PBF Energy 2013 Annual Report Download - page 132

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PBF ENERGY INC. AND
PBF HOLDING COMPANY LLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT SHARE, UNIT, PER SHARE, PER UNIT AND BARREL DATA)
F- 36
12. RELATED PARTY TRANSACTIONS
The Company engaged Fuel Strategies International, Inc, the principal of which is the brother of the Executive
Chairman of the Board of Directors of the Company, to provide consulting services relating to petroleum coke and
commercial operations. For the years ended December 31, 2013, 2012 and 2011, the Company incurred charges
of $646, $903 and $462, respectively, under this agreement.
The Company has an agreement with the Executive Chairman of the Board of Directors, for the use of an airplane
that is owned by a company owned by the Executive Chairman. The Company pays a charter rate that is the lowest
rate this aircraft is chartered to third-parties. For the years ended December 31, 2013, 2012 and 2011, the Company
incurred charges of $1,274, $1,030, and $821, respectively, related to use of this airplane.
As of December 31, 2013, each of Blackstone and First Reserve, the Company’s financial sponsors, had received
the full return of its aggregate amount invested in PBF LLC Series A Units. As a result, pursuant to the amended
and restated limited liability company agreement of PBF LLC, the holders of PBF LLC Series B Units are entitled
to an interest in the amounts received by Blackstone and First Reserve in excess of their original investment in the
form of PBF LLC distributions and from the shares of PBF Energy Class A Common Stock issuable to Blackstone
and First Reserve (for their own account and on behalf of the holders of PBF LLC Series B Units) upon an exchange,
and the proceeds from the sale of such shares. Such proceeds received by Blackstone and First Reserve are distributed
to the holders of the PBF LLC Series B Units in accordance with the distribution percentages specified in the PBF
LLC amended and restated limited liability company agreement. The total amount distributed to the PBF LLC
Series B Unit holders for the year ended December 31, 2013 was $6,427. There were no amounts distributed to
PBF LLC Series B Unit holders prior to 2013.
13. COMMITMENTS AND CONTINGENCIES
Lease and Other Commitments
The Company leases office space, office equipment, refinery facilities and equipment, and railcars under non-
cancelable operating leases, with terms ranging from one to twenty years, subject to certain renewal options as
applicable. Total rent expense was $70,581, $41,563, and $29,233 for the years ended December 31, 2013, 2012
and 2011, respectively. The Company is party to agreements which provide for the treatment of wastewater and
the supply of hydrogen and steam for the Paulsboro and Toledo refineries. The Company made purchases of
$38,383, $30,335 and $30,773 under these supply agreements for the years ended December 31, 2013, 2012 and
2011, respectively.
The fixed and determinable amounts of the obligations under these agreements and total minimum future annual
rentals, exclusive of related costs, are approximately:
Year Ending
December 31,
2014 $ 81,358
2015 73,481
2016 72,424
2017 62,918
2018 56,483
Thereafter 93,937
$ 440,601