Leases (Tables)

12 Months Ended

Dec. 31, 2020

Total lease cost by class of underlying asset

Total lease cost by class of underlying asset was as follows (in millions):


	Pipelines, Terminals, and Tanks		Transportation				Feedstock Processing Equipment		Energy and Gases		Real Estate		Other		Total
			Marine		Rail
Year ended December 31, 2020
Finance lease cost:
Amortization of ROU assets	$	109	$	—	$	2	$	13	$	4	$	—	$	—	$	128
Interest on lease liabilities	92		—		—		3		3		—		—		98
Operating lease cost	165		156		61		15		7		26		4		434
Variable lease cost	53		40		1		3		—		2		—		99
Short-term lease cost	9		45		—		37		—		—		—		91
Sublease income	—		(10)		—		—		—		(2)		—		(12)
Total lease cost	$	428	$	231	$	64	$	71	$	14	$	26	$	4	$	838

Year ended December 31, 2019
Finance lease cost:
Amortization of ROU assets	$	44	$	—	$	—	$	7	$	3	$	—	$	—	$	54
Interest on lease liabilities	47		—		—		1		2		—		—		50
Operating lease cost	182		145		52		20		9		27		4		439
Variable lease cost	66		35		—		1		—		1		—		103
Short-term lease cost	9		53		—		29		—		—		—		91
Sublease income	—		(27)		—		—		—		(3)		—		(30)
Total lease cost	$	348	$	206	$	52	$	58	$	14	$	25	$	4	$	707

Rental expense, net of sublease rental income

In accordance with FASB ASC Topic 840, “Leases,” which was superseded by Topic 842, “rental expense, net of sublease rental income” for the year ended December 31, 2018 was as follows (in millions):


Minimum rental expense	$	515
Contingent rental expense	19
Total rental expense	534
Less: Sublease rental income	31
Rental expense, net of sublease rental income	$	503

Additional information related to operating and finance leases

The following table presents additional information related to our operating and finance leases (in millions, except for lease terms and discount rates):


	December 31, 2020						December 31, 2019
	Operating Leases			Finance Leases			Operating Leases			Finance Leases
Supplemental balance sheet information
ROU assets, net reflected in the following balance sheet line items:
Property, plant, and equipment, net	$	—		$	1,622		$	—		$	790
Deferred charges and other assets, net	1,204			—			1,329			—
Total ROU assets, net	$	1,204		$	1,622		$	1,329		$	790

Current lease liabilities reflected in the following balance sheet line items:
Current portion of debt and finance lease obligations	$	—		$	120		$	—		$	41
Accrued expenses	285			—			331			—
Noncurrent lease liabilities reflected in the following balance sheet line items:
Debt and finance lease obligations, less current portion	—			1,544			—			750
Other long-term liabilities	885			—			959			—
Total lease liabilities	$	1,170		$	1,664		$	1,290		$	791

Other supplemental information
Weighted-average remaining lease term	7.6 years			14.5 years			7.7 years			19.7 years
Weighted-average discount rate	4.7		%	4.1		%	4.9		%	5.2		%

Remaining minimum lease payments due under long-term operating leases

The remaining minimum lease payments due under our long-term leases were as follows (in millions):


	December 31, 2020				December 31, 2019
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2020	n/a		n/a		$	376	$	88
2021	$	324	$	187	250		86
2022	231		182		194		87
2023	194		187		160		91
2024	155		178		125		82
2025	107		178		n/a		n/a
Thereafter	435		1,498		498		1,011
Total undiscounted lease payments	1,446		2,410		1,603		1,445
Less: Amount associated with discounting	276		746		313		654
Total lease liabilities	$	1,170	$	1,664	$	1,290	$	791

Remaining minimum lease payments due under long-term finance leases

The remaining minimum lease payments due under our long-term leases were as follows (in millions):


	December 31, 2020				December 31, 2019
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2020	n/a		n/a		$	376	$	88
2021	$	324	$	187	250		86
2022	231		182		194		87
2023	194		187		160		91
2024	155		178		125		82
2025	107		178		n/a		n/a
Thereafter	435		1,498		498		1,011
Total undiscounted lease payments	1,446		2,410		1,603		1,445
Less: Amount associated with discounting	276		746		313		654
Total lease liabilities	$	1,170	$	1,664	$	1,290	$	791