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FAIR VALUE MEASUREMENTS | 3 Months Ended
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Mar. 31, 2016
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The tables below present information about the Company's financial assets and liabilities measured and recorded at fair value on a recurring basis and indicate the fair value hierarchy of the inputs utilized to determine the fair values as of March 31, 2016 and December 31, 2015. We have elected to offset the fair value amounts recognized for multiple derivative contracts executed with the same counterparty; however, fair value amounts by hierarchy level are presented on a gross basis in the tables below. We have posted cash margin with various counterparties to support hedging and trading activities. The cash margin posted is required by counterparties as collateral deposits and cannot be offset against the fair value of open contracts except in the event of default. We have no derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.
| As of March 31, 2016
| Fair Value Hierarchy |  | Total Gross Fair Value |  | Effect of Counter-party Netting |  | Net Carrying Value on Balance Sheet
| Level 1 |  | Level 2 |  | Level 3 |  |
Assets: |  |  |  |  |  |  |  |  |  |  |
Money market funds | $ | 507,498 |  |  | $ | — |  |  | $ | — |  |  | $ | 507,498 |  |  | N/A |  |  | $ | 507,498 |
Marketable securities | 234,408 |  |  | — |  |  | — |  |  | 234,408 |  |  | N/A |  |  | 234,408 |
Commodity contracts | 29,761 |  |  | 21,346 |  |  | 1,915 |  |  | 53,022 |  |  | (38,338 | ) |  | 14,684 |
Derivatives included with inventory intermediation agreement obligations | — |  |  | 365 |  |  | — |  |  | 365 |  |  | — |  |  | 365 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Commodity contracts | 34,368 |  |  | 3,970 |  |  | — |  |  | 38,338 |  |  | (38,338 | ) |  | — |
Catalyst lease obligations | — |  |  | 34,688 |  |  | — |  |  | 34,688 |  |  | — |  |  | 34,688 |
| As of December 31, 2015
| Fair Value Hierarchy |  | Total Gross Fair Value |  | Effect of Counter-party Netting |  | Net Carrying Value on Balance Sheet
| Level 1 |  | Level 2 |  | Level 3 |
Assets: |  |  |  |  |  |  |  |  |  |  |
Money market funds | $ | 631,280 |  |  | $ | — |  |  | $ | — |  |  | $ | 631,280 |  |  | N/A |  |  | $ | 631,280 |
Marketable securities | 234,258 |  |  | — |  |  | — |  |  | 234,258 |  |  | N/A |  |  | 234,258 |
Commodity contracts | 63,810 |  |  | 31,256 |  |  | 3,543 |  |  | 98,609 |  |  | (52,482 | ) |  | 46,127 |
Derivatives included with inventory intermediation agreement obligations | — |  |  | 35,511 |  |  | — |  |  | 35,511 |  |  | — |  |  | 35,511 |
Derivatives included with inventory supply arrangement obligations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Commodity contracts | 49,960 |  |  | 2,522 |  |  | — |  |  | 52,482 |  |  | (52,482 | ) |  | — |
Catalyst lease obligations | — |  |  | 31,802 |  |  | — |  |  | 31,802 |  |  | — |  |  | 31,802 |
The valuation methods used to measure financial instruments at fair value are as follows:
• | Money market funds categorized in Level 1 of the fair value hierarchy are measured at fair value based on quoted market prices and included within cash and cash equivalents.
• | Marketable securities, consisting primarily of US Treasury securities, categorized in Level 1 of the fair value hierarchy are measured at fair value based on quoted market prices.
• | The commodity contracts categorized in Level 1 of the fair value hierarchy are measured at fair value based on quoted prices in an active market. The commodity contracts categorized in Level 2 of the fair value hierarchy are measured at fair value using a market approach based upon future commodity prices for similar instruments quoted in active markets.
• | The commodity contracts categorized in Level 3 of the fair value hierarchy consist of commodity price swap contracts that relate to forecasted purchases of crude oil for which quoted forward market prices are not readily available due to market illiquidity. The forward prices used to value these swaps were derived using broker quotes, prices from other third party sources and other available market based data.
• | The derivatives included with inventory supply arrangement obligations, derivatives included with inventory intermediation agreement obligations and the catalyst lease obligations are categorized in Level 2 of the fair value hierarchy and are measured at fair value using a market approach based upon commodity prices for similar instruments quoted in active markets.
Non-qualified pension plan assets are measured at fair value using a market approach based on published net asset values of mutual funds as a practical expedient. As of March 31, 2016 and December 31, 2015, $9,645 and $9,325, respectively, were included within deferred charges and other assets, net for these non-qualified pension plan assets. The table below summarizes the changes in fair value measurements categorized in Level 3 of the fair value hierarchy:
|  | Three Months Ended March 31,
|  | 2016 |  | 2015
Balance at beginning of period |  | $ | 3,543 |  |  | $ | 1,521 |
Purchases |  | — |  |  | — |
Settlements |  | (256 | ) |  | (1,200 | )
Unrealized gain included in earnings |  | (1,372 | ) |  | 9,357 |
Transfers into Level 3 |  | — |  |  | — |
Transfers out of Level 3 |  | — |  |  | — |
Balance at end of period |  | $ | 1,915 |  |  | $ | 9,678 |
There were no transfers between levels during the three months ended March 31, 2016 and 2015, respectively. Fair value of debt The table below summarizes the fair value and carrying value of debt as of March 31, 2016 and December 31, 2015.
| March 31, 2016 |  | December 31, 2015
| Carrying value |  | Fair value |  | Carrying value |  | Fair value
Senior Secured Notes due 2020 (a) | $ | 669,940 |  |  | $ | 702,571 |  |  | $ | 669,644 |  |  | $ | 706,246 |
Senior Secured Notes due 2023 (a) | 500,000 |  |  | 474,138 |  |  | 500,000 |  |  | 492,452 |
PBFX Senior Notes (a) | 350,000 |  |  | 339,216 |  |  | 350,000 |  |  | 321,722 |
PBFX Term Loan (b) | 234,200 |  |  | 234,200 |  |  | 234,200 |  |  | 234,200 |
Rail Facility (b) | 67,491 |  |  | 67,491 |  |  | 67,491 |  |  | 67,491 |
Catalyst leases (c) | 34,688 |  |  | 34,688 |  |  | 31,802 |  |  | 31,802 |
PBFX Revolving Credit Facility (b) | 24,500 |  |  | 24,500 |  |  | 24,500 |  |  | 24,500 |
Revolving Loan (b) | — |  |  | — |  |  | — |  |  | — |
| 1,880,819 |  |  | 1,876,804 |  |  | 1,877,637 |  |  | 1,878,413 |
Less - Current maturities | — |  |  | — |  |  | — |  |  | — |
Less - Unamortized deferred financing costs | 38,917 |  |  | n/a |  |  | 41,282 |  |  | n/a |
Long-term debt | $ | 1,841,902 |  |  | $ | 1,876,804 |  |  | $ | 1,836,355 |  |  | $ | 1,878,413 |
(a) The estimated fair value, categorized as a Level 2 measurement, was calculated based on the present value of future expected payments utilizing implied current market interest rates based on quoted prices of the Senior Secured Notes and the PBFX Senior Notes. (b) The estimated fair value approximates carrying value, categorized as a Level 2 measurement, as these borrowings bear interest based upon short-term floating market interest rates. (c) Catalyst leases are valued using a market approach based upon commodity prices for similar instruments quoted in active markets and are categorized as a Level 2 measurement. The Company has elected the fair value option for accounting for its catalyst lease repurchase obligations as the Company's liability is directly impacted by the change in fair value of the underlying catalyst.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
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