PBF Energy 2013 Annual Report Download - page 137

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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- 41
PBF Holding Capital Structure
At December 31, 2013 and 2012, PBF LLC was the sole member of PBF Holding.
15. STOCK-BASED COMPENSATION
Stock-based compensation expense included in general and administrative expenses consisted of the following:
Years Ended December 31,
2013 2012 2011
PBF LLC Series A Unit compensatory warrants and options $ 779 $ 1,589 $ 1,135
PBF LLC Series B Units 530 1,277 1,381
PBF Energy options 2,444 88 —
$ 3,753 $ 2,954 $ 2,516
PBF LLC Series A warrants and options
PBF LLC granted compensatory warrants to employees of the Company in connection with their purchase of Series
A units in PBF LLC. The warrants grant the holder the right to purchase PBF LLC Series A Units. One-quarter of
the PBF LLC Series A compensatory warrants were exercisable at the date of grant and the remaining three-quarters
become exercisable over equal annual installments on each of the first three anniversaries of the grant date subject
to acceleration in certain circumstances. A total of 551,759 PBF LLC Series A compensatory warrants were granted
during the year ended December 31, 2011. They are exercisable for ten years from the date of grant. The remaining
warrants became fully exercisable in connection with the IPO of PBF Energy.
A total of 205,000 and 620,000 options to purchase PBF LLC Series A units were granted to certain employees,
management and directors in 2012 and 2011, respectively. Options vest over equal annual installments on each of
the first three anniversaries of the grant date subject to acceleration in certain circumstances. The options are
exercisable for ten years from the date of grant.
The Company did not issue PBF LLC Series A Units compensatory warrants or options in 2013.
The estimated fair value of compensatory PBF LLC Series A warrants and options granted during the years ended
December 31, 2012 and 2011 was determined using the Black-Scholes pricing model with the following weighted
average assumptions:
Years Ended December 31,
2012 2011
Expected life (in years) 6.00 5.75
Expected volatility 55.00% 40.00%
Dividend yield 1.00% 1.06%
Risk-free rate of return 0.91% 2.43%
Exercise price $ 12.55 $ 10.00