company’s earnings or loss attributable to the economic interests held by members of PBF LLC other than PBF Energy, by the public common unit holdersunitholders of PBFX.PBFX and by the third-party stockholders of certain of Chalmette Refining’s subsidiaries. The total noncontrolling interest on the balance sheetCondensed Consolidated Balance Sheets represents the portion of the Company’s net assets attributable to the economic interests held by the public common unit holdersmembers of PBFX.

Nine Months Ended September 30, 2015 Compared to the Nine Months Ended September 30, 2014
Overview— Net income was $468.2 million for the nine months ended September 30, 2015 compared to net income of $553.7 million for the nine months ended September 30, 2014. Net income attributable to PBF LLC was $441.6 million for the nine months ended September 30, 2015 compared to net income attributable toother than PBF LLC of $546.3 million for the nine months ended September 30, 2014. The net income or loss attributable to PBF LLC includes PBF LLC’s equity interest in its operating subsidiaries' net income.
Our results for the nine months ended September 30, 2015 were negatively impacted by a non-cash special item consisting of a non-cash inventory lower of cost or market ("LCM") adjustment of approximately $81.1 million on a net basis, which includes the reversal of the LCM charge recorded in the fourth quarter of 2014. The LCM adjustment is a result of the changing crude oil and refined product prices from the year ended 2014 to the end of the third quarter of 2015. During this period the prices have remained below historical costs. Excluding the impact of the net change in LCM reserve of $81.1 million, our results were negatively impacted by unfavorable movements in certain crude oil differentials and the impact of the unplanned downtime at our Toledo refinery and Delaware City refinery in June and August 2015, respectively, which increased operating expenses and reduced throughput, partially offset by higher crack spreads on the East Coast and Mid-Continent.
Revenues— Revenues totaled $9.8 billion for the nine months ended September 30, 2015 compared to $15.3 billion for the nine months ended September 30, 2014, a decrease of approximately $5.5 billion, or 36.2%. For the nine months ended September 30, 2015, the total throughput rates in the East Coast and Mid-Continent refineries averaged approximately 325,400 bpd and 152,700 bpd, respectively. For the nine months ended September 30, 2014, the total throughput rates at our East Coast and Mid-Continent refineries averaged approximately 320,400

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bpd and 145,500 bpd, respectively. The increase in throughput rates at our East Coast refineries in 2015 compared to 2014 is primarily due to favorable market conditions, partially offset by unplanned down time at our Delaware City refinery in August 2015 and a planned turnaround in September 2015. The increase in throughput rates at our Mid-Continent refinery is due to favorable market conditions at our Toledo refinery in the third quarter of 2015, partially offset by an unplanned downtime in the second quarter of 2015. For the nine months ended September 30, 2015, the total barrels sold at our East Coast and Mid-Continent refineries averaged approximately 363,400 bpd and 163,000 bpd, respectively. For the nine months ended September 30, 2014, the total barrels sold at our East Coast and Mid-Continent refineries averaged approximately 341,600 bpd and 152,700 bpd, respectively. Total refined product barrels sold were higher than throughput rates, reflecting sales from inventory as well as sales and purchases of refined products outside the refinery.
Gross Margin— Gross refining margin (as described below in Non-GAAP Financial Measures) totaled $1,349.0 million, or $10.33 per barrel of throughput ($1,430.2 million or $10.95 per barrel of throughput excluding the impact of special items), for the nine months ended September 30, 2015 compared to $1,531.6 million, or $12.04 per barrel of throughput during the nine months ended September 30, 2014, a decrease of $182.6 million. Gross margin, including refinery operating expenses and depreciation, totaled $686.4 million, or $5.26 per barrel of throughput, for the nine months ended September 30, 2015 compared to $746.6 million, or $5.89 per barrel of throughput, for the nine months ended September 30, 2014, a decrease of $60.2 million. Excluding the impact of special items, gross margin and gross refining margin decreased due to unfavorable movements in crude differentials partially offset by improved crack spreads in the East Coast and the Mid-Continent and higher throughput rates. In addition, gross margin and gross refining margin were negatively impacted by a non-cash LCM adjustment of approximately $81.1 million on a net basis resulting from the change in crude oil and refined product prices from the year ended 2014 to the end of the third quarter of 2015, which remained below historical costs.
Average industry refining margins in the Mid-Continent were stronger during the nine months ended September 30, 2015 as compared to the same period in 2014. The WTI (Chicago) 4-3-1 industry crack spread was approximately $20.09 per barrel or 15.5% higher in the nine months ended September 30, 2015 as compared to $17.40 per barrel in the same period in 2014. Alternatively, our margins were negatively impacted from our refinery specific crude slate in the Mid-Continent which was impacted by a declining WTI/Syncrude differential, which averaged a premium of $1.19 per barrel during the nine months ended September 30, 2015 as compared to a discount of $1.97 per barrel in the same period of 2014.
The Dated Brent (NYH) 2-1-1 industry crack spread was approximately $17.75 per barrel, or 35.8% higher in the nine months ended September 30, 2015 as compared to $13.07 per barrel in the same period in 2014. The WTI/Dated Brent differential and Dated Brent/Maya differential were $2.14 and $6.40 lower, respectively, in the nine months ended September 30, 2015 as compared to the same period in 2014. In addition, the WTI/Bakken differential was approximately $1.49 per barrel less favorable in the nine months ended September 30, 2015 as compared to the same period in 2014.
Operating Expenses— Operating expenses totaled $635.9 million for the nine months ended September 30, 2015 compared to $682.2 million for the nine months ended September 30, 2014, a decrease of $46.3 million, or 6.8%. Of the total $635.9 million of operating expenses for the nine months ended September 30, 2015, $625.5 million, or $4.79 per barrel of throughput, related to expenses incurred by the Refining segment, while the remaining $10.4 million related to expenses incurred by the Logistics segment. The decrease in operating expenses was mainly attributable to a decrease of $64.8 million in energy related costs primarily attributable to lower natural gas and electricity prices. The decrease was partially offset by an increase of $12.8 million in maintenance and repair expenses directly attributable to the unplanned downtime at our Delaware City and Toledo refineries and $3.9 million in chemical and catalyst related expenses. Our operating expenses principally consist of salaries and employee benefits, maintenance, energy and catalyst and chemicals costs at our refineries. The operating expenses related to the Logistics segment consists of costs related to the operation and maintenance of PBFX's assets subsequent to the PBFX Offering.
General and Administrative Expenses— General and administrative expenses totaled $125.4 million for the nine months ended September 30, 2015 compared to $106.9 million for the nine months ended September 30, 2014, an increase of approximately $18.4 million or 17.3%. The increase in general and administrative expenses

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primarily relates to expenses incurred associated with PBFX and employee compensation costs. Our general and administrative expenses are comprised of the personnel, facilities and other infrastructure costs necessary to support our refineries.
Gain on Sale of Assets— Gain on sale of assets for the nine months ended September 30, 2015 was $1.1 million as compared to $0.2 million for the nine months ended September 30, 2014 related to the sale of railcars which were subsequently leased back.
Depreciation and Amortization Expense— Depreciation and amortization expense totaled $144.4 million for the nine months ended September 30, 2015 compared to $135.9 million for the nine months ended September 30, 2014, an increase of $8.5 million. The increase was primarily a result of capital projects related to turnarounds completed in 2014, the completed expansion of the crude rail unloading facility at the Delaware City refinery in 2014 and refinery optimization projects at Toledo, partially offset by an impairment charge of $28.5 million in 2014.
Change in Fair Value of Catalyst Leases— Change in the fair value of catalyst leases represented a gain of $9.0 million for the nine months ended September 30, 2015 compared to a gain of $1.2 million for the nine months ended September 30, 2014. These gains relate to the change in value of the precious metals underlying the sale and leaseback of our refineries’ precious metals catalyst, which we are obligated to repurchase at fair market value on the lease termination dates.
Interest Expense, net— Interest expense totaled $80.2 million for the nine months ended September 30, 2015 compared to $76.7 million for the nine months ended September 30, 2014, an increase of approximately $3.4 million. This increase is mainly attributable to higher interest costs associated with the issuance of the PBFX Revolving Credit Facility and the PBFX Term Loan in connection with the PBFX Offering as well as the issuance of the PBFX Senior Notes in May 2015 partially offset by the termination of our crude and feedstock supply agreement with MSCG, effective July 31, 2014. Interest expense includes interest on long-term debt including the PBFX credit facilities, costs related to the sale and leaseback of our precious metals catalyst, interest expense incurred in connection with our crude and feedstock supply agreement with Statoil, financing costs associated with the Inventory Intermediation Agreements with J. Aron, letter of credit fees associated with the purchase of certain crude oils, and the amortization of deferred financing costs.
Noncontrolling Interest— As a result of the initial public offering of PBFX, the Company records a noncontrolling interest for the economic interests in PBFX held by the public unit holders of PBFX. The total noncontrolling interest on the consolidated statement of operations represents the portion of the Company’s earnings or loss attributable to the economic interests heldEnergy, by the public common unit holdersunitholders of PBFX.PBFX and by the third-party stockholders of the two Chalmette Refining subsidiaries. PBF Energy’s weighted-average equity noncontrolling interest ownership percentage in PBF LLC for the three months ended March 31, 2020 and 2019 was approximately 1.0% and 1.0%, respectively. The totalcarrying amount of the noncontrolling interest on the balance sheet represents the portion of the Company’s net assetsour Condensed Consolidated Balance Sheets attributable to the economic interests held bynoncontrolling interest is not equal to the public common unit holdersnoncontrolling interest ownership percentage due to the effect of PBFX.income taxes and related agreements that pertain solely to PBF Energy.

68

Non-GAAP Financial Measures
Management uses certain financial measures to evaluate our operating performance that are calculated and presented on the basis of methodologies other than in accordance with U.S. GAAP.GAAP (“Non-GAAP”). These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP,accounting principles generally accepted in the United States of America (“GAAP”), and our calculations thereof may not be comparable to similarly entitled measures reported by other companies. Such Non-GAAP financial measures are presented only in the context of PBF Energy’s results and are not presented or discussed in respect to PBF LLC.
Special Items
The non-GAAPNon-GAAP measures presented include Adjusted Fully-Converted net income excluding special items, income from continuing operationsNet Income (Loss) excluding special items, EBITDA excluding special items and gross refining margin excluding special items. The specialSpecial items for the periods presented relate to a LCM adjustment. LCM is a GAAP guideline related to inventory valuation that requires inventory to be stated atadjustments, changes in the lower of cost or market. Our inventories are stated atTax Receivable Agreement liability, debt extinguishment costs and changes in the lower of cost or market. Cost is determined using last-in, first-out (LIFO) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory

44

declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down thefair value of inventorycontingent consideration. See “Notes to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and a LCM adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period.Non-GAAP Financial Measures” below for more details on all special items disclosed. Although we believe that non-GAAPNon-GAAP financial measures, excluding the impact of special items, provide useful supplemental information to investors regarding the results and performance of our business and allow for more usefulhelpful period-over-period comparisons, such non-GAAPNon-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

Adjusted Fully-Converted Net Income (Loss) and Adjusted Fully-Converted Net Income (Loss) Excluding Special Items
PBF Energy utilizes results presented on an Adjusted Fully-Converted basis that reflects an assumed exchange of all PBF LLC Series A Units for shares of PBF Energy Class A common stock. In addition, we present results on an Adjusted Fully-Converted basis excluding special items as described above. We believe that these Adjusted Fully-Converted measures, when presented in conjunction with comparable GAAP measures, are useful to investors to compare PBF Energy results across different periods and to facilitate an understanding of our operating results. Neither Adjusted Fully-Converted Net Income (Loss) nor Adjusted Fully-Converted Net Income (Loss) excluding special items should be considered an alternative to net income presented in accordance with GAAP. Adjusted Fully-Converted Net Income (Loss) and Adjusted Fully-Converted Net Income (Loss) excluding special items presented by other companies may not be comparable to our presentation, since each company may define these terms differently. The differences between Adjusted Fully-Converted and GAAP results are as follows:
1. Assumed exchange of all PBF LLC Series A Units for shares of PBF Energy Class A common stock. As a result of the assumed exchange of all PBF LLC Series A Units, the noncontrolling interest related to these units is converted to controlling interest. Management believes that it is useful to provide the per-share effect associated with the assumed exchange of all PBF LLC Series A Units.
2. Income Taxes. Prior to PBF Energy’s initial public offering (“IPO”), PBF Energy was organized as a limited liability company treated as a “flow-through” entity for income tax purposes, and even after PBF Energy’s IPO, not all of its earnings are subject to corporate-level income taxes. Adjustments have been made to the Adjusted Fully-Converted tax provisions and earnings to assume that PBF Energy had adopted its post-IPO corporate tax structure for all periods presented and is taxed as a C-corporation in the U.S. at the prevailing corporate rates. These assumptions are consistent with the assumption in clause 1 above that all PBF LLC Series A Units are exchanged for shares of PBF Energy Class A common stock, as the assumed exchange would change the amount of PBF Energy’s earnings that are subject to corporate income tax.
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The following table reconciles PBF Energy’s Adjusted Fully-Converted results with its results presented in accordance with GAAP for the three months ended March 31, 2020 and 2019 (in millions, except share and per share amounts):
Three Months Ended March 31,
20202019
Net income (loss) attributable to PBF Energy Inc. stockholders$(1,065.9) $229.2  
Less: Income allocated to participating securities0.1  0.1  
Income (loss) available to PBF Energy Inc. stockholders - basic(1,066.0) 229.1  
Add: Net income (loss) attributable to noncontrolling interest (1)
(14.6) 3.1  
Less: Income tax benefit (expense) (2)
3.9  (0.8) 
Adjusted fully-converted net income (loss)$(1,076.7) $231.4  
Special Items: (3)
Add: Non-cash LCM inventory adjustment1,285.6  (506.0) 
Add: Change in Tax Receivable Agreement liability11.6  —  
Add: Debt extinguishment costs22.2  —  
Add: Change in fair value of contingent consideration(52.8) —  
Add: Recomputed income taxes on special items(333.1) 131.6  
Adjusted fully-converted net income (loss) excluding special items$(143.2) $(143.0) 
Weighted-average shares outstanding of PBF Energy Inc.119,380,210  119,880,915  
Conversion of PBF LLC Series A Units (4)
1,208,798  1,206,325  
Common stock equivalents (5)
—  1,088,504  
Fully-converted shares outstanding-diluted120,589,008  122,175,744  
Diluted net income (loss) per share$(8.93) $1.89  
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares outstanding (5)
$(8.93) $1.89  
Adjusted fully-converted net income (loss) excluding special items per fully exchanged, fully diluted shares outstanding (3) (5)
$(1.19) $(1.18) 
——————————
See Notes to Non-GAAP Financial Measures.
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Gross Refining Margin and Gross Refining Margin Excluding Special Items
Gross refining margin is defined as consolidated gross margin excluding refinery depreciation, refinery operating expenses,expense, and gross margin of PBFX. We believe both gross refining margin is anand gross refining margin excluding special items are important measuremeasures of operating performance and providesprovide useful information to investors because it is a betterthey are helpful metric comparison forcomparisons to the industry refining margin benchmarks, as the refining margin benchmarks do not include a charge for refinery operating expenses and depreciation. In order to assess our operating performance, we compare our gross refining margin (revenue(revenues less cost of sales)products and other) to industry refining margin benchmarks and crude oil prices as defined in the table below.
GrossNeither gross refining margin nor gross refining margin excluding special items should not be considered an alternative to consolidated gross margin, operating income from operations, net cash flows from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Gross refining margin and gross refining margin excluding special items presented by other companies may not be comparable to our presentation, since each company may define this termthese terms differently. The following table presents our GAAP calculation of gross margin and a reconciliation of gross refining margin to the most directly comparable GAAP financial measure, consolidated gross margin, on a historical basis, as applicable, for each of the periods indicated:indicated (in millions, except per barrel amounts):


 Three Months Ended September 30,
 2015 2014
 $ per barrel of throughput $ per barrel of throughput
Reconciliation of gross margin to gross refining margin:       
Gross margin$150,815
 $3.45
 $322,084
 $7.10
Less: Affiliate Revenues of PBFX(37,082) (0.85) (14,744) (0.32)
Add: Affiliate Cost of sales of PBFX1,118
 0.03
 —
 —
Add: Refinery operating expenses200,014
 4.57
 202,625
 4.41
Add: Refinery depreciation expense44,366
 1.01
 64,386
 1.41
Gross refining margin$359,231
 $8.21
 $574,351
 $12.60
Special Items:       
Add: Non-Cash LCM inventory adjustment (1)
208,313
 4.76
 —
 —
Gross refining margin excluding special items$567,544
 $12.97
 $574,351
 $12.60
Three Months Ended March 31,
20202019
$per barrel of throughput$per barrel of throughput
Calculation of consolidated gross margin:
Revenues$5,277.5  $68.00  $5,216.2  $77.99  
Less: Cost of sales6,611.7  85.19  4,791.2  71.64  
Consolidated gross margin$(1,334.2) $(17.19) $425.0  $6.35  
Reconciliation of consolidated gross margin to gross refining margin:
Consolidated gross margin$(1,334.2) $(17.19) $425.0  $6.35  
Add: PBFX operating expense29.6  0.38  29.9  0.45  
Add: PBFX depreciation expense11.3  0.15  8.7  0.13  
Less: Revenues of PBFX(93.0) (1.20) (78.8) (1.18) 
Add: Refinery operating expense507.5  6.54  453.4  6.78  
Add: Refinery depreciation expense105.4  1.36  94.3  1.41  
Gross refining margin$(773.4) $(9.96) $932.5  $13.94  
Special items:(3)
Add: Non-cash LCM inventory adjustment1,285.6  16.56  (506.0) (7.56) 
Gross refining margin excluding special items$512.2  $6.60  $426.5  $6.38  
——————————
(1) During the third quarter of 2015, the Company recorded an adjustmentSee Notes to value its inventories to the lower of cost or market which resulted in a net impact of $208.3 million reflecting the change in the lower of cost or market inventory reserve from $562.9 million at June 30, 2015 to $771.3 million at September 30, 2015. The net impact of these LCM inventory adjustments are included in the Refining segment's operating income, but are excluded from the operating results presented in the table in order to make such information comparable between periods.Non-GAAP Financial Measures.


4571


 Nine Months Ended September 30,
 2015 2014
 $ per barrel of throughput $ per barrel of throughput
Reconciliation of gross margin to gross refining margin:       
Gross margin$686,401
 $5.26
 $746,567
 $5.89
Less: Affiliate Revenues of PBFX(101,413) (0.78) (22,526) (0.18)
Add: Affiliate Cost of sales of PBFX6,394
 0.05
 —
 —
Add: Refinery operating expenses625,542
 4.79
 682,246
 5.34
Add: Refinery depreciation expense132,093
 1.01
 125,294
 0.99
Gross refining margin$1,349,017
 $10.33
 $1,531,581
 $12.04
Special Items:       
Add: Non-Cash LCM inventory adjustment (1)81,147
 0.62
 —
 —
Gross refining margin excluding special items$1,430,164
 $10.95
 $1,531,581
 $12.04
——————————
(1) During the nine months ended September 30, 2015, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net impact of $81.1 million reflecting the change in the lower of cost or market inventory reserve from $690.1 million million at December 31, 2014 to $771.3 million at September 30, 2015. The net impact of these LCM inventory adjustments are included in the Refining segment's operating income, but are excluded from the operating results presented in the table in order to make such information comparable between periods.


46

EBITDA, EBITDA Excluding Special Items and Adjusted EBITDA
Our management uses EBITDA (earnings before interest, income taxes, depreciation and amortization), EBITDA excluding special items and Adjusted EBITDA as measures of operating performance to assist in comparing performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations, and in communications with our board of directors, creditors, analysts and investors concerning our financial performance. Our outstanding indebtedness for borrowed money and other contractual obligations also include similar measures as a basis for certain covenants under those agreements which may differ from the Adjusted EBITDA definition described below.
EBITDA, EBITDA excluding special items and Adjusted EBITDA are not presentations made in accordance with GAAP and our computation of EBITDA, EBITDA excluding special items and Adjusted EBITDA may vary from others in our industry. In addition, Adjusted EBITDA contains some, but not all, adjustments that are taken into account in the calculation of the components of various covenants in the agreements governing our senior secured notes and other credit facilities. EBITDA, EBITDA excluding special items and Adjusted EBITDA should not be considered as alternatives to operating income from operations or net income as measures of operating performance. In addition, EBITDA, EBITDA excluding special items and Adjusted EBITDA are not presented as, and should not be considered, an alternative to cash flows from operations as a measure of liquidity. Adjusted EBITDA is defined as EBITDA before equity-basedadjustments for items such as stock-based compensation expense, gains (losses) from certain derivative activities and contingent consideration and the non-cash change in the deferralfair value of gross profit related to the sale of certain finished products andcatalyst obligations, the write down of inventory to the LCM.LCM, changes in the liability for Tax Receivable Agreement due to factors out of PBF Energy’s control such as changes in tax rates, debt extinguishment costs related to refinancing activities, change in the fair value of contingent consideration and certain other non-cash items. Other companies, including other companies in our industry, may calculate EBITDA, EBITDA excluding special items and Adjusted EBITDA differently than we do, limiting itstheir usefulness as a comparative measure.measures. EBITDA, EBITDA excluding special items and Adjusted EBITDA also hashave limitations as an analytical tooltools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations include that EBITDA, EBITDA excluding special items and Adjusted EBITDA:
does•do not reflect depreciation expense or our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
does•do not reflect changes in, or cash requirements for, our working capital needs;
does•do not reflect our interest expense, or the cash requirements necessary to service interest or principal payments, on our debt;
does•do not reflect realized and unrealized gains and losses from certain hedging activities, which may have a substantial impact on our cash flow;
does•do not reflect certain other non-cash income and expenses; and
excludes•exclude income taxes that may represent a reduction in available cash.



47
72


The following tables reconcile net income (loss) as reflected in ourPBF Energy’s results of operations to EBITDA, EBITDA excluding special items and Adjusted EBITDA for the periods presented:presented (in millions):

Three Months Ended March 31,
20202019
Reconciliation of net income (loss) to EBITDA and EBITDA excluding special items:
Net income (loss)$(1,062.5) $241.4  
Add: Depreciation and amortization expense119.6  105.8  
Add: Interest expense, net49.2  39.5  
Add: Income tax (benefit) expense(374.6) 80.5  
EBITDA$(1,268.3) $467.2  
Special Items(3)
Add: Non-cash LCM inventory adjustment1,285.6  (506.0) 
Add: Change in Tax Receivable Agreement liability11.6  —  
Add: Debt extinguishment costs22.2  —  
Add: Change in fair value of contingent consideration(52.8) —  
EBITDA excluding special items$(1.7) $(38.8) 
Reconciliation of EBITDA to Adjusted EBITDA:
EBITDA$(1,268.3) $467.2  
Add: Stock-based compensation9.6  8.0  
Add: Net non-cash change in fair value of catalyst obligations(11.7) 3.1  
Add: Net non-cash change in fair value of contingent consideration (3)
(52.8) —  
Add: Non-cash LCM inventory adjustment (3)
1,285.6  (506.0) 
Add: Change in Tax Receivable Agreement liability(3)
11.6  —  
Add: Debt extinguishment costs (3)
22.2  —  
Adjusted EBITDA$(3.8) $(27.7) 
——————————
See Notes to Non-GAAP Financial Measures.
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   Three Months Ended 
 September 30,		 Nine Months Ended 
 September 30,
    
   2015 2014 2015 2014
          
Reconciliation of net income to EBITDA:       
Net income$68,171
 $261,823
 $468,188
 $553,665
Add: Depreciation and amortization expense48,133
 68,010
 144,401
 135,887
Add: Interest expense, net29,360
 24,855
 80,183
 76,728
EBITDA$145,664
 $354,688
 $692,772
 $766,280
Special Items:       
Add: Non-cash LCM inventory adjustment208,313
 —
 81,147
 —
EBITDA excluding special items$353,977
 $354,688
 $773,919
 $766,280
          
Reconciliation of EBITDA to Adjusted EBITDA:       
EBITDA$145,664
 $354,688
 $692,772
 $766,280
Add: Stock based compensation3,363
 2,454
 8,757
 5,377
Add: Non-cash change in fair value of catalyst lease obligations(4,994) (5,543) (8,982) (1,204)
Add: Non-cash LCM inventory adjustment (1)208,313
 —
 81,147
 —
Adjusted EBITDA$352,346
 $351,599
 $773,694
 $770,453
Notes to Non-GAAP Financial Measures
The following notes are applicable to the Non-GAAP Financial Measures above:
(1) DuringRepresents the third quarterelimination of 2015, the Company recordednoncontrolling interest associated with the ownership by the members of PBF LLC other than PBF Energy, as if such members had fully exchanged their PBF LLC Series A Units for shares of PBF Energy Class A common stock.
(2) Represents an adjustment to value its inventoriesreflect PBF Energy’s estimated annualized statutory corporate tax rate of approximately 26.3% and 26.0% for the 2020 and 2019 periods, respectively, applied to net income (loss) attributable to noncontrolling interest for all periods presented. The adjustment assumes the full exchange of existing PBF LLC Series A Units as described in (1) above.
(3) Special items:
LCM inventory adjustment - LCM is a GAAP requirement related to inventory valuation that mandates inventory to be stated at the lower of cost or market which resulted in a net impact of $208.3 million reflecting the change inmarket. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (“LIFO”) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory reserve from $562.9 million at June 30, 2015 to $771.3 million at September 30, 2015. During the nine months ended September 30, 2015, the Company recordeddeclines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value its inventoriesof inventory to market value in accordance with GAAP. In subsequent periods, the lowervalue of cost or market which resulted in ainventory is reassessed and an LCM inventory adjustment is recorded to reflect the net impact of $81.1 million reflecting the change in the lower of cost or marketLCM inventory reserve from $690.1 million at December 31, 2014 to $771.3 million at September 30, 2015.between the prior period and the current period. The net impact of these LCM inventory adjustments are included in the Refining segment's operatingsegment’s income from operations, but are excluded from the operating results presented, in the tableas applicable, in order to make such information comparable between periods.

        The following table includes the LCM inventory reserve as of each date presented (in millions):

20202019
January 1,$401.6  $651.8  
March 31,1,687.2  145.8  
        The following table includes the corresponding impact of changes in the LCM inventory reserve on income (loss) from operations and net income (loss) for the periods presented (in millions):

Three Months Ended March 31,
20202019
Net LCM inventory adjustment (charge) benefit in income (loss) from operations$(1,285.6) $506.0  
Net LCM inventory adjustment (charge) benefit in net income (loss)(947.5) 374.4  
Debt Extinguishment Costs - During the three months ended March 31, 2020, we recorded pre-tax debt extinguishment costs of $22.2 million related to the redemption of the 2023 Senior Notes. These nonrecurring charges increased net loss by $16.4 million for the three months ended March 31, 2020. There were no such costs in the three months ended March 31, 2019.
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Change in Tax Receivable Agreement liability - During the three months ended March 31, 2020 we recorded a change in the Tax Receivable Agreement liability that increased loss before income taxes and net loss by $11.6 million and $8.5 million, respectively. The changes in the Tax Receivable Agreement liability reflect charges or benefits attributable to changes in our obligation under the Tax Receivable Agreement due to factors out of our control such as changes in tax rates. There was no change in the Tax Receivable Agreement liability during the three months ended March 31, 2019.
Change in Fair Value of Contingent Consideration - During the three months ended March 31, 2020 we recorded a change in the fair value of the contingent consideration primarily related to the Martinez Contingent Consideration which decreased loss before income taxes and net loss by $52.8 million and $38.9 million, respectively.
        Recomputed Income taxes on special items - The income tax impact on special items is calculated using the tax rates shown in (2) above.
(4) Represents an adjustment to weighted-average diluted shares outstanding to assume the full exchange of existing PBF LLC Series A Units as described in (1) above.
(5) Represents weighted-average diluted shares outstanding assuming the conversion of all common stock equivalents, including options and warrants for PBF LLC Series A Units and performance share units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive) for the three months ended March 31, 2020 and 2019, respectively. Common stock equivalents exclude the effects of performance share units and options and warrants to purchase 11,388,905 and 5,111,617 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three months ended March 31, 2020 and 2019, respectively. For periods showing a net loss, all common stock equivalents and unvested restricted stock are considered anti-dilutive.
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Liquidity and Capital Resources
Overview
OurTypically our primary sources of liquidity are our cash flows from operations, cash and cash equivalents and borrowing availability under our credit facilities, however, due to the COVID-19 pandemic and the current extraordinary and volatile market conditions, our business and results of operations are being negatively impacted. The demand destruction as a result of the worldwide economic slowdown and governmental responses, including travel restrictions and stay-at-home orders, has resulted in a significant decrease in the demand for and market prices for our products. In addition, recent global geopolitical and macroeconomic events have further contributed to the decline in crude oil prices and the overall volatility in crude oil and refined product prices, contributing to an adverse impact on our liquidity. We continue to be focused on implementing measures to preserve liquidity and strengthen our balance sheet in light of these challenging market conditions. Our response to the current economic environment and its impact on our liquidity is more fully described below. We believe that our cash flows from operations and available capital resources will be sufficient to meet our and our subsidiaries' capital expenditure, working capital, dividend payments, debt service and share repurchase program requirements forin the next twelve months. We expect to finance the planned Torrance Acquisition with a combination of cash on hand, debt, including the proceeds from the issuance of the 7.0% Senior Secured Notes due 2023, and proceeds contributed to us in connection with PBF Energy's October 2015 Equity Offering. However, our ability to generate sufficient cash flow from operations depends, in part, on petroleum market pricing and general economic, political and other factors beyond our control. We are in compliance with all of the covenants, including financial covenants, for all of our debt agreements.“Liquidity” section below.
Cash Flow Analysis

48The below cash flow analysis includes details by cash flow activity based on the results of PBF Energy. Material changes that exist between the PBF Energy and PBF LLC cash flows are explained thereafter.

Cash Flows from Operating Activities
Net cash provided byused in operating activities was $304.9$235.8 million for the ninethree months ended September 30, 2015March 31, 2020 compared to net cash provided byused in operating activities of $400.9$149.9 million for the ninethree months ended September 30, 2014.March 31, 2019. Our operating cash flows for the ninethree months ended September 30, 2015March 31, 2020 included our net loss of $1,062.5 million, deferred income taxes of $468.2$374.8 million, plus net non-cash charges relating to the change in the fair value of our inventory repurchase obligations of $53.4$67.9 million, depreciationchange in the fair value of the contingent consideration of $52.8 million, and amortization of $151.5 million, pension and other post retirement benefits costs of $19.3 million, net non-cash benefit of $81.1 million relating to a LCM inventory adjustment and equity-based compensation of $8.8 million, partially offset by a change in the fair value of our catalyst leaseobligations of $9.0$11.7 million, partially offset by depreciation and amortization of $123.0 million, pension and other post-retirement benefits costs of $13.1 million, change in the Tax Receivable Agreement liability of $11.6 million, stock-based compensation of $9.6 million, debt extinguishment costs related to the early redemption of our 2023 Senior Notes of $22.2 million, and gain on salea net non-cash charge of assets of $1.1 million.$1,285.6 million relating to an LCM inventory adjustment. In addition, net changes in working capital reflectedoperating assets and liabilities reflects cash uses of cash of $467.3$131.2 million driven by the timing of inventory purchases, payments for accrued expenses and accounts payables and collections of accounts receivables. Our operating cash flows for the ninethree months ended September 30, 2014March 31, 2019 included our net income of $553.7$241.4 million, plusdepreciation and amortization of $108.6 million, deferred income taxes of $78.5 million, pension and other post-retirement benefits costs of $11.2 million, net non-cash charges relating to depreciation and amortization of $141.5 million, pension and other post retirement benefits costs of $16.5 million, and equity-based compensation of $5.4 million, partially offset by the change in the fair value of our inventory repurchase obligations of $31.6$14.2 million, changestock-based compensation of $8.0 million, changes in the fair value of our catalyst lease obligations of $1.2$3.1 million, and gain on salepartially offset by a net non-cash benefit of assets of $0.2 million.$506.0 million relating to an LCM inventory adjustment. In addition, net changes in working capitaloperating assets and liabilities reflected cash uses of cash of $283.1$108.9 million driven by the timing of inventory purchases, payments for accrued expenses and accounts payables and collections of accounts receivables.


Cash Flows from Investing Activities
Net cash used in investing activities was $166.9$1,315.2 million for the ninethree months ended September 30, 2015March 31, 2020 compared to net cash used in investing activities of $521.3$260.6 million for the ninethree months ended September 30, 2014.March 31, 2019. The net cash flows used in investing activities for the ninethree months ended September 30, 2015March 31, 2020 was comprised of cash outflows of $1,176.2 million used to fund the Martinez Acquisition, capital expenditures totaling $288.9$65.3 million, expenditures for refinery turnarounds of $39.7$69.1 million, and expenditures for other assets of $7.3 million, partially offset by $168.3 million in proceeds from the sale of railcars and $0.7 million of net maturities of marketable securities.$4.6 million. Net cash used in investing activities for the ninethree months ended September 30, 2014March 31, 2019 was comprised of cash outflows of $105.4 million for capital expenditures, totaling $258.9 million, expenditures for refinery turnarounds of $58.4$133.0 million, and expenditures for other assets of $13.4 million, net purchases of marketable securities totaling $264.9 million as collateral for the PBFX Term Loan entered into in conjunction with the PBFX Offering, partially offset by $74.3 million in proceeds from the sale of railcars.$22.2 million.

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Cash Flows from Financing Activities
Net cash used inprovided by financing activities was $34.2$1,458.2 million for the ninethree months ended September 30, 2015March 31, 2020 compared to net cash provided by financing activities of $520.8$231.5 million for the ninethree months ended September 30, 2014.March 31, 2019. For the ninethree months ended September 30, 2015,March 31, 2020, net cash provided by financing activities consisted primarily of cash proceeds of $470.2 million from the issuance of the PBFX2028 Senior Notes net of $350.0cash paid to redeem the 2023 Senior Notes and related issuance costs, net borrowings under our Revolving Credit Facility of $900.0 million, net borrowings from the PBFX Revolving Credit Facility of $100.0 million, proceeds from the Rail Facilityinsurance premium financing of $30.1$45.3 million, proceeds from stock options exercised of $0.2 million, and net proceeds from the intercompany loan from PBF Energydeferred financing costs and other of $24.6$0.8 million, partially offset by distributions and dividends of $169.9$53.0 million, $251.3principal amortization payments of the PBF Rail Term Loan of $1.8 million, payments on finance leases of net repayments of PBFX revolver and term loan borrowings, purchases of our Class A common stock of $8.1$2.6 million and $9.6 milliontaxes paid for deferred financing and other costs.net settlement of equity-based compensation of $0.9 million. Forthe ninethree months ended September 30, 2014,March 31, 2019, net cash provided by financing activities consisted primarily of net borrowings under our Revolving Credit Facility of $250.0 million, proceeds received from the PBFX Offeringinsurance premium financing of $341.0$30.2 million, net borrowing under the PBFX Term Loan of $264.9 million, borrowing of $140.1 million underborrowings from the PBFX Revolving Credit Facility borrowing of $35.9$4.0 million, under the Rail Facility and proceeds from the intercompany loan from PBF Energystock options exercised of $91.7$0.1 million, partially offset by distributions and dividends of $286.3$49.1 million, purchasesprincipal amortization payments of the PBF Rail Term Loan of $1.7 million, taxes paid for net settlement of equity-based compensation of $1.0 million, and repurchases of our Class A common stock in connection with tax withholding obligations upon the vesting of $32.6certain restricted stock awards of $1.0 million.
The cash flow activity of PBF LLC for the period ended March 31, 2020 is materially consistent with that of PBF Energy discussed above, other than changes in deferred income taxes and certain working capital items, which are different from PBF Energy due to certain tax related items not applicable to PBF LLC. Additionally, the PBF LLC cash flows reflect repayments of the affiliate note payable with PBF Energy of $1.1 million $15.0included in cash flows from financing activities, which eliminates in consolidation at PBF Energy.
The cash flow activity of PBF LLC for the period ended March 31, 2019 is materially consistent with that of PBF Energy discussed above, other than changes in deferred income taxes and certain working capital items, which are different from PBF Energy due to certain tax related items not applicable to PBF LLC. Additionally, the PBF LLC cash flows reflect net proceeds from the affiliate note payable with PBF Energy of $0.1 million included in cash flows from financing activities, which eliminates in consolidation at PBF Energy.
Debt and Credit Facilities
PBFX Revolving Credit Facility
On July 30, 2018, PBFX entered into the PBFX Revolving Credit Facility. The PBFX Revolving Credit Facility amended and restated the existing PBFX revolving credit facility entered into in connection with the closing of the PBFX IPO. Among other things, the PBFX Revolving Credit Facility increased the maximum commitment available to PBFX from $360.0 million to $500.0 million, and extended the maturity date to July 2023. PBFX has the ability to further increase the maximum availability by an additional $250.0 million to a total commitment of $750.0 million, subject to receiving increased commitments from lenders or other financial institutions and satisfaction of certain conditions. Borrowings under the PBFX Revolving Credit Facility bear interest either at the Alternative Base Rate plus the Applicable Margin or at the London Interbank Offering Rate (“LIBOR”) plus the Applicable Margin, all as defined in the agreement governing the PBFX Revolving Credit Facility (the “PBFX Revolving Credit Agreement”).
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PBF Holding Revolving Credit Facility
On May 2, 2018, PBF Holding and certain of our wholly-owned subsidiaries, as borrowers or subsidiary guarantors, replaced the existing asset-based revolving credit agreement dated as of August 15, 2014 with the Revolving Credit Facility. Among other things, the Revolving Credit Facility increased the maximum commitment available to us from $2.6 billion to $3.4 billion, extended the maturity date to May 2023, and redefined certain components of the Borrowing Base, as defined in the Revolving Credit Agreement, to make more funding available for working capital and other general corporate purposes. Borrowings under the Revolving Credit Facility bear interest at the Alternative Base Rate plus the Applicable Margin or at the Adjusted LIBOR plus the Applicable Margin, all as defined in the Revolving Credit Agreement. In addition, an accordion feature allows for commitments of up to $3.5 billion.
On February 18, 2020, in connection with the entry into the Receivables Facility, we amended the Revolving Credit Facility and entered into a related intercreditor agreement to allow us to sell certain Eligible Receivables (as defined in the Revolving Credit Agreement) derived from the sale of refined product over truck racks. Under the Receivables Facility, we sell such receivables to a bank subject to bank approval and certain conditions. The sales of receivables under the Receivables Facility are absolute and irrevocable but subject to certain repurchase obligations under certain circumstances.
As disclosed in “Note 20 - Subsequent Events” of our Notes to Condensed Consolidated Financial Statements, on May 7, 2020, we further amended the Revolving Credit Facility, to increase PBF Holding’s ability to incur certain secured debt from an amount equal to 10% of its total assets to 20% of its total assets.
Senior Notes
On January 24, 2020, PBF Holding entered into an indenture among PBF Holding’s wholly-owned subsidiary, PBF Finance (together with PBF Holding, the “Issuers”), the guarantors named therein (collectively the “Guarantors”), Wilmington Trust, National Association, as Trustee and Deutsche Bank Trust Company Americas, under which the Issuers issued $1.0 billion in aggregate principal amount of the 2028 Senior Notes. The Issuers received net proceeds of approximately $987.0 million from the offering after deducting the initial purchasers’ discount and estimated offering expenses. We used the net proceeds primarily to fully redeem the 2023 Senior Notes, including accrued and unpaid interest, on February 14, 2020, and to fund a portion of the cash consideration for the Martinez Acquisition. The difference between the carrying value of the 2023 Senior Notes on the date they were reacquired and the amount for which they were reacquired has been classified as Debt extinguishment costs in the Condensed Consolidated Statement of Operations.
As disclosed in “Note 20 - Subsequent Events” of our Notes to Condensed Consolidated Financial Statements, on May 13, 2020, PBF Holding issued $1.0 billion in aggregate principal amount of the 2025 Senior Secured Notes. We intend to use the net proceeds for general corporate purposes.
We are in compliance as of March 31, 2020 with all covenants, including financial covenants, in all of our debt agreements.
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Liquidity
The recent outbreak of the COVID-19 pandemic and certain developments in the global oil markets began negatively impacting our liquidity beginning towards the end of the current quarter. As of March 31, 2020, we had $1,080.2 million of net repaymentsunused borrowing availability, which includes PBF Holding cash and cash equivalents of revolver borrowings, PBFX Offering costs$589.4 million, under the Revolving Credit Facility (net of $5.0$193.2 million outstanding letters of credit) and $13.9 million for deferred financing and other costs.

Liquiditytotal long-term debt outstanding of $3,546.1 million.
As of September 30, 2015, PBF LLC'sMarch 31, 2020, our total liquidity was approximately $1,198.4$1,212.9 million, compared to total liquidity of approximately $1,109.9$2,276.2 million as of December 31, 2014. Total2019. Our total liquidity is the sum of our cash and cash equivalents plusequal to the amount of excess availability under the Third Amended and Restated Revolving Credit Agreement ("Revolving Loan"). AsFacility, which includes our cash balance at March 31, 2020. In addition, as of September 30, 2015 and DecemberMarch 31, 2014,2020, PBFX had approximately $298.5 and $49.9$112.2 million respectively, of borrowing capacity under the PBFX Revolving Credit Facility whichin comparison to $212.2 million as of December 31, 2019. The PBFX Revolving Credit Facility is available

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to fund working capital, acquisitions, distributions, and capital expenditures and for other general corporate purposes.purposes incurred by PBFX.
Due to the unprecedented events caused by the COVID-19 pandemic and the negative impact it has caused to our liquidity, we have taken the following measures to strengthen our balance sheet and increase our flexibility and responsiveness:
•Cost reduction and cash preservation initiatives, including a significant reduction in 2020 planned capital expenditures, lowering 2020 operating expenses driven by significant reductions in discretionary activities and third party services, and reducing corporate overhead expenses through salary reductions to a large portion of our workforce;
•Suspended our quarterly dividend of $0.30 per share, anticipated to preserve approximately $35.0 million of cash each quarter to support the balance sheet;
•Closed on the sale of five hydrogen facilities for gross cash proceeds of $530.0 million on April 17, 2020; and
•Issued $1.0 billion in aggregate principal amount of the 2025 Senior Secured Notes for net proceeds of approximately $987.5 million to be used for general corporate purposes. See “Note 20 - Subsequent Events” of our Notes to Condensed Consolidated Financial Statements for additional details related to the notes offering.
The 2025 Senior Secured Notes are guaranteed by certain of our current domestic subsidiaries. The 2025 Senior Secured Notes are senior obligations and are initially secured, subject to certain exceptions and permitted liens, on a first-priority basis, by substantially all of our and our guarantors’ present and future assets (other than assets securing our Revolving Credit Facility and other excluded assets) and any future indebtedness and certain hedging obligations which are permitted to be secured on a pari passu basis with the 2025 Senior Secured Notes to the extent of the value of the collateral. In addition, PBF LLC hadthe 2025 Senior Secured Notes contain customary terms, events of default and covenants for an issuer of non-investment grade debt securities. These covenants include limitations on the incurrence of additional indebtedness, equity issuances, and payments. Many of these covenants will cease to apply or will be modified if the 2025 Senior Secured Notes are rated investment grade.
Inclusive of the measures and transactions described above, we estimate our liquidity to be approximately $2,000.0 million, based on our estimated May 1, 2020 cash and cash equivalents balance of $805.0 million (excluding cash related to PBFX), $151.0 million of additional available borrowing capacity and no subsequent borrowings under our Revolving Credit Facility. Assuming current commodity prices do not significantly weaken and working capital normalizes in May, we expect to realize an additional net working capital benefit and a Revolving Credit Facility borrowing base increase. However, if we continue to experience low crude oil prices and deteriorating market conditions, our borrowing capacity under our Revolving Credit Facility may be reduced.
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As of $82.5March 31, 2020, we have no expected debt maturities due in 2020, and we have $48.7 million of debt obligations due over the next three years, excluding interest incurred on amounts we have borrowed and $212.7 millionfinancing fees.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act provides opportunities for additional liquidity, loan guarantees, and other government programs to support companies affected by the COVID-19 pandemic and their employees. Based on our preliminary analysis of the CARES Act, we are exploring the following opportunities:
•Deferral of social security payroll tax matches that would otherwise be required in 2020;
•Receipt of a payroll tax credit in 2020, to the extent allowable, for expenses related to paying wages and health benefits to employees who are not working as a result of closures and reduced receipts associated with the COVID-19 pandemic; and
•Carryforward of tax loss incurred in 2020, as applicable, to utilize in future years when our 2020 tax return is filed.
We intend to seek any available potential benefits under the Rail FacilityCARES Act, including loans, investments or guarantees, and any other such current or future government programs for which we qualify, including those described above. We cannot predict the manner in which such benefits or any of the other benefits described herein will be allocated or administered and we cannot assure you that we will be able to access such benefits in a timely manner or at all.
While it is impossible to estimate the duration or complete financial impact of the COVID-19 pandemic, we believe that these strategic actions plus our cash flows from operations and available capital resources will be sufficient to meet our and our subsidiaries’ capital expenditures, working capital needs, and debt service requirements, for the next twelve months. We cannot assure you that our assumptions used to estimate our liquidity requirements will be correct because the impact that the COVID-19 pandemic is having on us and our industry is ongoing and unprecedented. The extent of the impact of the COVID-19 pandemic on our business, financial condition, results of operation and liquidity will depend largely on future developments, including the duration of the outbreak, particularly within the geographic areas where we operate, and the related impact on overall economic activity, all of which are uncertain and cannot be predicted with certainty at this time. As a result, we may require additional capital, and, from time to time, may pursue funding strategies in the capital markets or through private transactions to strengthen our liquidity and/or fund the acquisition of Eligible Railcars as of September 30, 2015strategic initiatives. Such additional financing may not be available on favorable terms or at all.
Refer to “Business Developments” and December 31, 2014, respectively.

“Part II - Other Information, Item 1A. Risk Factors” for further information.
Working Capital
WorkingPBF Energy’s working capital for PBF LLC at September 30, 2015March 31, 2020 was $914.3$263.8 million, consisting of $2,039.8$2,309.7 million in total current assets and $1,125.4$2,045.9 million in total current liabilities. WorkingPBF Energy’s working capital at December 31, 20142019 was $586.4$1,314.5 million, consisting of $2,053.8$3,823.7 million in total current assets and $1,467.4$2,509.2 million in total current liabilities. PBF LLC’s working capital at March 31, 2020 was $229.5 million, consisting of $2,309.4 million in total current assets and $2,079.9 million in total current liabilities. PBF LLC’s working capital at December 31, 2019 was $1,281.7 million, consisting of $3,821.5 million in total current assets and $2,539.8 million in total current liabilities.

Working capital has decreased during the three months ended March 31, 2020 primarily as a result of losses for the period and the change in our LCM inventory adjustment, as well as capital expenditures, including turnaround costs, and dividends and distributions.
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Capital Spending
Net capitalCapital spending was $167.6$1,315.2 million for the ninethree months ended September 30, 2015,March 31, 2020, which primarily included costs for the construction of the Delaware City refinery hydrogen plant, which is expected to be completed in the second quarter of 2020, turnaround costs at our Toledo refinery, safety related enhancements and facility improvements at our refineries, the refineries.Martinez Acquisition and approximately $6.1 million of capital expenditures related to PBFX. Due to current challenging market conditions, we have taken strategic steps to increase our flexibility and responsiveness, one of which is the reduction of approximately $357.0 million in 2020 planned capital expenses. We currently expect to spend an aggregate of approximately $200.0$325.0 million to $375.0 million in net capital expenditures during 2015,2020, excluding any potential capital expenditures related to the Chalmette Acquisition,PBFX, for facility improvements, and refinery maintenance and turnarounds.turnarounds with the intention of satisfying all required safety, environmental and regulatory capital commitments. In addition, PBFX expects to spend an aggregate of approximately $12.0 million to $16.0 million in net capital expenditures during the remainder of 2020.
As noted in "Business Developments",On February 1, 2020 we entered into a Saleacquired the Martinez refinery and Purchase Agreement to purchase the ownership interests of Chalmette Refining.related logistic assets. The aggregate purchase price for the ChalmetteMartinez Acquisition was $322.0$960.0 million in cash, plus inventory andfinal working capital of $233.1$216.1 million which is subject to final valuation within ninety days of closing. The Chalmette Acquisition closed on November 1, 2015.and $77.3 million in the Martinez Contingent Consideration. The transaction was financed through a combination of cash on hand, including proceeds from our 2028 Senior Notes, and borrowings under our existing credit facility. A determinationRevolving Credit Facility.
Contractual Obligations and Commitments
In connection with the Martinez Acquisition and related financing transactions, including the 2028 Senior Notes offering and the redemption of the acquisition-date fair values2023 Senior Notes, we entered into or assumed certain contractual obligations and commitments, as described below, not previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019.
In connection with the issuance of the assets acquired2028 Senior Notes and the liabilities assumedredemption of the 2023 Senior Notes during the three months ended March 31, 2020, our long-term debt obligations were reduced in 2023 for the $500.0 million redemption of the 2023 Senior Notes and increased in 2028 by $1.0 billion for the working capital at closing calculation is pendingissuance of the completion2028 Senior Notes. The 2028 Senior Notes pay interest semi-annually in cash in arrears on February 15 and August 15 each year, beginning on August 15, 2020 and will mature on February 15, 2028. During the first quarter of an independent appraisal2020, we also incurred borrowings under the Revolving Credit Facility to fund a portion of the Martinez Acquisition and for other general corporate purposes. At March 31, 2020, we had outstanding borrowings under the Revolving Credit Facility of $900.0 million that are currently due in May 2023. As a result of this debt activity, our obligation to make interest payments on outstanding debt increased as follows: $8.5 million in 2020, $43.0 million in 2021 and 2022, $32.5 million in 2023, and a $60.0 million annually thereafter until the maturity of the 2028 Senior Notes.
Refer to “Note 7 - Debt” of our Notes to Condensed Consolidated Financial Statements for further information.
We have entered into certain leases and other evaluations.rental-related agreements in connection with the Martinez Acquisition that resulted in additional contractual obligations as follows: $11.3 million in 2020, $20.2 million in aggregate in 2021 and 2022, $18.9 million in aggregate in 2023 and 2024 and $37.4 million thereafter.
In connection with the Martinez Acquisition, we entered into various five-year crude supply agreements for approximately 145,000 bpd, which are subject to certain volume reductions at our discretion. Following the COVID-19 pandemic and extraordinary market disruption and volatility that it has caused, there has been a significant decrease in the market price of crude oil. While the extent of this market disruption and duration of significantly lower crude oil prices is uncertain, if it does persist for an extended period of time, our obligations for our crude and feedstock supply agreements would be significantly less than the amounts disclosed in our Annual Report on Form 10-K for the year ended December 31, 2019.
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The information above does not include future interest and principal payments related to the May 2020 issuance of $1.0 billion in aggregate principal amount of the 2025 Senior Secured Notes. The 2025 Senior Secured Notes pay interest semi-annually in cash in arrears on May 15 and November 15 of each year, beginning on November 15, 2020 and will mature on May 15, 2025. Additionally, in connection with our sale of five hydrogen facilities subsequent to March 31, 2020, we have agreed to enter into long-term off-take arrangements covering hydrogen produced at each of the five plants on terms in line with similar arrangements in place elsewhere in its refining system. Refer to “Note 20 - Subsequent Events” of our Notes to Condensed Consolidated Financial Statements for further information.
Crude and Feedstock Supply Agreements
Certain of our purchases of crude oil under our agreements with foreign national oil companies require that we post letters of credit, if open credit terms are exceeded, and arrange for shipment. We alsopay for the crude when invoiced, at which time any applicable letters of credit are lifted. We have a contract with Saudi Arabian Oil Company (“Saudi Aramco”) pursuant to which we have been purchasing up to approximately 100,000 bpd of crude oil from Saudi Aramco that is processed at our Paulsboro refinery. In connection with the acquisition of the Chalmette refinery we entered into a Salescontract with Petróleos de Venezuela S.A. (“PDVSA”) for the supply of 40,000 to 60,000 bpd of crude oil that can be processed at any of our East or Gulf Coast refineries. We have not sourced crude oil under this agreement since 2017 when PDVSA suspended deliveries due to the parties’ inability to agree to mutually acceptable payment terms and Purchase Agreement to Purchasebecause of U.S. government sanctions against PDVSA. Notwithstanding the ownership interestsuspension, the recent U. S. sanctions imposed against PDVSA and Venezuela would prevent us from purchasing crude oil under this agreement. In connection with the closing of the acquisition of the Torrance refinery, we entered into a crude supply agreement with Exxon Mobil Oil Corporation (“ExxonMobil”) for approximately 60,000 bpd of crude oil that can be processed at our Torrance refinery. We currently purchase all of our crude and related logistic assets. The purchase price for the Torrance Acquisition is $537.5 million in cash, plus inventory and working capital to be valued at closing. The purchase price is also subject to other customary purchase price adjustments. The Torrance Acquisition is expected to close in the second quarter of 2016, subject to satisfaction of customary closing conditions. We expect to finance the transaction with a combination of cash on hand, debt, including the proceedsfeedstock needs independently from the issuance of the 7.0% Senior Secured Notes due 2023, and proceeds contributed to us in connection with PBF Energy's October 2015 Equity Offering.

Share Repurchases
On August 19, 2014, PBF Energy's Board of Directors authorized the repurchase of up to $200.0 million of the Company's  Series C Units, through the repurchase of PBF Energy’s Class A common stock (the "Repurchase Program"). On October 29, 2014, PBF Energy's Board of Directors approved an additional $100.0 million increase to the existing Repurchase Program. As of September 30, 2015, the Company has purchased approximately 6.05 million of the Company's Series C Units under the Repurchase Program, for a total of $150.8 million through the purchase of PBF Energy’s Class A common stock in open market transactions. As of September 30, 2015, PBF Energy has the ability to purchase an additional $149.2 million in Class A common stock under the approved Repurchase Program.
These repurchases may be made from time to time through various methods, including open market transactions, block trades, accelerated share repurchases, privately negotiated transactions or otherwise, certain of which may be effected through Rule 10b5-1 and Rule 10b-18 plans. The timing and number of shares repurchased will depend on a variety of factors, including price, capital availability, legal requirementssuppliers on the spot market or through term agreements for our Delaware City and economicToledo refineries.
We have entered into various five-year crude supply agreements with Shell Oil Products for approximately 145,000 bpd, in the aggregate, to support our West Coast and market conditions.Mid-Continent refinery operations. In addition, we have entered into certain offtake agreements for our West Coast system with the same counterparty for clean products with varying terms up to 15 years.
Inventory Intermediation Agreements
We entered into Inventory Intermediation Agreements with J. Aron, to support the operations of the East Coast Refineries. The Inventory Intermediation Agreement by and among J. Aron, PBF Energy isHolding and DCR expires on June 30, 2021, which term may be further extended by mutual consent of the parties to June 30, 2022. The Inventory Intermediation Agreement by and among J. Aron, PBF Holding and PRC expires on December 31, 2021, which term may be further extended by mutual consent of the parties to December 31, 2022. If not obligatedextended, at expiration, we will be required to purchase any sharesrepurchase the inventories outstanding under the Repurchase Program,Inventory Intermediation Agreement at that time.
Pursuant to each Inventory Intermediation Agreement, J. Aron purchases and repurchases may be suspended or discontinued at any time without prior notice.holds title to the J. Aron Products produced by the East Coast Refineries, and delivered into our J. Aron Storage Tanks. J. Aron has agreed to sell the J. Aron Products back to the East Coast Refineries as they are discharged out of our J. Aron Storage Tanks. J. Aron has the right to store the J. Aron Products purchased in tanks under the Inventory Intermediation Agreements and will retain these storage rights for the term of the agreements. PBF Holding continues to market and sell the J. Aron Products independently to third parties.
At March 31, 2020, the LIFO value of crude oil, intermediates and finished products owned by J. Aron included within Inventory in our Condensed Consolidated Balance Sheets was $270.8 million. We accrue a corresponding liability for such crude oil, intermediates and finished products.
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Off-Balance Sheet Arrangements and Contractual Obligations and Commitments

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We have no off-balance sheet arrangements as of September 30, 2015,March 31, 2020, other than outstanding letters of credit in the amount of approximately $152.7$198.0 million.
In March 2015, we sold 515 of our owned crude railcars and concurrently entered into a lease agreement for the same railcars. The lease agreements for the railcars have varying terms from five to seven years. We received a cash payment for the railcars of approximately $77.6 million and expect to make payments totaling $44.9 million over the term of the lease for these railcars.
In June 2015, we sold 404 of our owned crude railcars and concurrently entered into lease agreements for the same railcars. The lease agreements for the railcars have varying terms from five to six years. We received aggregate cash payments for the railcars of approximately $60.5 million and expect to make payments totaling $36.0 million over the term of the lease for these railcars.
In July 2015, we sold 131 of our owned crude railcars and concurrently entered into lease agreements for the same railcars. The lease agreements for the railcars have six year terms. We received aggregate cash payments for the railcars of approximately $19.3 million and expect to make payments totaling $11.9 million over the term of the lease for these railcars.
In August 2015, we sold 72 of our owned crude railcars and concurrently entered into lease agreements for the same railcars. The lease agreements for the railcars have six year terms. We received aggregate cash payments for the railcars of approximately $10.8 million and expect to make payments totaling $6.6 million over the term of the lease for these railcars.
During the nine months ended September 30, 2015, we entered into additional railcar leases with terms of up to 7 years. We expect to make lease payments of $38.7 million over the remaining term of these additional agreements.

Tax Receivable Agreement Obligations
We expect that the payments that we may make under the Tax Receivable Agreement will be substantial. As of March 31, 2020, PBF Energy usedhas recognized a portionliability for the Tax Receivable Agreement of $385.1 million reflecting our estimate of the proceeds from its initial public offeringundiscounted amounts that we expect to purchase PBF LLC Series A Units frompay under the membersagreement due to exchanges of PBF LLC other than PBF Energy. In addition, the members of PBF LLC other than PBF Energy may (subject to the terms of the exchange agreement) exchange their PBF LLC Series A Units for shares of PBF Energy’s Class A common stock that occurred prior to that date, and to range over the next five years from approximately $30.0 million to $65.0 million per year and decline thereafter. In addition, under certain circumstances, our obligations under the Tax Receivable Agreement may be accelerated and determined based on certain assumptions set forth therein. Assuming that the market value of PBF Energy on a one-for-one basis. As a result of both the purchase of PBF LLC Series A Units and subsequent secondary offerings and exchanges, PBF Energy is entitled to a proportionate share of our Class A common stock equals $7.08 per share (the closing price on March 31, 2020) and that LIBOR were to be 1.85%, we estimate as of March 31, 2020 that the existing tax basisaggregate amount of the assets of PBF LLC. Such transactions have resulted in increases in the tax basis of the assets of PBF LLC that otherwisethese accelerated payments would not have been available. Both this proportionate share and these increases in tax basis may reduce the amount of tax that PBF Energy would otherwise be required to pay in the future. These increases in tax basis have reduced the amount of the tax that PBF Energy would have otherwise been required to pay and may also decrease gains (or increase losses)approximately $330.2 million if triggered immediately on the future disposition of certain capital assets to the extent the tax basis is allocated to those capital assets. PBF Energy entered into a tax receivable agreement with the current and former members of PBF LLC other than PBF Energy that provides for the payment by PBF Energy to such members of 85% of the amount of the benefits, if any, that PBF Energy is deemed to realize as a result of (i) these increases in tax basis 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.date. These payment obligations are obligations of PBF Energy and not of PBF LLC or any of its subsidiaries.
subsidiaries including PBF Holding or PBFX. However, because PBF Energy expects to obtain funding for these payments by causingis a holding company with no operations of its subsidiariesown, PBF Energy’s ability to make cashpayments under the Tax Receivable Agreement is dependent upon a number of factors, including its subsidiaries’ ability to make distributions to PBF LLC, which, in turn, will distribute such amounts, generally as tax distributions, on a pro-rata basis to its owners, which as of September 30, 2015 includefor the membersbenefit of PBF LLC other thanLLC’s members, including PBF Energy, holding a 5.6% interestits ability, if necessary, to finance its obligations under the Tax Receivable Agreement and existing indebtedness which may limit PBF Energy holding a 94.4% interest. The membersEnergy’s subsidiaries’ ability to make distributions.
Future payments under the Tax Receivable Agreement by us in respect of PBF LLC other than PBF Energy may continue to reduce their ownership in PBF LLC by exchanging theirsubsequent exchanges of PBF LLC Series A Units for shares of PBF Energy Class A common stock. Such exchanges may resultstock would be in additional increasesaddition to the amounts above and are expected to be substantial. The foregoing numbers are merely estimates - the actual payments could differ materially and assume that there are no material changes in the relevant tax basis of PBF Energy’s investment in PBF LLClaw, and require PBF Energythat we earn sufficient taxable income to make increased payments underrealize all tax benefits that are subject to the tax receivable agreement. Required payments under the tax receivable agreement also mayTax Receivable Agreement. It is possible that future transactions or events could increase or become accelerated in certain circumstances, including certain changes of control.decrease the actual tax benefits realized and the corresponding Tax Receivable Agreement payments.


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Dividend and Distribution Policy
PBF Energy
With respect to dividends and distributions paid during the ninethree months ended September 30, 2015,March 31, 2020, PBF LLC made aggregate non-tax quarterly distributions of $82.0$36.2 million, or $0.90,$0.30 per unit to its members, of which $77.3$35.9 million was distributed pro ratapro-rata to PBF Energy and the balance was distributed to its other members. PBF Energy used this $77.3$35.9 million to pay quarterly cash dividends of $0.30 per share of Class A common stock on March 10, 2015, May 27, 201517, 2020.
While it is impossible to estimate the duration or ultimate financial impact of the COVID-19 pandemic on our business, we expect our future results subsequent to the quarter ending March 31, 2020 will be adversely impacted in a significant manner. As part of our strategic plan to navigate these current extraordinary and August 10, 2015. In addition, during the nine months ended September 30, 2015,volatile markets, we have suspended PBF LLC made aggregate tax distributions to its members of $186.1 million, of which $175.6 million was distributed to PBF Energy.
On October 29, 2015, the Board of Directors of PBF Energy declared aEnergy’s quarterly dividend of $0.30 per share on outstandingits Class A common stock. We will continue to monitor and evaluate our dividend policy as market conditions develop and our business outlook becomes clearer.
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The dividenddeclaration, amount and payment of any future dividends on shares of PBF Energy Class A common stock will be at the sole discretion of PBF Energy’s Board Of Directors, and we are not obligated under any applicable laws, our governing documents or any contractual agreements with our existing owners or otherwise to declare or pay any dividends or other distributions (other than the obligations of PBF LLC to make tax distributions to its members).
PBF Logistics LP
Due to the uncertainty of the full impact of the COVID-19 pandemic will have on its business, PBFX has decided to reduce their quarterly distribution to its minimum quarterly distribution of $0.30 per unit, which represents a short term shift in its distribution strategy to build cash flow coverage, de-lever the business and strengthen its financial resources. However, PBFX intends to continue to pay at least the minimum quarterly distribution of $0.30per unit per quarter, or $1.20 per unit on an annualized basis, which aggregates to approximately $18.9 million per quarter and approximately $75.6 million on an annualized basis, based on the number of common units outstanding as of March 31, 2020.
During the three months ended March 31, 2020, PBFX made quarterly cash distributions totaling $32.3 million of which $15.6 million was distributed to PBF LLC and the balance was distributed to its public unitholders.
On May 15, 2020, the Board of Directors of PBFX’s general partner, PBF GP, announced a distribution of $0.30 per unit on outstanding common units of PBFX. The distribution is payable on November 24, 2015June 17, 2020 to Class APBFX common stockholdersunitholders of record at the close of business on November 9, 2015. PBF Holding intends, if necessary, to make a distribution of $30.8 million to PBF LLC, which in turn will make pro-rata distributions of $0.30 per unit to its members, including PBF Energy. PBF Energy will then use this distribution to fund the dividend payments to the shareholders of PBF Energy.May 27, 2020.
As of September 30, 2015, PBF LLCMarch 31, 2020, PBFX had $1,096.2$4.8 million outstanding letters of unused borrowing availability, which includes PBF Holding'scredit and $112.2 million available under the PBFX Revolving Credit Facility and cash and cash equivalents of $369.4$116.0 million under the Revolving Loan to fund its operations, if necessary. Accordingly, as of September 30, 2015,March 31, 2020, there was sufficient cash and cash equivalents and borrowing capacity under its credit facilities available to make distributions to PBF LLC, in order for PBF LLC to make pro rata distributions to its members, including PBF Energy, necessary to fund in excess of one year’s cash dividend payments by PBF Energy.
Since, as described above, there was sufficient cash and cash equivalents and borrowing capacity as of September 30, 2015, PBF Holding would have been permitted under our debt agreements to make these distributions; however, our ability to continue to comply with our debt covenants is, to a significant degree, subject to our operating results, which are dependent on a number of factors outside of our control. We believe our and our subsidiaries' available cash and cash equivalents, other sources of liquidity to operate our business and operating performance provides us with a reasonable basis for our assessment that we can support PBF Energy's intended distribution policy.

PBF Logistics LP
PBFX intends to pay a minimum quarterly distribution of at least $0.30per unit per quarter, or $1.20 per unit on an annualized basis, which aggregates to approximately $10.4 million per quarter and approximately $41.6 million per year based on the number of common and subordinated units outstanding as of September 30, 2015. During the nine months ended September 30, 2015, PBFX made quarterly cash distributions totaling $35.8 million of which $18.7 million was distributed to PBF LLC and the balance was distributed to its public unit holders.
On October 29, 2015, the Board of Directors of PBFX's general partner, PBF GP, declared a distribution of $0.39 per unit on outstanding common and subordinated units of PBFX. The distribution was paid on November 30, 2015 to PBFX common and subordinated unit holders of record at the close of business on November 13, 2015.
As of September 30, 2015, PBFX had $298.5 million of unused borrowing availability under the PBFX Revolving Credit Facility and cash and cash equivalents of $18.2 million to fund its operations, if necessary. Accordingly, as of September 30, 2015, there was sufficient cash and cash equivalents and borrowing capacity under our credit facilities available to PBFX to make distributions to unit holders.unitholders.

Critical Accounting Estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes. Actual results could differ from those estimates. Our critical accounting estimates are included in our annual report on Form 10-K for the year ended December 31, 2019. As of March 31, 2020, the following accounting policy is included as it involves estimates that are considered critical due to the level of subjectivity and judgment involved, as well as the impact on our financial position and results of operations. We believe that all of our estimates are reasonable. Estimates of the sensitivity to earnings that would result from changes in the assumptions used in determining our estimates are not practicable due to the number of assumptions and contingencies involved, and the wide range of possible outcomes.

Impairment of Long-Lived Assets

Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. A long-lived asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If a long-lived asset is not recoverable, an impairment loss is recognized for the amount by which the carrying amount of the long-lived asset exceeds its fair value, with fair value determined based on discounted estimated net cash flows or other appropriate methods.
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The global crisis resulting from the COVID-19 pandemic has had a substantial impact on the economy and overall consumer demand for energy and hydrocarbon products. As a result of the significant decrease in PBF Energy’s stock price as of the end of the three months ended March 31, 2020 and noticeable reduction in demand for our products, we determined that an impairment triggering event had occurred. Therefore, we performed an interim impairment assessment on certain long-lived assets as of March 31, 2020. As a result of the interim impairment test, we determined that our long-lived assets were not impaired when comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from use of the assets over their remaining estimated useful life. If adverse market conditions persist or there is further deterioration in the general economic environment due to the COVID-19 pandemic, there could be additional indicators that our assets are impaired requiring evaluation that may result in future impairment charges to earnings. Refer to “Note 1 - Description of the Business and Basis of Presentation” of our Notes to Condensed Consolidated Financial Statements.



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Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks, including changes in commodity prices and interest rates. Our primary commodity price risk is associated with the difference between the prices we sell our refined products for and the prices we pay for crude oil and other feedstocks. We may use derivative instruments to manage the risks from changes in the prices of crude oil and refined products, natural gas, interest rates, or to capture market opportunities.

Commodity Price Risk
Our earnings, cash flow and liquidity are significantly affected by a variety of factors beyond our control, including the supply of, and demand for, crude oil, other feedstocks, refined products and natural gas. The supply of and demand for these commodities depend on, among other factors, changes in domestic and foreign economies, weather conditions, domestic and foreign political affairs, planned and unplanned downtime in refineries, pipelines and production facilities, production levels, the availability of imports, the marketing of competitive and alternative fuels, and the extent of government regulation. As a result, the prices of these commodities can be volatile. Our revenues fluctuate significantly with movements in industry refined product prices, our cost of sales fluctuates significantly with movements in crude oil and feedstock prices and our operating expenses fluctuate with movements in the price of natural gas. We manage our exposure to these commodity price risks through our supply and inventory intermediationofftake agreements as well as through the use of various commodity derivative instruments.
Certain of our agreements reduce the time we are exposed to market price fluctuations. For example, our crude and feedstock supply agreement with Statoil allows us to take title to and price our crude oil at locations in close proximity to our refineries, as opposed to the crude oil origination point. The crude supply agreement with MSCG for our Toledo refinery, which terminated on July 31, 2014, allowed us to price and pay for our crude oil as it is processed at that refinery.
We may use non-trading derivative instruments to manage exposure to commodity price risks associated with the purchase or sale of crude oil and feedstocks, finished products and natural gas outside of theour supply and offtake agreements. The derivative instruments we use include physical commodity contracts and exchange-traded and over-the-counter financial instruments. We mark-to-market our commodity derivative instruments and recognize the changes in their fair value in our statements of operations.
The negative impact of the unprecedented global health and economic crisis sparked by the COVID-19 pandemic, combined with the movements made by the world’s largest oil producers to increase market share in the current environment has created simultaneous shocks in oil supply and demand resulting in an economic challenge to our industry which has not occurred since our formation. This combination has resulted in significant demand reduction for our refined products and abnormal volatility in oil commodity prices, which may continue for the foreseeable future.
At September 30, 2015March 31, 2020 and December 31, 2014,2019, we had gross open commodity derivative contracts representing 47.96.3 million barrels and 49.311.3 million barrels, respectively, with an unrealized net gain of $22.8$2.4 million and $31.2$0.2 million, respectively. The open commodity derivative contracts as of September 30, 2015March 31, 2020 expire at various times during 2015 and 2016.2020.
We carry inventories of crude oil, intermediates and refined products (“hydrocarbon inventories”) on our balance sheet,Condensed Consolidated Balance Sheets, the values of which are subject to fluctuations in market prices. Our hydrocarbon inventories totaled approximately 19.333.5 million barrels and 18.630.2 million barrels at September 30, 2015March 31, 2020 and December 31, 2014,2019, respectively. The average cost of our hydrocarbon inventories was approximately $95.09$75.82 and $94.29$79.63 per barrel on a LIFO basis at September 30, 2015March 31, 2020 and December 31, 2014,2019, respectively, excluding the net impact of LCM inventory adjustments of approximately $771.3$1,687.2 million and $690.1$401.6 million, respectively. If market prices of our inventory decline to a level below theour average cost, we may be required to further write down the carrying value of our hydrocarbon inventories to market.
Our predominant variable operating cost is energy, which is comprised primarily of natural gas and electricity. We are therefore sensitive to movements in natural gas prices. Assuming normal operating conditions, we annually consume a total of approximately 37expect our annual consumption to range from 75 million to 100 million MMBTUs of natural gas amongstin total across our threesix refineries. Accordingly, a $1.00 per MMBTU change in natural gas prices would increase or decrease our natural gas costs by approximately $37$75.0 million to $100.0 million.


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Compliance Program Price Risk
We are exposed to market risks related to the volatility in the price of Renewable Identification Numbers ("RINs")credits needed to comply with various governmental and regulatory compliance programs, which includes RINs, required to comply with the Renewable Fuel Standard.RFS. Our overall RINs obligation is based on a percentage of our domestic shipments of on-road fuels as established by the EPA.Environmental Protection Agency (“EPA”). To the degree we are unable to blend the required amount of biofuels to satisfy our RINs obligation, we must purchase RINs on the open market. To mitigate the impact of this risk on our results of operations and cash flows we may purchase RINs or other environmental credits when the price of these instruments is deemed favorable.

In addition, we are exposed to risks associated with complying with federal and state legislative and regulatory measures to address greenhouse gas and other emissions. Requirements to reduce emissions could result in increased costs to operate and maintain our facilities as well as implement and manage new emission controls and programs put in place. For example, AB32 in California requires the state to reduce its GHG emissions to 1990 levels by 2020. Compliance with such emission standards may require the purchase of emission credits or similar instruments.
Certain of these compliance contracts or instruments qualify as derivative instruments. We generally elect the normal purchase normal sale exception under ASC 815, Derivatives and Hedging, for such instruments, and therefore do not record these contracts at their fair value.
Interest Rate Risk
The maximum commitment under our Revolving Credit Facility is $3.4 billion. Borrowings under the Revolving LoanCredit Facility bear interest either at the Alternative Base Rate plus the Applicable Margin or at the Adjusted LIBOR Rate plus the Applicable Margin, all as defined in the agreement. The Applicable Margin ranges from 1.50% to 2.25% for Adjusted LIBOR Rate Loans and from 0.50% to 1.25% for Alternative Base Rate Loans, depending on the Company's debt rating.Revolving Credit Agreement. If this facility werewas fully drawn, a one percent1.0% change in the interest rate would increase or decrease our interest expense by $26.0approximately $24.9 million annually.
The PBFX Revolving Credit Facility, andwith a maximum commitment of $500.0 million, bears interest either at the Alternative Base Rate plus the Applicable Margin or at Adjusted LIBOR plus the Applicable Margin, all as defined in the PBFX Revolving Credit Agreement. If this facility was fully drawn, a 1.0% change in the interest rate would increase or decrease our interest expense by approximately $4.6 million annually.
In addition, the PBF Rail Term Loan, bearwhich bears interest at a variable rate, and exposes us to interest rate risk.had an outstanding principal balance of $12.8 million at March 31, 2020. A 1.0% change in the interest rate associated with the borrowings outstanding under these facilities would result in a $4.5 million change inincrease or decrease our interest expense by approximately $0.1 million annually, assuming we were to borrow all $325.0 million under our PBFX Revolving Credit Facility and the current outstanding principal balance of our PBFXon the PBF Rail Term Loan was $234.2 million.
The Rail Facility bears interest at a variable rate and exposes us to interest rate risk. A 1.0% change in the interest rate associated with the borrowings outstanding under this facility would result in a $1.5 million change in our interest expense, assuming the $150.0 million available under the Rail Facility were fully drawn.remained outstanding.
We also have interest rate exposure in connection with our Statoil crude oil agreement and J. Aron Inventory Intermediation Agreements under which we pay a time value of money charge based on LIBOR.

Credit Risk
We are subject to risk of losses resulting from nonpayment or nonperformance by our counterparties. We will continue to closely monitor the creditworthiness of customers to whom we grant credit and establish credit limits in accordance with our credit policy.

We continually monitor our market risk exposure, including the impact and developments related to the COVID-19 pandemic combined with the movements made by the world’s largest oil producers to increase market share in the current environment, which have introduced significant volatility in the financial markets subsequent to our year ended December 31, 2019.
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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures
PBF Energy and PBF LLC maintains a system of disclosure controls and procedures that is designed to provide reasonable assurance that information which is required to be disclosed is accumulated and communicated to management in a timely manner. Underconducted separate evaluations, under the supervision and with the participation of oureach company’s management, including PBF LLC'sthe principal executive officer and the principal financial officer, we have evaluatedof the effectiveness of our system ofthe disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934 as amended (the “Exchange Act”)) as of March 31, 2020. Based upon these evaluations, as required by Exchange Act Rule 13a-15(b) as of September 30, 2015. Based on that evaluation, PBF LLC's, the principal executive officer and the principal financial officer, havein each case, concluded that PBF LLC'sthe disclosure controls and procedures are effective at the reasonable assurance level.as of March 31, 2020.


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Changes in Internal Control Over Financial Reporting
On February 1, 2020, we completed the Martinez Acquisition. We are in the process of integrating Martinez Refining Company LLC’s (“Martinez Refining”) operations, including internal controls over financial reporting and, therefore, management's evaluation and conclusion as to the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q excludes any evaluation of the internal controls over financial reporting of Martinez Refining. We expect the integration of Martinez Refining's operations, including internal controls over financial reporting to be complete within one year of its acquisition. Martinez Refining accounts for approximately 9% of our total assets and approximately 9% of our total revenues as of and for the quarter ended March 31, 2020.
Management has not identified any other changes in PBF LLC'sEnergy's or PBF LLC’s internal controlcontrols over financial reporting that occurred during the three monthsquarter ended September 30, 2015March 31, 2020 that havehas materially affected, or areis reasonably likely to materially affect, itsPBF Energy’s or PBF LLC’s internal controlcontrols over financial reporting.


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PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Delaware City Rail Terminal and DCR West Rack are collocated with the Delaware City refinery, and are located in Delaware's coastal zone where certain activities are regulated under the Delaware Coastal Zone act. On June 14, 2013, two administrative appeals were filed by the Sierra Club and Delaware Audubon (collectively the "Appellants") regarding an air permit Delaware City Refining Company LLC ("Delaware City Refining" or "DCR") obtained to allow loading of crude oil onto barges. The appeals allege that both the loading of crude oil onto barges and the operation of the Delaware City Rail Terminal violate Delaware’s Coastal Zone Act. The first appeal is Number 2013-1 before the State Coastal Zone Industrial Control Board (the “CZ Board”), and the second appeal is before the Environmental Appeals Board (the "EAB") and appeals Secretary’s Order No. 2013-A-0020. The CZ Board held a hearing on the first appeal on July 16, 2013, and ruled in favor of Delaware City Refining and the State of Delaware and dismissed the Appellants’ appeal for lack of standing. The Appellants appealed that decision to the Delaware Superior Court, New Castle County, Case No. N13A-09-001 ALR, and Delaware City Refining and the State of Delaware filed cross-appeals. A hearing on the second appeal before the EAB, case no. 2013-06, was held on January 13, 2014, and the EAB ruled in favor of DCR and the State and dismissed the appeal for lack of jurisdiction. The Appellants also filed a Notice of Appeal with the Superior Court appealing the EAB’s decision. On March 31, 2015 the Superior Court affirmed the decisions by both the CZ Board and the EAB stating they both lacked jurisdiction to rule on the Appellants' appeal. The Appellants appealed to the Delaware Supreme Court, and, on November 5, 2015, the Supreme Court affirmed the Superior Court decision.
On July 24, 2013, the Delaware Department of Natural Resources and Environmental Control ("DNREC"(“DNREC”) issued a Notice of Administrative Penalty Assessment and Secretary’s Order to Delaware City RefiningDCR for alleged air emission violations that occurred during the re-start of the refinery in 2011 and subsequent to the re-start. The penalty assessment seekssought $460,200 in penalties and $69,030 in cost recovery for DNREC’s expenses associated with investigation of the incidents. We disputePursuant to a settlement agreement entered into on or about July 11, 2019 by and between DCR and DNREC (“Settlement Agreement”), DCR resolved this and other Notices of Violation (“NOV”) as well as potential claims available to DNREC for any noncompliance with air quality matters related to activities at the amountDelaware City refinery occurring between June 1, 2010 and October 31, 2018, including associated Title V Permit deviations and particulate matter emissions from certain coke management facilities. The Settlement Agreement provides for resolution of DNREC’s claims, a penalty payment by DCR of $950,000, and no admission of liability by DCR. The Settlement Agreement will also result in modification and reissuance by DNREC of certain air quality permits for the Delaware City refinery to resolve objections made by DCR to certain prior permit conditions. Testing of the penalty assessmentaforementioned coke management facilities was conducted in September 2019 and allegationsconfirmed compliance with operating permit limits.
The Delaware City refinery appealed a Notice of Penalty Assessment and Secretary’s Order issued in March 2017, including a $150,000 fine, alleging violation of a 2013 Secretary’s Order authorizing crude oil shipment by barge. DNREC asserted that the Delaware City refinery had violated the Secretary’s 2013 Order by allegedly failing to make timely and full disclosure to DNREC about the nature and extent of those shipments, and allegedly misrepresenting the number of shipments that went to other facilities. The Penalty Assessment and Secretary’s Order conclude that the 2013 Secretary’s Order was violated by the refinery by shipping crude oil from the Delaware City terminal to three locations other than the Paulsboro refinery, on 15 days in 2014, making a total of 17 separate barge shipments containing approximately 35.7 million gallons of crude oil in total. On April 28, 2017, the Delaware City refinery appealed the Notice of Penalty Assessment and Secretary’s Order. On March 5, 2018, Notice of Penalty Assessment was settled by DNREC, the Delaware Attorney General and Delaware City refinery for $100,000. The Delaware City refinery made no admissions with respect to the alleged violations and agreed to request a Coastal Zone Act status decision prior to making crude oil shipments to destinations other than Paulsboro. The Delaware City refinery has paid the penalty. The Coastal Zone Act status decision request was submitted to DNREC and the outstanding appeal was withdrawn as required under settlement agreement. DNREC has confirmed that DCR has fully satisfied its obligations under the agreement, and therefore that the resolution of liability provided under the agreement has taken effect.
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On December 28, 2016, DNREC issued the Coastal Zone Act permit for ethanol (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 order,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. On remand, the Coastal Zone Board met on January 28, 2019 and are in discussions with DNRECreversed its previous decision on standing ruling that the appellants have standing to resolveappeal the assessment.
Asissuance of November 1, 2015, the Company acquired Chalmette Refining, which is in discussionsEthanol Permit. The parties to the action filed a joint motion with the Louisiana DepartmentCoastal Zone Board, requesting that the Board concur with the parties’ proposal to secure from the Superior Court confirmation that all rights and claims are preserved for any subsequent appeal to the Superior Court, and that the matter then be scheduled for a hearing on the merits before the Coastal Zone Board. The Coastal Zone Board notified the parties in January of Environmental Quality ("LDEQ")2020 that it concurred with the parties proposed course of action. The appellants and DCR subsequently filed a motion with the Superior Court requesting relief consistent with what was described to resolve self-reported deviations fromthe Coastal Zone Board. In February of 2020, the Superior Court scheduled a conference with counsel for April 3, 2020 to discuss the issues. In addition, the Superior Court issued to the parties a letter, dated March 4, 2020, reporting that the Court would not retain jurisdiction and that the case could proceed to a merits hearing before the Coastal Zone Board. The parties must, therefore, submit to the Coastal Zone Board a joint proposed schedule to govern future proceedings related to the merits hearing.

In connection with the acquisition of the Torrance refinery operations relatingand related logistics assets, we assumed certain pre-existing environmental liabilities related to certain Clean Air Act Title V permit conditions, limitsenvironmental remediation obligations to address existing soil and other requirementsgroundwater contamination and monitoring activities, which reflect the estimated cost of the remediation obligations. In addition, in connection with the acquisition of the Torrance refinery and related logistics assets, we purchased a ten year, $100.0 million environmental insurance policy to insure against unknown environmental liabilities. Furthermore, in connection with the acquisition, we assumed responsibility for certain specified environmental matters that occurred prior to our ownership of the refinery and logistics assets, including specified incidents and/or NOVs issued by regulatory agencies in various years before our 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 Company. LDEQ commenced an enforcement action against Chalmette Refining onSCAQMD, 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 our acquisition. EPA in November 14, 2014 by issuing2016 conducted a Consolidated Compliance OrderRisk Management Plan (“RMP”) inspection following the acquisition related to Torrance operations and Noticeissued preliminary findings in March 2017 concerning RMP potential operational violations. Since EPA’s issuance of Potential Penalty ("CCO/NOPP") covering deviations from 2009the preliminary findings in March 2017, we have been in substantive discussions to resolve the preliminary findings. Effective January 9, 2020, we and 2010. Chalmette Refining and LDEQ subsequentlyEPA entered into a dispute resolution agreement,Consent Agreement and Final Order (“CAFO”), effective as of January 9, 2020, which suspends enforcementcontains no admission by us for any alleged violations in the CAFO, includes a release from all alleged violations in the CAFO, requires payment of a penalty of $125,000 and the implementation of a supplemental environmental project (“SEP”) of at least $219,000 that must be completed by December 15, 2021. The SEP will consist of configuring the northeast fire water monitor to automatically deploy water upon detection of a release.
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. On June 14, 2018, the Torrance refinery and DTSC reached settlement regarding the oil bearing materials. Following this settlement, in June 2018, DTSC referred the remaining alleged RCRA
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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 alleged remaining RCRA violations.
On September 3, 2019, we received a letter from the SCAQMD proposing to settle a NOV relating to Title V deviations alleged to have occurred in the second half of 2016 for $465,000. On April 3, 2020, we settled this NOV for $350,000.
On May 8, 2020, we received a letter from the SCAQMD proposing to settle a NOV relating to Title V deviations alleged to have occurred in the first half of 2017 for $878,450.We are evaluating the allegations and will be communicating with the SCAQMD regarding the allegations and the settlement offer upon the completion of our review.
As the ultimate outcomes of the CCO/NOPP while negotiationsmatters discussed above are ongoing. It is possible that LDEQ will assess an administrative penalty against Chalmette Refining,uncertain, we cannot currently estimate the final amount or timing of their resolution but any such amount is not expected to behave a material impact on our financial position, results of operations or cash flows, individually or in the aggregate.
On December 5, 1990, prior to our ownership of the Chalmette refinery, the plaintiff in Adam Thomas, et al. v. Exxon Mobil Corporation and Chalmette Refining, L.L.C., filed an action on behalf of himself and potentially thousands of other individuals in St. Bernard Parish and Orleans Parish who were allegedly exposed to hydrogen sulfide and sulfur dioxide as a result of more than 100 separate flaring events that occurred between 1989 and 2010. This litigation is proceeding as a mass action with individually named plaintiffs as a result of a 2008 trial court decision, affirmed by the court of appeals that denied class certification. The plaintiffs claim to have suffered physical injuries, property damage, and other damages as a result of the releases. Plaintiffs seek to recover unspecified compensatory and punitive damages, interest, and costs. The court had scheduled an October 2019 mini-trial of up to 10 plaintiffs, relating to as many as 5 separate flaring events that occurred between 2002 and 2007. However, on October 9, 2019, the parties reached an agreement in principle to settle this matter, which is expected to result in the dismissal with prejudice of all outstanding claims. Although the settlement resolution has not been finalized, we presently believe the outcome will not have a material impact on our financial position, results of operations, or cash flows.
On February 17, 2017, in Arnold Goldstein, et al. v. Exxon Mobil Corporation, et al., we and PBF LLC, and our subsidiaries, PBF Western Region LLC and Torrance Refining and the manager of our Torrance refinery along with ExxonMobil were named as defendants in a class action and representative action complaint filed on behalf of Arnold Goldstein, John Covas, Gisela Janette La Bella and others similarly situated. The complaint was filed in the Superior Court of the State of California, County of Los Angeles (the “Court”) and alleges negligence, strict liability, ultrahazardous activity, a continuing private nuisance, a permanent private nuisance, a continuing public nuisance, a permanent public nuisance and trespass resulting from the February 18, 2015 electrostatic precipitator (“ESP”) explosion at the Torrance refinery which was then owned and operated by ExxonMobil. The operation of the Torrance refinery by the PBF entities subsequent to our acquisition in July 2016 is also referenced in the complaint. To the extent that plaintiffs’ claims relate to the Company.ESP explosion, ExxonMobil has retained responsibility for any liabilities that would arise from the lawsuit pursuant to the agreement relating to the acquisition of the Torrance refinery. On July 2, 2018, the Court granted leave to plaintiffs’ to file a Second Amended Complaint alleging groundwater contamination. With the filing of the Second Amended Complaint, Plaintiffs’ added an additional plaintiff. On March 18, 2019, the class certification hearing was held and the judge took the matter under submission. On April 1, 2019, the judge issued an order denying class certification. On April 15, 2019, Plaintiffs filed a Petition with the Ninth Circuit for Permission to Appeal the Order Denying Motion for Class Certification. The appeal is currently pending with the Ninth Circuit. On May 3, 2019, Plaintiffs filed a Motion with the Central District Court for Leave to File a Renewed Motion for Class Certification. On May 22, 2019, the judge granted Plaintiffs’ motion. We filed our opposition to the motion on July 29, 2019. The Plaintiffs’ motion was heard on September 23, 2019. On October 15, 2019, the judge granted certification to two limited classes of property owners, rejecting two other proposed subclasses based on negligence and on strict liability for ultrahazardous activities. The certified


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subclasses relate to trespass claims for ground contamination and nuisance for air emissions. We presently believe the outcome will not have a material impact on our financial position, results of operations or cash flows.
On September 18, 2018, in Michelle Kendig and Jim Kendig, et al. v. ExxonMobil Oil Corporation, et al., PBF Energy Limited and Torrance Refining along with ExxonMobil Oil Corporation and ExxonMobil Pipeline Company were named as defendants in a class action and representative action complaint filed on behalf of Michelle Kendig, Jim Kendig and others similarly situated. The complaint was filed in the Superior Court of the State of California, County of Los Angeles and alleges failure to authorize and permit uninterrupted rest and meal periods, failure to furnish accurate wage statements, violation of the Private Attorneys General Act and violation of the California Unfair Business and Competition Law. Plaintiffs seek to recover unspecified economic damages, statutory damages, civil penalties provided by statute, disgorgement of profits, injunctive relief, declaratory relief, interest, attorney’s fees and costs. To the extent that plaintiffs’ claims accrued prior to July 1, 2016, ExxonMobil has retained responsibility for any liabilities that would arise from the lawsuit pursuant to the agreement relating to the acquisition of the Torrance refinery and logistics assets. On October 26, 2018, the matter was removed to the Federal Court, California Central District. A mediation hearing between the parties was held on August 23, 2019. From the mediation hearing, the parties have reached a tentative agreement in principle to settle. On March 17, 2019, plaintiffs filed with the court a Notice of Motion and Motion for Preliminary Approval of Settlement Agreement for the Court’s approval of the proposed settlement pursuant to which Torrance Refining would pay $2.9 million to resolve the matter and receive a full release and discharge from any and all claims and make no admission of any wrongdoing or liability. The Court has scheduled a hearing on May 1, 2020 to consider the settlement. We presently believe the outcome will not have a material impact on our financial position, results of operations or cash flows.
On September 7, 2018, in Jeprece Roussell, et al. v. PBF Consultants, LLC, et al., the Plaintiff filed an action in the 19th Judicial District Court for the Parish of East Baton Rouge, alleges numerous causes of action, including wrongful death, premises liability, negligence, and gross negligence against PBF Holding, PBFX Operating Company LLC, Chalmette Refining, two individual employees of the Chalmette refinery (the “PBF Defendants”), two entities, PBF Consultants, LLC (“PBF Consultants”) and PBF Investments LLC that are Louisiana companies that are not associated with our companies, as well as Clean Harbors, Inc. and Clean Harbors Environmental Services, Inc. (collectively, “Clean Harbors”), Mr. Roussell’s employer. Mr. Roussell was fatally injured on March 31, 2018 while employed by Clean Harbors and performing clay removal work activities inside a clay treating vessel located at the Chalmette refinery. Plaintiff seeks unspecified compensatory damages for pain and suffering, past and future mental anguish, impairment, past and future economic loss, attorney’s fees and court costs. On September 25, 2018, the PBF Defendants filed an answer in the state court action denying the allegations. On October 10, 2018, the PBF Defendants filed to remove the case to the United States District Court for the Middle District of Louisiana. On November 9, 2018, Plaintiff filed a motion to remand the matter back to state court and the PBF Defendants filed a response on November 30, 2018. On December 21, 2018, Plaintiff filed a motion for leave to file a reply memorandum and the reply memorandum was filed December 27, 2018. On April 15, 2019 the Federal Magistrate Judge filed a Report and Recommendation denying Plaintiff’s motion to remand and dismissing without prejudice the claims against John Sprafka, Wayne LaCombe, PBF Consultants and PBF Investments. On June 24, 2019, the Federal Judge adopted the Magistrate Judge’s Report and Recommendation denying Plaintiff’s motion to remand and dismissing without prejudice the claims against John Sprafka, Wayne LaCombe, PBF Consultants and PBF Investments. Discovery has been served by the parties. We cannot currently estimate the amount or the timing of the resolution of this matter. The PBF Defendants previously issued a tender of defense and indemnity to Clean Harbors and its insurer pursuant to indemnity obligations contained in the associated services agreement. Clean Harbors has accepted the tender of defense and indemnity, and Clean Harbors’ insurer has accepted the tender of defense and indemnity subject to a reservation of rights. We presently believe the outcome will not have a material impact on our financial position, results of operations or cash flows.
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In Varga, Sabrina, et al., v. CRU Railcar Services, LLC, et al., us and other of our entities were named as defendants along with CRU Railcar Services, LLC (“CRU”) in a lawsuit arising from a railcar explosion that occurred while CRU employees were cleaning a railcar owned by us. The initial lawsuit alleged that an employee of CRU was fatally injured as a result of the explosion. On July 5, 2019, a petition for intervention was filed alleging that another CRU employee was fatally injured in the same explosion. On October 7, 2019, a third CRU employee joined the lawsuit alleging severe injuries from the incident. We have issued a tender of defense and indemnity to CRU and its insurer pursuant to indemnity obligations contained in the associated services agreement which have not been accepted at this time. Discovery has been served by the parties. We cannot currently estimate the amount or the timing of the resolution of this matter. We presently believe the outcome will not have a material impact on our financial position, results of operations or cash flows.
We are subject to obligations to purchase RINs. On February 15, 2017, we received notification that EPA records indicated that PBF Holding used potentially invalid RINs that were in fact verified under 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. We have asserted the affirmative defense and if accepted by 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 EPA will not accept our defense and may assess penalties in these matters but any such amount is not expected to have a material impact on our financial position, results of operations or cash flows.
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 our sites are subject to these laws and we 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 our current normal operations, we have 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.


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Item 1A.Risk Factors
There have been no material changes fromThe following risk factors supplement and/or update the risk factors previously disclosed in our Annual Report on Form 10-K for the section entitled "Risk Factors"year ended December 31, 2019:
Risks Relating to Our Business and Industry
The recent outbreak of the COVID-19 pandemic and certain developments in the Prospectus.global oil markets are significantly affecting our business, financial condition and results of operations and may continue to do so, and our liquidity could also be negatively impacted, particularly if the U.S. economy remains unstable for a significant amount of time.

The recent outbreak of the COVID-19 pandemic and certain developments in the global oil markets are negatively impacting worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products. The COVID-19 pandemic and related governmental responses have also resulted in significant business and operational disruptions, including business closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. In addition, movements made by the world’s largest oil producers to increase market share in the current environment, combined with the impact of the COVID-19 pandemic, has created simultaneous shocks in oil supply and demand resulting in an economic challenge to our industry which has not occurred since our formation. This combination has resulted in significant demand reduction for our refined products and abnormal volatility in oil commodity prices, which may continue for the foreseeable future. The full impact of the COVID-19 pandemic and these market developments is unknown and is rapidly evolving. The full extent to which the COVID-19 pandemic and these market developments negatively impact our business and operations will depend on the severity, location and duration of the effects and spread of COVID-19, the actions undertaken by national, regional and local governments and health officials to contain the virus or treat its effects, and how quickly and to what extent economic conditions improve and normal business and operating conditions resume.

We are working with federal, state and local health authorities to respond to COVID-19 cases in the regions we operate and are taking or supporting measures to try to limit the spread of the virus and to mitigate the burden on the healthcare system. Many of these measures will have an adverse impact on our business and financial results that we are not currently able to fully quantify. For example, we are limiting onsite staff at all of our facilities to essential operational personnel. As a result, we are carefully evaluating projects at our refineries and limiting or postponing projects and other non-essential work. Based on market conditions, our refineries are currently operating at minimum rates. We plan to significantly reduce capital expenditures in the near term, while intending to satisfy and comply with all required safety, environmental and planned regulatory capital commitments and other regulatory requirements, although there are no assurances that we will be able to do so. Non-compliance with applicable environmental and safety requirements, including as a result of reduced staff due to an outbreak at one of our refineries, may subject us to fines or penalties assessed by governmental authorities or may result in an environmental or safety incident. We may also be subject to liability as a result of claims by impacted workers.

If we continue to experience low crude oil prices and deteriorating market conditions, our borrowing capacity under our Revolving Credit Facility may be reduced. As a result, we may require additional capital, and such additional financing may not be available on favorable terms or at all.
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Broad economic factors resulting from the current COVID-19 pandemic, including increasing unemployment rates, substantially reduced travel and reduced business and consumer spending, also affect our business. Business closings and layoffs in the markets we operate may adversely affect demand for our refined products. If general economic conditions continue to deteriorate or remain uncertain for an extended period of time, our liquidity and ability to repay our outstanding debt may be harmed and the trading price of PBF Energy’s Class A common stock, which has already significantly declined in recent weeks, could decline further.
In addition, our results and financial condition may be adversely affected by federal or state laws, regulations, orders, or other governmental or regulatory actions addressing the current COVID-19 pandemic or the U.S. refining industry, which, if adopted, could result in direct or indirect restrictions to our business, financial condition, results of operations and cash flow.
Furthermore, the current COVID-19 pandemic has caused disruption in the financial markets and the businesses of financial institutions. These factors have caused a slowdown in the decision-making of these institutions, which may affect the timing on which we may obtain any additional funding. There can be no assurance that we will be able to raise additional funds on terms acceptable to us, if at all.
The foregoing and other continued disruptions to our business as a result of the COVID-19 pandemic could result in a material adverse effect on our business, result of operations, financial condition, cash flows and our ability to service our indebtedness and other obligations.
To the extent the COVID-19 pandemic adversely affects our business, financial condition, results of operations and liquidity, it may also have the effect of heightening many of the other risks described in the “Risk Factors” section included in our Annual Report on Form 10-K for the year ended December 31, 2019 and in this Current Report on Form 10-Q, as those risk factors are amended or supplemented by subsequent Quarterly Reports on Form 10-Q and other reports and documents we file with the SEC after the date of this Current Report on Form 10-Q.
Our working capital, cash flows and liquidity can be significantly impacted by volatility in commodity prices and refined product demand.
Payment terms for our crude oil purchases are typically longer than those terms we extend to our customers for sales of refined products. Additionally, reductions in crude oil purchases tend to lag demand decreases for our refined products. As a result of this timing differential, the payables for our crude oil purchases are generally proportionally larger than the receivables for our refined product sales. As we are normally in a net payables position, a decrease in commodity prices generally results in a use of working capital. Given we process a significant volume of crude oil, the impact can materially affect our working capital, cash flows and liquidity.
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PBF Energy has suspended its quarterly dividend and cannot assure you that it will declare dividends in the future or have the available cash to make any future dividend payments.
On March 30, 2020, PBF Energy announced that it has suspended its quarterly dividend of $0.30 per share on its Class A common stock as part of its strategic plan to respond to the impact of the COVID-19 outbreak and related market activity. PBF Energy is not obligated under any applicable laws, its governing documents or any contractual agreements with its existing and prior owners or otherwise to declare or pay any dividends or other distributions (other than the obligations of PBF LLC to make tax distributions to its members). Any future declaration, amount and payment of any dividends will be at the sole discretion of our board of directors, however, because the impact of the COVID-19 outbreak and related market activity is difficult to predict, no assurance can be made when or whether our board of directors will determine to declare a dividend in the future. Our board of directors may take into account, among other things, general economic conditions, our financial condition and operating results, our available cash and current and anticipated cash needs, capital requirements, plans for expansion, including acquisitions, tax, legal, regulatory and contractual restrictions and implications, including under our subsidiaries’ outstanding debt documents, and such other factors as our board of directors may deem relevant in determining whether to declare or pay any dividend. Because PBF Energy is a holding company with no material assets (other than the equity interests of its direct subsidiary), its cash flow and ability to pay dividends is dependent upon the financial results and cash flows of its indirect subsidiaries PBF Holding and PBFX and their respective operating subsidiaries and the distribution or other payment of cash to it in the form of dividends or otherwise. The direct and indirect subsidiaries of PBF Energy are separate and distinct legal entities and have no obligation to make any funds available to it other than in the case of certain intercompany transactions. As a result, if PBF Energy does not declare or pay dividends you may not receive any return on an investment in PBF Energy Class A common stock unless you sell PBF Energy Class A common stock for a price greater than that which you paid for it.



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Exchange of the Company'sPBF LLC Series A Units forto PBF Energy Class A common stockCommon Stock
In the three months ended September 30, 2015, a total of 85,025 of the Company'sMarch 31, 2020, there were 203,277 PBF LLC Series A Units were exchanged for 85,025203,277 shares of PBF Energy Class A common stock in transactions exempt from registration under Section 4(2)4(a)(2) of the Securities Act. We received no other consideration in connection with theseany exchanges. No exchanges were made by any of our directors or current executive officers.
Share Repurchase Program
The Company has repurchased its Series C Units through the repurchase of PBF Energy’s Class A common stock in open market transactions. The following table summarizes PBF Energy Class A common stock repurchase activity during the three months ended September 30, 2015:

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 Total number of shares purchased (1) Average price paid per share (2) Total number of share purchased as part of publicly announced plans or programs Maximum approximate dollar value of shares that may yet be purchased under the plans or programs (in thousands)
July 1-31, 2015142,487
 $28.58
 142,487
 149,196
August 1-31, 2015—
 —
 —
 149,196
September 1-30, 2015—
 —
 —
 149,196
Total142,487
 $28.58
 142,487
 $149,196
(1) The shares purchased include only those shares that have settled as of the period end date.

(2) Average price per share excludes transaction commissions.

Item 6. Exhibits
The exhibits listed in the accompanying Exhibit Index are filed or incorporated by reference as part of this report and such Exhibit Index is incorporated herein by reference.

EXHIBIT INDEX
Exhibit
Number		Description
Exhibit
Number2.2
Description
2.1**Amendment No. 1 dated February 1, 2020 to Sale and Purchase Agreement dated June 11, 2019 by and between PBF Holding Company LLC and ExxonMobilEquilon Enterprises LLC d/b/a Shell Oil Corporation and its subsidiary, Mobil Pacific Pipeline Company as of September 29, 2015.(IncorporatedProducts US (incorporated by reference to Exhibit 2.12.2 filed with PBF Energy Inc.'s Current Report on Form 8-K dated February 6, 2020 (File No. 001-35764)).
Indenture dated as of January 24, 2020, among PBF Holding Company LLC, PBF Finance Corporation, the Guarantors named on the signature pages thereto, Wilmington Trust, National Association, as Trustee and Deutsche Bank Trust Company Americas, as Paying Agent, Registrar, Transfer Agent and Authenticating Agent (incorporated by reference to Exhibit 4.1 filed with PBF Energy Inc.’s Current Report on Form 8-K dated October 1, 2015January 24, 2020 (File No. 001-35764)).
10.1(2)Third Amended and Restated EmploymentRegistration Rights Agreement betweendated January 24, 2020, among PBF InvestmentsHolding Company LLC and Thomas D. O'Malley, Executive ChairmanPBF Finance Corporation, the Guarantors named therein and BofA Securities, Inc., as Representative of the Board of Directors of PBF Energy Inc. as of September 8, 2015. (Incorporatedseveral Initial Purchasers (incorporated by reference to Exhibit 10.14.3 filed with PBF Energy Inc.’s Current Report on Form 8-K dated September 11, 2015January 24, 2020 (File No. 001-35764)).
31.1*First Supplemental Indenture dated February 3, 2020, among PBF Holding Company LLC, PBF Finance Corporation, Martinez Refining Company LLC, Martinez Terminal Company LLC, Wilmington Trust, National Association, as trustee, and Deutsche Bank Trust Company Americas, as paying agent, transfer agent, registrar and authenticating agent (2028 Senior Notes).
First Supplemental Indenture dated February 3, 2020, among PBF Holding Company LLC, PBF Finance Corporation, Martinez Refining Company LLC, Martinez Terminal Company LLC, Wilmington Trust, National Association, as trustee, and Deutsche Bank Trust Company Americas, as paying agent, transfer agent, registrar and authenticating agent (2025 Senior Notes).
Eighth Supplemental Indenture dated March 4, 2020, among PBFX Ace Holdings LLC, PBF Logistics LP, PBF Logistics Finance Corporation, and Deutsche Bank Trust Company Americas, as trustee (incorporated by reference to Exhibit 4.1 filed with PBF Logistics LP’s Quarterly Report on Form 10-Q dated May 15, 2020 (File No. 001-36446)).
Joinder Agreement to the ABL Security Agreement dated as of February 1, 2020, among Martinez Refining Company LLC, Martinez Terminal Company LLC and Bank of America, N.A., as Administrative Agent.
Joinder Agreement to the Credit Agreement dated as of February 1, 2020, among PBF Holding Company LLC, the Guarantors named on the signature pages thereto including Martinez Refining Company LLC, Martinez Terminal Company LLC and Bank of America, N.A., as Administrative Agent to Senior Secured Revolving Credit Agreement dated as of May 2, 2018.
Amendment dated as of February 18, 2020 to Senior Secured Revolving Credit Agreement dated as of May 2, 2018
Consent to Temporary Reduction of Biweekly Installments of Base Salary for Thomas Nimbley.
Consent to Temporary Reduction of Biweekly Installments of Base Salary for Charles Erik Young.
Consent to Temporary Reduction of Biweekly Installments of Base Salary for Timothy Paul Davis.
Consent to Temporary Reduction of Biweekly Installments of Base Salary for Thomas O’Connor.
Consent to Temporary Reduction of Biweekly Installments of Base Salary for Matthew Lucey.
Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Energy Inc. 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 Energy Inc. pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Energy Company LLC pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
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31.2*Certification of Erik Young, Chief Financial Officer of PBF Energy 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*
32.1* (1)
Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Energy Inc. 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 Energy Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.3* (1)
Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Energy 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*
32.4* (1)
Certification of Erik Young, Chief Financial Officer of PBF Energy Company LLC pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INSInline XBRL Instance Document.
101.SCHInline XBRL Taxonomy Extension Schema Document.
101.CALInline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.
101.LABInline XBRL Taxonomy Extension Label Linkbase Document.
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
 ——————————
*Filed herewith.
**†Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally a copy of the omitted schedules to the SEC upon request.Indicates management compensatory plan or arrangement.
(1)This exhibit should not be deemed to be "filed"“filed” for purposes of Section 18 of the Exchange Act.
(2)Indicates management compensatory plan or arrangement.


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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, theeach registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
PBF Energy Inc.
Date:May 15, 2020PBF Energy Company LLC
By:
DateDecember 8, 2015By:/s/ Erik Young
Erik Young

Senior Vice President, Chief Financial Officer

(Duly Authorized Officer and Principal Financial Officer)

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EXHIBIT INDEX

PBF Energy Company LLC
Exhibit
Number
Description
Date:May 15, 2020
2.1**By:Sale and Purchase Agreement by and between PBF Holding Company LLC and ExxonMobil Oil Corporation and its subsidiary, Mobil Pacific Pipeline Company as of September 29, 2015.(Incorporated by reference to Exhibit 2.1 filed with PBF Energy Inc.’s Current Report on Form 8-K dated October 1, 2015 (File No. 001-35764))
10.1(2)Third Amended and Restated Employment Agreement between PBF Investments LLC and Thomas D. O'Malley, Executive Chairman of the Board of Directors of PBF Energy Inc. as of September 8, 2015. (Incorporated by reference to Exhibit 10.1 filed with PBF Energy Inc.’s Current Report on Form 8-K dated September 11, 2015 (File No. 001-35764))
31.1*Certification of Thomas J. Nimbley, Chief Executive Officer of PBF LLC pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*Certification ofs/ Erik Young Chief Financial Officer of PBF 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 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 LLC pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INSXBRL Instance Document.
101.SCHXBRL Taxonomy Extension Schema Document.
101.CALXBRL Taxonomy Extension Calculation Linkbase Document.
101.DEFXBRL Taxonomy Extension Definition Linkbase Document.
101.LABXBRL Taxonomy Extension Label Linkbase Document.
101.PREXBRL Taxonomy Extension Presentation Linkbase Document.
 ——————————
*Filed herewith.Erik Young
Senior Vice President, Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
**Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally a copy of the omitted schedules to the SEC upon request.
(1)This exhibit should not be deemed to be "filed" for purposes of Section 18 of the Exchange Act.
(2)Indicates management compensatory plan or arrangement.



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