PBF Energy 2012 Annual Report Download - page 159

PAULSBORO REFINING BUSINESS
NOTES TO FINANCIAL STATEMENTS—(Continued)
10 - SUPPLEMENTAL CASH FLOW INFORMATION
In order to determine net cash provided by (used in) operating activities, net income (loss) was adjusted by,
among other things, changes in current assets and current liabilities as follows (in thousands):
Period from
January 1
through
December 16,
2010
Decrease (increase) in current assets:
Restricted cash ............................................................... $(12,122)
Accounts receivable ........................................................... (110)
Inventories .................................................................. 21,230
Prepaid expenses .............................................................. 412
Increase (decrease) in current liabilities:
Accounts payable ............................................................. (11,885)
Accrued expenses ............................................................. (6,140)
Taxes other than income taxes ................................................... (48)
Income taxes payable .......................................................... —
Changes in current assets and current liabilities .......................................... $ (8,663)
The above changes in current assets and current liabilities differ from changes between amounts reflected in the
applicable balance sheets for the respective periods for the following reasons:
• the amounts shown above exclude changes in cash, deferred income taxes, and current portion of
capital lease obligation, and
• amounts accrued for capital expenditures and deferred turnaround and catalyst costs were reflected in
investing activities when such amounts were paid.
Cash flows related to income taxes and interest were as follows (in thousands):
Period from
January 1
through
December 16,
2010
Income taxes paid, net of tax refunds received .......................................... $(39,492)
Interest paid (net of amount capitalized) ............................................... 7
11 - RELATED-PARTY TRANSACTIONS
Related-party transactions of the Business included the purchase of feedstocks by the Business from Valero,
operating revenues received by the Business from its sales of refined products to Valero, and the allocation of
insurance and security costs and certain general and administrative costs from Valero to the Business. Purchases
of feedstock by the Business from Valero were recorded at the cost paid to third parties by Valero. Sales of
refined products from the Business to Valero were recorded at intercompany transfer prices, which were market
prices adjusted by quality, location, and other differentials on the date of the sale. General and administrative
costs were charged by Valero to the Business based on management’s determination of such costs attributable to
the operations of the Business. However, such related-party transactions cannot be presumed to be carried out on
an arm’s length basis as the requisite conditions of competitive, free-market dealings may not exist. For purposes
of these financial statements, payables and receivables related to transactions between the Business and Valero
were included as a component of the net parent investment.
F-67