XML 31 R15.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Leases | 12 Months Ended
--- | ---
Dec. 31, 2021
Leases [Abstract] |
LEASES | 6. LEASES General We have entered into long-term leasing arrangements for the right to use various classes of underlying assets as follows: •Pipelines, Terminals, and Tanks includes facilities and equipment used in the storage, transportation, production, and sale of refinery feedstock, refined petroleum product, ethanol, and corn inventories; •Marine Transportation includes time charters for ocean-going tankers and coastal vessels; •Rail Transportation includes railcars and related storage facilities; •Feedstock Processing Equipment includes machinery, equipment, and various facilities used in our refining, renewable diesel, and ethanol operations; •Energy and Gases includes facilities and equipment related to industrial gases and power used in our operations; •Real Estate includes land and rights-of-way associated with our refineries, plants, and pipelines and other logistics assets, as well as office facilities; and •Other includes equipment primarily used at our corporate offices, such as printers and copiers. In addition to fixed lease payments, some arrangements contain provisions for variable lease payments. Certain leases for pipelines, terminals, and tanks provide for variable lease payments based on, among other things, throughput volumes in excess of a base amount. Certain marine transportation leases contain provisions for payments that are contingent on usage. Additionally, if the rental increases are not scheduled in the lease, such as an increase based on subsequent changes in the index or rate, those rents are considered variable lease payments. In all instances, variable lease payments are recognized in the period in which the obligation for those payments is incurred. Lease Costs and Other Supplemental Information Our total lease cost comprises costs that are included in our income statement, as well as costs capitalized as part of an item of property, plant, and equipment or inventory. 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, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of ROU assets | $ | 137 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 19 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 5 |  |  | $ | 167 |
Interest on lease liabilities | 66 |  |  | — |  |  | 1 |  |  | 3 |  |  | 2 |  |  | — |  |  | — |  |  | 72 |
Operating lease cost | 163 |  |  | 105 |  |  | 64 |  |  | 12 |  |  | 8 |  |  | 26 |  |  | 3 |  |  | 381 |
Variable lease cost | 51 |  |  | 21 |  |  | — |  |  | 2 |  |  | — |  |  | 2 |  |  | 3 |  |  | 79 |
Short-term lease cost | 5 |  |  | 44 |  |  | 1 |  |  | 46 |  |  | — |  |  | — |  |  | — |  |  | 96 |
Sublease income | — |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | — |  |  | (7) |
Total lease cost | $ | 422 |  |  | $ | 166 |  |  | $ | 68 |  |  | $ | 82 |  |  | $ | 14 |  |  | $ | 25 |  |  | $ | 11 |  |  | $ | 788 |
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 |
The following table presents additional information related to our operating and finance leases (in millions, except for lease terms and discount rates):
| December 31, 2021 |  | December 31, 2020
| 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 | $ | — |  | $ | 1,846 |  | $ | — |  | $ | 1,622
Deferred charges and other assets, net | 1,284 |  | — |  | 1,204 |  | —
Total ROU assets, net | $ | 1,284 |  | $ | 1,846 |  | $ | 1,204 |  | $ | 1,622
Current lease liabilities reflected in the following balance sheet line items: |  |  |  |  |  |  |
Current portion of debt and finance lease obligations | $ | — |  | $ | 154 |  | $ | — |  | $ | 120
Accrued expenses | 315 |  | — |  | 285 |  | —
Noncurrent lease liabilities reflected in the following balance sheet line items: |  |  |  |  |  |  |
Debt and finance lease obligations, less current portion | — |  | 1,766 |  | — |  | 1,544
Other long-term liabilities | 940 |  | — |  | 885 |  | —
Total lease liabilities | $ | 1,255 |  | $ | 1,920 |  | $ | 1,170 |  | $ | 1,664
Other supplemental information |  |  |  |  |  |  |
Weighted-average remaining lease term | 7.1 years |  | 14.3 years |  | 7.6 years |  | 14.5 years
Weighted-average discount rate | 4.2 | % |  | 4.0 | % |  | 4.7 | % |  | 4.1 | %
Supplemental cash flow information related to our operating and finance leases is presented in Note 19. MVP Terminal Finance Lease We have a 25.01 percent membership interest in MVP, a nonconsolidated joint venture with a subsidiary of Magellan Midstream Partners LP (Magellan). MVP owns and operates a marine terminal (the MVP Terminal) located on the Houston Ship Channel in Pasadena, Texas. Concurrent with the formation of MVP, we entered into a terminaling agreement with MVP to utilize the MVP Terminal upon completion of construction of the terminal, which occurred in the first quarter of 2020. During the three months ended March 31, 2020, we recognized a finance lease ROU asset and related liability of approximately $1.4 billion in connection with this agreement. The lease term included the initial term of 12 years and renewal option periods. In the fourth quarter of 2020, we evaluated our strategy with regard to certain of our logistics investments, including MVP. As a result of this review, we formally notified MVP that we did not intend to renew the terminaling agreement after its initial noncancelable term. Consequently, we reassessed the lease term and remeasured the finance lease liability based on the shortened lease term. We derecognized approximately $600 million of the finance lease liability and related ROU asset, which were noncash financing and investing activities, respectively. As of December 31, 2020, the total lease liability was approximately $800 million. Maturity Analyses As of December 31, 2021, the remaining minimum lease payments due under our long-term leases were as follows (in millions):
| Operating Leases |  | Finance Leases |  |  |  |
2022 | $ | 351 |  |  | $ | 228 |  |  |  |  |
2023 | 280 |  |  | 230 |  |  |  |  |
2024 | 207 |  |  | 214 |  |  |  |  |
2025 | 142 |  |  | 213 |  |  |  |  |
2026 | 111 |  |  | 190 |  |  |  |  |
Thereafter | 417 |  |  | 1,629 |  |  |  |  |
Total undiscounted lease payments | 1,508 |  |  | 2,704 |  |  |  |  |
Less: Amount associated with discounting | 253 |  |  | 784 |  |  |  |  |
Total lease liabilities | $ | 1,255 |  |  | $ | 1,920 |  |  |  |  |
LEASES | 6. LEASES General We have entered into long-term leasing arrangements for the right to use various classes of underlying assets as follows: •Pipelines, Terminals, and Tanks includes facilities and equipment used in the storage, transportation, production, and sale of refinery feedstock, refined petroleum product, ethanol, and corn inventories; •Marine Transportation includes time charters for ocean-going tankers and coastal vessels; •Rail Transportation includes railcars and related storage facilities; •Feedstock Processing Equipment includes machinery, equipment, and various facilities used in our refining, renewable diesel, and ethanol operations; •Energy and Gases includes facilities and equipment related to industrial gases and power used in our operations; •Real Estate includes land and rights-of-way associated with our refineries, plants, and pipelines and other logistics assets, as well as office facilities; and •Other includes equipment primarily used at our corporate offices, such as printers and copiers. In addition to fixed lease payments, some arrangements contain provisions for variable lease payments. Certain leases for pipelines, terminals, and tanks provide for variable lease payments based on, among other things, throughput volumes in excess of a base amount. Certain marine transportation leases contain provisions for payments that are contingent on usage. Additionally, if the rental increases are not scheduled in the lease, such as an increase based on subsequent changes in the index or rate, those rents are considered variable lease payments. In all instances, variable lease payments are recognized in the period in which the obligation for those payments is incurred. Lease Costs and Other Supplemental Information Our total lease cost comprises costs that are included in our income statement, as well as costs capitalized as part of an item of property, plant, and equipment or inventory. 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, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of ROU assets | $ | 137 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 19 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 5 |  |  | $ | 167 |
Interest on lease liabilities | 66 |  |  | — |  |  | 1 |  |  | 3 |  |  | 2 |  |  | — |  |  | — |  |  | 72 |
Operating lease cost | 163 |  |  | 105 |  |  | 64 |  |  | 12 |  |  | 8 |  |  | 26 |  |  | 3 |  |  | 381 |
Variable lease cost | 51 |  |  | 21 |  |  | — |  |  | 2 |  |  | — |  |  | 2 |  |  | 3 |  |  | 79 |
Short-term lease cost | 5 |  |  | 44 |  |  | 1 |  |  | 46 |  |  | — |  |  | — |  |  | — |  |  | 96 |
Sublease income | — |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | (3) |  |  | — |  |  | (7) |
Total lease cost | $ | 422 |  |  | $ | 166 |  |  | $ | 68 |  |  | $ | 82 |  |  | $ | 14 |  |  | $ | 25 |  |  | $ | 11 |  |  | $ | 788 |
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 |
The following table presents additional information related to our operating and finance leases (in millions, except for lease terms and discount rates):
| December 31, 2021 |  | December 31, 2020
| 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 | $ | — |  | $ | 1,846 |  | $ | — |  | $ | 1,622
Deferred charges and other assets, net | 1,284 |  | — |  | 1,204 |  | —
Total ROU assets, net | $ | 1,284 |  | $ | 1,846 |  | $ | 1,204 |  | $ | 1,622
Current lease liabilities reflected in the following balance sheet line items: |  |  |  |  |  |  |
Current portion of debt and finance lease obligations | $ | — |  | $ | 154 |  | $ | — |  | $ | 120
Accrued expenses | 315 |  | — |  | 285 |  | —
Noncurrent lease liabilities reflected in the following balance sheet line items: |  |  |  |  |  |  |
Debt and finance lease obligations, less current portion | — |  | 1,766 |  | — |  | 1,544
Other long-term liabilities | 940 |  | — |  | 885 |  | —
Total lease liabilities | $ | 1,255 |  | $ | 1,920 |  | $ | 1,170 |  | $ | 1,664
Other supplemental information |  |  |  |  |  |  |
Weighted-average remaining lease term | 7.1 years |  | 14.3 years |  | 7.6 years |  | 14.5 years
Weighted-average discount rate | 4.2 | % |  | 4.0 | % |  | 4.7 | % |  | 4.1 | %
Supplemental cash flow information related to our operating and finance leases is presented in Note 19. MVP Terminal Finance Lease We have a 25.01 percent membership interest in MVP, a nonconsolidated joint venture with a subsidiary of Magellan Midstream Partners LP (Magellan). MVP owns and operates a marine terminal (the MVP Terminal) located on the Houston Ship Channel in Pasadena, Texas. Concurrent with the formation of MVP, we entered into a terminaling agreement with MVP to utilize the MVP Terminal upon completion of construction of the terminal, which occurred in the first quarter of 2020. During the three months ended March 31, 2020, we recognized a finance lease ROU asset and related liability of approximately $1.4 billion in connection with this agreement. The lease term included the initial term of 12 years and renewal option periods. In the fourth quarter of 2020, we evaluated our strategy with regard to certain of our logistics investments, including MVP. As a result of this review, we formally notified MVP that we did not intend to renew the terminaling agreement after its initial noncancelable term. Consequently, we reassessed the lease term and remeasured the finance lease liability based on the shortened lease term. We derecognized approximately $600 million of the finance lease liability and related ROU asset, which were noncash financing and investing activities, respectively. As of December 31, 2020, the total lease liability was approximately $800 million. Maturity Analyses As of December 31, 2021, the remaining minimum lease payments due under our long-term leases were as follows (in millions):
| Operating Leases |  | Finance Leases |  |  |  |
2022 | $ | 351 |  |  | $ | 228 |  |  |  |  |
2023 | 280 |  |  | 230 |  |  |  |  |
2024 | 207 |  |  | 214 |  |  |  |  |
2025 | 142 |  |  | 213 |  |  |  |  |
2026 | 111 |  |  | 190 |  |  |  |  |
Thereafter | 417 |  |  | 1,629 |  |  |  |  |
Total undiscounted lease payments | 1,508 |  |  | 2,704 |  |  |  |  |
Less: Amount associated with discounting | 253 |  |  | 784 |  |  |  |  |
Total lease liabilities | $ | 1,255 |  |  | $ | 1,920 |  |  |  |  |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration