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LEASES (Notes)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

LEASESWe adopted Topic 842 using the modified retrospective method and the optional transition method to record the adoption impact through a cumulative-effect adjustment to retained earnings as of January 1, 2019. Results for reporting periods

beginning after January 1, 2019, are presented under Topic 842, while prior periods are not adjusted and continue to be reported under the accounting standards in effect for those periods.

We lease certain buildings, warehouses, office space, pipeline capacity, land and equipment, including pipeline equipment, rail cars and information technology equipment. Our lease payments are generally straight-line and the exercise of lease renewal options, which vary in term, is at our sole discretion. We include renewal periods in a lease term if we are reasonably certain to exercise available renewal options. We apply the short-term policy election, which allows us to exclude from recognition leases with an initial term of 12 months or less. Our lease agreements do not include any residual value guarantees or material restrictive covenants.

Through ONEOK Leasing Company, L.L.C. and ONEOK Parking Company, L.L.C., we own an office building and a parking garage and lease excess space in these facilities to affiliates and others. Our consolidated lease income is not material.

In December 2019, we entered into an operating lease for pipeline capacity with a lease term of 10 years that commenced January 1, 2020. In connection with this lease, we recognized an operating lease right-of-use asset and a lease liability with remaining balances of $69.0 million and $69.9 million, respectively, as of December 31, 2020.

The following table sets forth information about our lease assets and liabilities included in our Consolidated Balance Sheet for the periods indicated:

Leases			Location in our Consolidated Balance Sheet						December 31, 2020						December 31, 2019
									(Thousands of dollars)
Assets
Operating leases			Other assets						$	100,154					$	15,147
Finance lease			Property, plant and equipment						28,286						28,286
Finance lease			Accumulated depreciation						(2,451)						(1,320)
Total leased assets									$	125,989					$	42,113
Liabilities
Current
Operating leases			Operating lease liability						$	13,610					$	1,883
Finance lease			Other current liabilities						2,153						1,949
Noncurrent
Operating leases			Operating lease liability						87,610						13,509
Finance lease			Other deferred credits						22,143						24,296
Total lease liabilities									$	125,516					$	41,637

The following table sets forth supplemental cash flow information related to our leases:

						Years Ended December 31,
						2020						2019
						(Thousands of dollars)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases						$	13,245					$	6,213
Financing cash flows for finance lease						$	1,949					$	1,764
Right-of-use assets obtained in exchange for operating lease liabilities (noncash)						$	99,547					$	4,097

The following table sets forth information about our lease costs for the periods indicated:

									Years Ended December 31,
			Location in our Consolidated Statement of Income						2020						2019
									(Thousands of dollars)
Operating leases			Operations and maintenance						$	17,162					$	6,803
Finance lease
Amortization of lease assets			Depreciation and amortization						1,131						1,131
Interest on lease liabilities			Interest expense						2,537						2,721
Total lease cost									$	20,830					$	10,655

The following table sets forth information about our leases for the periods indicated:

												December 31, 2020						December 31, 2019
Weighted average remaining lease term (years)
Operating leases												8.3						10.4
Finance lease												7.8						8.8
Weighted average discount rate (a)
Operating leases												3.20%						4.58%
Finance lease												10.00%						10.00%

(a) - Our weighted-average discount rates represent the rate implicit in the lease or our incremental borrowing rate for a term equal to the remaining term of the lease.

The following table sets forth the maturity of our lease liabilities as of December 31, 2020:

						Finance Lease						Operating Leases
						(Millions of dollars)
2021						$	4.5					$	16.5
2022						4.5						15.1
2023						4.5						13.8
2024						4.5						12.5
2025						4.5						11.1
2026 and beyond						12.6						47.1
Total lease payments						35.1						116.1
Less: Interest						10.8						14.9
Present value of lease liabilities						$	24.3					$	101.2

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- References

No definition available.

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- Definition

The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-URI http://asc.fasb.org/topic&trid=2208923

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