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INCOME TAXES | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES PBF Energy is required to file federal and applicable state corporate income tax returns and recognizes income taxes on its pre-tax income (loss), which to-date has consisted primarily of its share of PBF LLC’s pre-tax income (see “Note 16 - Stockholders’ and Members’ Equity Structure”). PBF LLC is organized as a limited liability company and PBFX is an MLP, both of which are treated as “flow-through” entities for federal income tax purposes and therefore are not subject to income taxes apart from the income tax attributable to the two subsidiaries acquired in connection with the acquisition of Chalmette Refining and PBF Holding’s wholly-owned Canadian subsidiary, PBF Energy Limited, that are treated as C-Corporations for income tax purposes, with the tax provision calculated based on the effective tax rate for the period presented. Valuation Allowance Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of existing deferred tax assets. Negative evidence evaluated as part of this assessment includes PBF Energy’s cumulative losses incurred over a three-year period. Such objective evidence could limit PBF Energy’s ability to consider other subjective evidence, such as PBF Energy’s projections for future taxable income as market conditions, commodity prices and demand for refined products normalize. On the basis of this evaluation, a valuation allowance was recorded to recognize only the portion of deferred tax assets that are more likely than not to be realized. The amount of the deferred tax assets considered realizable, however, could be adjusted if estimates of future taxable income during the carryover period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as PBF Energy’s projections for future taxable income. The income tax provision in the PBF Energy Consolidated Statements of Operations consists of the following:
(in millions) | Year Ended December 31, 2021 |  | Year Ended December 31, 2020 |  | Year Ended December 31, 2019
Current expense (benefit): |  |  |  |  |
Federal | $ | 0.3 |  |  | $ | (1.7) |  |  | $ | 0.2 |
Foreign | — |  |  | — |  |  | 0.1 |
State | 0.1 |  |  | 2.2 |  |  | 0.3 |
Total current | 0.4 |  |  | 0.5 |  |  | 0.6 |
Deferred expense (benefit): |  |  |  |  |
Federal | 19.1 |  |  | (6.6) |  |  | 91.8 |
Foreign | (13.1) |  |  | 5.4 |  |  | (8.7) |
State | 5.7 |  |  | 2.8 |  |  | 20.6 |
Total deferred | 11.7 |  |  | 1.6 |  |  | 103.7 |
Total provision for income taxes | $ | 12.1 |  |  | $ | 2.1 |  |  | $ | 104.3 |
The difference between PBF Energy’s effective income tax rate and the United States statutory rate is reconciled below:
| Year Ended December 31, 2021 |  | Year Ended December 31, 2020 |  | Year Ended December 31, 2019
Provision at Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Increase (decrease) attributable to flow-through of certain tax adjustments: |  |  |  |  |
State income taxes (net of federal income tax) | 4.9 | % |  | 5.6 | % |  | 3.9 | %
Nondeductible/nontaxable items | 0.9 | % |  | (0.1) | % |  | 0.1 | %
Rate differential from foreign jurisdictions | (0.4) | % |  | — | % |  | (0.2) | %
Provision to return adjustment | (0.1) | % |  | (0.1) | % |  | (0.1) | %
Adjustment to deferred tax assets and liabilities for change in tax rates | 2.2 | % |  | 0.1 | % |  | (0.5) | %
Stock-based compensation | — | % |  | — | % |  | 0.1 | %
Deferred tax asset valuation allowance | (23.2) | % |  | (25.8) | % |  | — | %
Other | (0.3) | % |  | (0.9) | % |  | 0.3 | %
Effective tax rate | 5.0 | % |  | (0.2) | % |  | 24.6 | %
PBF Energy’s effective income tax rate for the years ended December 31, 2021, 2020 and 2019, including the impact of income attributable to noncontrolling interests of $84.5 million, $59.1 million and $55.8 million, respectively, was 3.7%, (0.2)% and 21.8%, respectively. For the year ended December 31, 2021 and 2020 the difference between the United States statutory rate and PBF Energy’s effective tax rate was primarily attributable to the changes in the deferred tax asset valuation allowance noted above. For the year ended December 31, 2019, PBF Energy’s effective tax rate was materially consistent with its statutory federal and state tax rates. For financial reporting purposes, income (loss) before income taxes attributable to PBF Energy Inc. stockholders includes the following components:
(in millions) | Year Ended December 31, 2021 |  | Year Ended December 31, 2020 |  | Year Ended December 31, 2019
United States income (loss) | $ | 296.4 |  |  | $ | (1,413.0) |  |  | $ | 450.0 |
Foreign income (loss) | (53.3) |  |  | 22.7 |  |  | (26.3) |
Total income (loss) before income taxes attributable to PBF Energy Inc. stockholders | $ | 243.1 |  |  | $ | (1,390.3) |  |  | $ | 423.7 |
A summary of the components of PBF Energy’s deferred tax assets and deferred tax liabilities consists of the following:
(in millions) | December 31, 2021 |  | December 31, 2020
Deferred tax assets |  |  |
Purchase interest step-up | $ | 141.2 |  |  | $ | 155.2 |
Inventory | — |  |  | 146.5 |
Pension, employee benefits and compensation | 63.7 |  |  | 48.5 |
Hedging | 4.9 |  |  | 4.3 |
Net operating loss carry forwards | 600.0 |  |  | 566.9 |
Environmental liabilities | 99.7 |  |  | 100.8 |
Lease liabilities | 308.7 |  |  | 223.4 |
Interest expense limitation carry forwards | 104.4 |  |  | 55.8 |
Other | 36.2 |  |  | 28.4 |
Total deferred tax assets | 1,358.8 |  |  | 1,329.8 |
Valuation allowance | (308.5) |  |  | (358.4) |
Total deferred tax assets, net | 1,050.3 |  |  | 971.4 |
Deferred tax liabilities |  |  |
Property, plant and equipment | 825.0 |  |  | 845.1 |
Inventory | 23.1 |  |  | — |
Right of use assets | 308.7 |  |  | 223.4 |
Other | 4.9 |  |  | 2.5 |
Total deferred tax liabilities | 1,161.7 |  |  | 1,071.0 |
Net deferred tax liabilities | $ | (111.4) |  |  | $ | (99.6) |
As of December 31, 2021, PBF Energy has federal and state income tax net operating loss carry forwards of $2,377.0 million and $127.0 million, respectively. The portion of the federal net operating loss carry forward that was generated in years prior to 2019 expires in varying amounts through 2037. A federal net operating loss of $1.8 billion from 2018 and 2021 has an indefinite carry forward period and can be used to offset 80% of taxable income in future years. The state net operating loss carry forwards expire at various dates from 2029 through 2041 with certain jurisdictions having indefinite net operating loss carry forwards periods. The Company has recorded valuation allowances against these assets, as it is deemed “more likely than not” that the deferred tax assets will not be realized. The reported income tax (benefit) expense in the PBF LLC Consolidated Statements of Operations consists of the following:
(in millions) | Year Ended December 31, 2021 |  | Year Ended December 31, 2020 |  | Year Ended December 31, 2019
Current income tax expense (benefit) | $ | 0.5 |  |  | $ | (1.2) |  |  | $ | 0.5 |
Deferred income tax (benefit) expense | (14.5) |  |  | 7.3 |  |  | (8.8) |
Total income tax (benefit) expense | $ | (14.0) |  |  | $ | 6.1 |  |  | $ | (8.3) |
Income tax years that remain subject to examination by material jurisdictions, where an examination has not already concluded are all years including and subsequent to:
United States |
Federal | 2018
New Jersey | 2016
Michigan | 2017
Delaware | 2018
Indiana | 2018
Pennsylvania | 2018
New York | 2018
Louisiana | 2018
California | 2017
The Company does not have any unrecognized tax benefits.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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