PBF Energy 2013 Annual Report Download - page 72

65
noncontrolling interest for the economic interest in PBF Energy held by the noncontrolling PBF LLC Series A
Unit holders. 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 the members of PBF LLC other than PBF Energy,
which was approximately 75.6% for the period from the completion of our initial public offering, or December 18,
2012, to December 31, 2012 and all earnings prior to the IPO. Noncontrolling interest on the balance sheet represents
the portion of net assets of PBF Energy attributable to the the members of PBF LLC other than PBF Energy, based
on the number of PBF LLC Series A units held by such holders. The noncontrolling interest ownership percentage
as of December 18, 2012 and December 31, 2012 was approximately 75.6%. The carrying amount of the
noncontrolling interest on our consolidated balance sheet attributable to the noncontrolling interest is not equal to
75.6% due to the effect of income taxes and related agreements that pertain solely to PBF Energy.
Non-GAAP Financial Measures
Management uses certain financial measures to evaluate our operating performance that are calculated and
presented on the basis of methodologies other than in accordance with U.S. GAAP. These measures should not be
considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S.
GAAP, and our calculations thereof may not be comparable to similarly entitled measures reported by other
companies.
Adjusted Pro forma Net Income (Loss)
We utilize results presented on an Adjusted Pro Forma basis that exclude certain items relating to our initial
public offering and also reflects an assumed exchange of all PBF LLC Series A Units for shares of Class A common
stock of PBF Energy. We believe that these Adjusted Pro Forma measures, when presented in conjunction with
comparable U.S. GAAP measures, are useful to investors to compare our results across different periods and to
facilitate an understanding of our operating results. The differences between Adjusted Pro Forma and U.S. GAAP
results are as follows:
1Assumed Exchange of PBF LLC Series A Units for shares of PBF Energy Class A common stock. As a
result of the assumed exchange of PBF LLC Series A Units, the noncontrolling interest related to these
units is converted to controlling interest. Management believes that it is useful to provide the per-share
effect associated with the assumed exchange of all PBF LLC Series A Units.
2Income Taxes. Prior to the initial public offering, we were organized as a limited liability company
treated as a “flow-through” entity for income tax purposes, and even after our IPO, not all of our
earnings are subject to corporate-level income taxes. Adjustments have been made to the Adjusted Pro
Forma tax provisions and earnings to assume that we had adopted our post-IPO corporate tax structure
for all periods presented and are taxed as a C corporation in the U.S. at the prevailing corporate rates.
These assumptions are consistent with the assumption in clause 1 above that all PBF LLC Series A
Units are exchanged for shares of PBF Energy Class A common stock, as the assumed exchange would
change the amount of our earnings that is subject to corporate income tax.
3Elimination of Certain Initial Public Offering-Related Expenses. Adjusted Pro Forma results for 2012
also exclude one-time charges relating to our initial public offering. Management believes that this
adjustment results in a more meaningful comparison with prior and succeeding period results.