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FAIR VALUE MEASUREMENTS
 3 Months Ended
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.