PBF Energy 2013 Annual Report Download - page 153

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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- 57
The following tables provide information about the gain or loss recognized in income on these derivative instruments
and the line items in the consolidated financial statements in which such gains and losses are reflected.
Description
Location of Gain
or (Loss)
Recognized in
Income on
Derivatives
Gain or (Loss)
Recognized in
Income on
Derivatives
Derivatives designated as hedging instruments:
For the year ended December 31, 2013:
Derivatives included with inventory supply arrangement obligations Cost of sales $ (5,773)
Derivatives included with the inventory intermediation agreement
obligations Cost of sales $ 6,016
For the year ended December 31, 2012:
Derivatives included with inventory supply arrangement obligations Cost of sales $ 7,060
For the year ended December 31, 2011
Derivatives included with inventory supply arrangement obligations Cost of sales $ (6,076)
Derivatives not designated as hedging instruments:
For the year ended December 31, 2013:
Derivatives included with inventory supply arrangement obligations Cost of sales $ —
Commodity contracts Cost of sales $ (88,962)
For the year ended December 31, 2012:
Derivatives included with inventory supply arrangement obligations Cost of sales $ (8)
Commodity contracts Cost of sales $ 34,778
For the year ended December 31, 2011
Derivatives included with inventory supply arrangement obligations Cost of sales $ 2,829
Commodity contracts Cost of sales $ 5,604
Hedged items designated in fair value hedges:
For the year ended December 31, 2013:
Crude oil and feedstock inventory Cost of sales $ (1,491)
Intermediate and refined product inventory Cost of sales $ (6,016)
For the year ended December 31, 2012:
Crude oil and feedstock inventory Cost of sales $ (4,704)
For the year ended December 31, 2011
Crude oil and feedstock inventory Cost of sales $ 6,558
Ineffectiveness related to the Company's fair value hedges resulted in a loss of $7,264 and gains of $2,356 and
$482 for the years ended December 31, 2013, 2012 and 2011, respectively, recorded in cost of sales. Gains and
losses due to ineffectiveness, resulting from the difference in the forward and spot rates of the underlying crude
inventory related to the derivatives included with inventory supply arrangement obligations, were excluded from
the assessment of hedge effectiveness.