PBF Energy 2013 Annual Report Download - page 69

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PBF Energy's allocable share of PBF LLC’s pre-tax income (loss), which was approximately 24.4% prior to the
June 2013 Secondary Offering and 40.9% subsequent to the June 2013 Secondary Offering. We do not recognize
any income tax expense or benefit related to the noncontrolling interest of the other members in PBF LLC (although,
as described elsewhere, we make tax distributions to all members of PBF LLC under the terms of its amended and
restated limited liability company agreement). PBF Energy's effective tax rate for the year ended December 31,
2013 was 29.7% reflecting tax benefit adjustments for discrete items related to changes in income tax provision
estimates based on our income tax returns and changes in our effective state tax rates.
PBF Holding, as a limited liability company treated as a "flow-through" entity for income tax purposes, did
not recognize a benefit or provision for income tax expense for the years ended December 31, 2013 and 2012.
Noncontrolling Interest— As a result of our initial public offering and the related reorganization transactions,
PBF Energy became 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 LLC held by members other than PBF Energy.
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 members other than PBF Energy. Noncontrolling interest
on the balance sheet represents the portion of net assets of PBF Energy attributable to the members of PBF LLC
other than PBF Energy, based on the relative equity interest held by such members. The noncontrolling interest
ownership percentage as of December 31, 2013 and December 31, 2012 was approximately 59.1% and 75.6%,
respectively. The carrying amount of the noncontrolling interest on our consolidated balance sheet attributable to
the noncontrolling interest is not equal to the noncontrolling interest ownership percentage due to the effect of
income taxes and related agreements that pertain solely to PBF Energy.
2012 Compared to 2011
Overview—Net income was $804.0 million for the year ended December 31, 2012 compared to $242.7 for
the year ended December 31, 2011. Net income attributable to PBF Energy shareholders was $2.0 million, or $0.08
per share, for the year ended December 31, 2012. The net income attributable to PBF Energy shareholders represents
PBF Energy’s approximately 24.4% equity interest in PBF LLC’s pre-tax income, less applicable income taxes,
for the period from December 18, 2012, the date of the closing of its initial public offering, through December 31,
2012. During the 2011 period, our results reflect twelve months of operations of our Paulsboro refinery, ten months
of operations of our Toledo refinery, which was acquired on March 1, 2011, and three months of operations of our
Delaware City refinery as it was fully operational in October 2011. Prior to October 2011, we performed activities
to turnaround, reconfigure and re-start our Delaware City Refinery. We began restarting our Delaware City refinery
in June 2011 and it was fully operational in October 2011.
During the year ended December 31, 2012, all three of our refineries were operating, although the Toledo
refinery was impacted by a thirty day turnaround of its hydrocracker, reformer and UDEX units which commenced
on March 9, 2012. Our results for the year ended December 31, 2012 were favorably impacted by improved crack
spreads despite the narrowing of the light/heavy crude differential which impacted our Paulsboro and Delaware
City refineries.
Revenues—Revenues totaled $20.1 billion for the year ended December 31, 2012 compared to $15.0 billion
for the year ended December 31, 2011, an increase of $5.2 billion, or 34.6%. The revenue increase primarily relates
to year of operations of the Toledo refinery in 2012 compared to ten months in 2011 as a result of its acquisition
on March 1, 2011, and twelve months of operations of our Delaware City refinery in 2012, which was being
reconfigured and prepared for restart in 2011. For the year ended December 31, 2012, the total throughput rates
at our Paulsboro, Toledo, and Delaware City refineries averaged approximately 152,000 bpd, 147,200 bpd, and
164,000 bpd, respectively. For the year ended December 31, 2011, the total throughput rates at our Paulsboro,
Toledo and Delaware City refineries averaged approximately 151,400 bpd, 151,400 bpd, and 126,600 bpd,
respectively. For the year ended December 31, 2012, the total barrels sold at our Paulsboro, Toledo, and Delaware