PBF Energy 2013 Annual Report Download - page 73

66
The following table reconciles our Adjusted Pro Forma results with our results presented in accordance with
U.S. GAAP for the years ended December 31, 2013, 2012 and 2011:
Year Ended
December 31,
2013 2012 2011
Net income attributable to PBF Energy Inc. $ 39,540 $ 1,956 $ —
Add: IPO-related expenses(1) — 8,187 —
Add: Net income attributable to the
noncontrolling interest(2) 174,545 802,081 242,671
Less: Income tax expense(3) (70,167)(319,732)(95,758)
Adjusted pro forma net income $ 143,918 $ 492,492 $ 146,913
Diluted weighted-average shares outstanding of
PBF Energy Inc. (4) 33,061,081 97,230,904
Conversion of PBF LLC Series A Units (5) 64,164,045 — 97,230,904
Pro forma shares outstanding—diluted(6) 97,225,126 97,230,904 97,230,904
Adjusted pro forma net income (loss) per fully
exchanged, fully diluted shares outstanding $ 1.48 $ 5.07 $ 1.51
(1) Represents the elimination of one-time charges associated with our initial public offering.
(2) Represents the elimination of the noncontrolling interest associated with the ownership by the members
of PBF LLC other than PBF Energy as if such members had fully exchanged their PBF LLC Series A Units
for shares of PBF Energy's Class A common stock.
(3) Represents an adjustment to apply PBF Energy's statutory tax rate of approximately 40.2% for the year
ended December 31, 2013 and 39.5% for the years ended December 31, 2012 and 2011 to the noncontrolling
interest. The adjustment assumes the full exchange of existing PBF LLC Series A Units as described in
(2) above.
(4) Represents weighted-average diluted shares outstanding assuming the conversion of all common stock
equivalents, including options and warrants for units of PBF LLC Series A Units and options for shares of
PBF Energy Class A common stock as calculated under the treasury stock method for the year ended
December 31, 2013. Common stock equivalents exclude the effects of options to purchase 1,320,000 and
682,500 shares of PBF Energy's Class A common stock because they are anti-dilutive for the years ended
December 31, 2013 and 2012, respectively.
(5) Represents an adjustment to weighted-average diluted shares to assume the full exchange of existing PBF
LLC Series A Units as described in (2) above.
(6) Diluted pro forma shares outstanding for 2011 reflect the same number of diluted shares outstanding for
2012 in order to present such pre-IPO period on a comparable basis.
Gross Refining Margin
Gross refining margin is defined as gross margin excluding depreciation and operating expense related to
the refineries. We believe gross refining margin is an important measure of operating performance and provides
useful information to investors because it is a better metric comparison for the industry refining margin benchmarks,
as the refining margin benchmarks do not include a charge for depreciation expense. In order to assess our operating
performance, we compare our gross refining margin (revenue less cost of sales) to industry refining margin
benchmarks and crude oil prices as defined in the table below.
Gross refining margin should not be considered an alternative to gross margin, operating income, net cash
flows from operating activities or any other measure of financial performance or liquidity presented in accordance
with GAAP. Gross refining margin presented by other companies may not be comparable to our presentation,