PBF Energy 2012 Annual Report Download - page 68

members, per the terms of the PBF LLC limited liability agreement, related to such taxes. Effective with the
completion of the initial public offering of PBF Energy, we recognize an income tax expense or benefit in our
consolidated financial statements based on our allocable share of PBF LLC’s pre-tax income (loss), which was
approximately 24.4% for the period from December 18, 2012 to December 31, 2012. We do not recognize any
income tax expense or benefit related to the noncontrolling interest in PBF LLC.
Noncontrolling Interest—As a result of our initial public offering and the related reorganization transactions,
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 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 noncontrolling PBF LLC Series A
Unit holders. Noncontrolling interest on the consolidated statement of operations represents the portion of
earnings or loss attributable to the economic interest in PBF LLC held by the pre-IPO owners of PBF LLC,
which was approximately 75.6% for the period from the completion of our initial public offering, or
December 18, 2012, to December 31, 2012 and all earnings prior to the IPO. Noncontrolling interest on the
balance sheet represents the portion of net assets of PBF Energy attributable to the pre-IPO owners of PBF LLC,
based on the number of PBF LLC Series A units held by such holders. The noncontrolling interest ownership
percentage as of December 18, 2012 and December 31, 2012 was approximately 75.6%. The carrying amount of
the noncontrolling interest on our consolidated balance sheet attributable to the noncontrolling interest is not
equal to 75.6% due to the effect of income taxes and related agreements that pertain solely to PBF Energy.
2011 Compared to 2010
Overview—Net income was $242.7 million for the year ended December 31, 2011 compared to a net loss of
$44.4 million for the year ended December 31, 2010. During most of 2010, we were a development stage
company focused on the acquisition of oil refineries and other downstream assets in North America and activities
to turnaround, reconfigure and re-start our Delaware City refinery. Our net loss in 2010 was related to those
activities, plus the results of operations of our Paulsboro refinery for the period from December 17, 2010 to
December 31, 2010. Our 2011 net income primarily reflects a full year’s operation of our Paulsboro refinery, the
results of our Toledo refinery, which we acquired on March 1, 2011, and the results of our Delaware City
refinery, which we began re-starting in June 2011 and which was fully operational in October 2011.
Revenues—Revenues totaled $15.0 billion for the year ended December 31, 2011 compared to
$210.7 million in the year ended December 31, 2010. The revenue increase was primarily due to the operations
of our Paulsboro and Toledo refineries, and the commencement of refining operations at our Delaware City
refinery, which became operational in October 2011. The total throughput rate and barrels sold rate at our
Paulsboro refinery averaged 151,400 bpd and 151,700 bpd, respectively, during the year ended December 31,
2011. The total throughput rate and barrels sold rate at our Toledo refinery averaged 151,400 bpd and
160,800 bpd, respectively, during the period from March 1, 2011 to December 31, 2011. We began re-starting
our Delaware City refinery during June 2011 and it became operational in October 2011. Its throughput rate and
barrels sold rate averaged approximately 126,600 bpd and 116,200 bpd, respectively, for the period from June
2011 through December 31, 2011. Our 2010 revenues were primarily related to consulting services that we
provided to third parties, minor terminaling operations at our Delaware City refinery beginning June 1, 2010, and
revenue from our Paulsboro refinery from December 17, 2010 to December 31, 2010. During this period, the
refinery had an average throughput rate of approximately 143,800 bpd.
Gross Margin—Non-GAAP gross margin totaled $1,105.2 million, or $8.59 per barrel of throughput, for the
year ended December 31, 2011 compared to $6.7 million, or $3.05 per barrel of throughput for the year ended
December 31, 2010, an increase of $1,098.5 million. Gross margin totaled $418.0 million, or $3.25 per barrel of
throughput, for the year ended December 31, 2011 compared to a loss of $4.9 million, or $2.27 per barrel of
throughput, for the year ended December 31, 2010, an increase of $422.9 million. The increase in non-GAAP
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