LEASES (Notes)

12 Months Ended

Dec. 31, 2021

Leases of Lessee Disclosure [Text Block]

LEASES

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.

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, 2021		December 31, 2020
		(Thousands of dollars)
Assets
Operating leases	Other assets	$	89,558	$	100,154
Finance lease	Property, plant and equipment	29,962		28,286
Finance lease	Accumulated depreciation	(3,590)		(2,451)
Total leased assets		$	115,930	$	125,989

Liabilities
Current
Operating leases	Operating lease liability	$	13,783	$	13,610
Finance lease	Other current liabilities	2,584		2,153
Noncurrent
Operating leases	Operating lease liability	75,636		87,610
Finance lease	Other deferred credits	21,082		22,143
Total lease liabilities		$	113,085	$	125,516

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


	Years Ended December 31,
	2021		2020
	(Thousands of dollars)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	15,690	$	13,245
Financing cash flows for finance lease	$	2,307	$	1,949
Right-of-use assets obtained in exchange for operating lease liabilities (noncash) (a)	$	1,150	$	99,547

(a) - 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 costs for the periods indicated:


		Years Ended December 31,
	Location in our Consolidated Statement of Income	2021		2020
		(Thousands of dollars)
Operating leases	Operations and maintenance	$	17,747	$	17,162
Finance lease
Amortization of lease assets	Depreciation and amortization	1,139		1,131
Interest on lease liabilities	Interest expense	2,338		2,537
Total lease cost		$	21,224	$	20,830

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


	December 31, 2021	December 31, 2020
Weighted average remaining lease term (years)
Operating leases	7.8	8.3
Finance lease	6.6	7.8
Weighted average discount rate (a)
Operating leases	3.40%	3.20%
Finance lease	9.60%	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, 2021:


	Finance Lease		Operating Leases
	(Millions of dollars)

2022	$	4.7	$	16.4
2023	4.7		13.9
2024	4.7		12.6
2025	5.4		11.2
2026	4.5		11.4
2027 and beyond	8.3		36.9
Total lease payments	32.3		102.4
Less: Interest	8.6		13.0
Present value of lease liabilities	$	23.7	$	89.4