PBF Energy 2012 Annual Report Download - page 71

The following table reconciles our Adjusted Pro Forma results with our results presented in accordance with
U.S. GAAP for the years ended December 31, 2012, 2011 and 2010:
Year Ended
December 31,
2012 2011 2010
Net income (loss) attributable to PBF Energy Inc. $ 1,956 $ — $ —
Add: IPO-related expenses(1) 8,187 — —
Add: Net income (loss) attributable to the noncontrolling
interest(2) 802,081 242,671 (44,357)
Less: Income tax (expense) benefit(3) (319,732) (95,758) 17,503
Adjusted pro forma net income (loss) $ 492,492 $ 146,913 $ (26,854)
Pro forma shares outstanding—diluted(4) 97,230,904 97,230,904 97,230,904
Adjusted pro forma net income (loss) per fully exchanged, fully
diluted shares outstanding $ 5.07 $ 1.51 $ (0.28)
(1) Represents the elimination of one-time charges associated with our initial public offering.
(2) Represents the elimination of the noncontrolling interest associated with the ownership of existing
holders PBF LLC Series A Units, as if the holders had fully exchanged their Series A Units for shares
of our Class A common stock.
(3) Represents an adjustment to reflect the Company’s current effective corporate tax rate of
approximately 39.5% applied to all periods presented. The adjustment assumes the full exchange of
existing PBF LLC Series A Units as described in (2) above.
(4) Represents the weighted-average fully diluted shares outstanding assuming the exchange of all PBF
LLC Series A Units and common stock equivalents for shares of our Class A common stock.
Non-GAAP Gross Margin
Non-GAAP gross margin is defined as gross margin excluding depreciation expense related to the refineries.
We believe non-GAAP gross margin is an important measure of operating performance and provides useful
information to investors because it is a better metric comparison for the industry refining margin benchmarks, as
the refining margin benchmarks do not include a charge for depreciation expense. In order to assess our operating
performance, we compare our Non-GAAP gross margin (revenue less cost of sales) to industry refining margin
benchmarks and crude oil prices as defined in the table below.
Non-GAAP gross margin should not be considered an alternative to gross margin, operating income, net
cash flows from operating activities or any other measure of financial performance or liquidity presented in
accordance with GAAP. Non-GAAP gross margin presented by other companies may not be comparable to our
presentation, since each company may define this term differently. The following table presents a reconciliation
of Non-GAAP gross margin to the most directly comparable GAAP financial measure, gross margin, on a
historical basis, as applicable, for each of the periods indicated:
Year Ended December 31,
2012 2011 2010
(in thousands)
Reconciliation of gross margin to Non-GAAP gross margin:
Gross margin ................................................. $1,046,598 $ 417,962 ($ 4,895)
Add:
Refinery operating expense .................................. 738,824 635,517 11,052
Refinery depreciation expense ............................... 84,187 51,696 543
Non-GAAP gross margin ....................................... $1,869,609 $1,105,175 $ 6,700
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