Leases

12 Months Ended

Dec. 31, 2023

We have operating leases for certain property and equipment under various noncancelable agreements, the most significant of which are rail car leases and barge tow charters for the distribution of our products. The rail car leases currently have minimum terms ranging from one to eleven years and the barge tow charter commitments range from one to six years. Our rail car leases and barge tow charters commonly contain provisions for automatic renewal that can extend the lease term unless cancelled by either party. We also have operating leases for terminal and warehouse storage for our distribution system, some of which contain minimum throughput requirements. The storage agreements contain minimum terms generally ranging from one to five years and commonly contain provisions for automatic renewal thereafter unless cancelled by either party. The renewal provisions for our rail car leases, barge tow charters and terminal and warehouse storage agreements are not reasonably certain to be exercised.

The components of lease costs were as follows:


	Year ended December 31,
	2023		2022		2021
	(in millions)
Operating lease cost	$	113	$	103	$	102



Short-term lease cost	30		48		25
Variable lease cost	4		6		7

Total lease cost	$	147	$	157	$	134

Supplemental cash flow information related to leases was as follows:


	Year ended December 31,
	2023		2022		2021
	(in millions)

Operating cash flows - cash paid for amounts included in the measurement of operating lease liabilities	$	107	$	100	$	97




Right-of-use (ROU) assets obtained in exchange for operating lease obligations	103		106		80

Supplemental balance sheet information related to leases was as follows:


	December 31,
	2023		2022
	(in millions)

Operating lease ROU assets	$	259	$	254

Current operating lease liabilities	$	96	$	93
Operating lease liabilities	168		167
Total operating lease liabilities	$	264	$	260


	December 31,
	2023		2022
Operating leases
Weighted-average remaining lease term	5 years		4 years
Weighted-average discount rate	4.7	%	3.9	%

As of December 31, 2023, we have entered into two additional leases that have not yet commenced, with future minimum lease payments totaling $26 million and each with a lease term of seven years.

The following table reconciles the undiscounted cash flows for our operating leases to the operating lease liabilities recorded on our consolidated balance sheet as of December 31, 2023.


	Operating lease payments
	(in millions)
2024	$	93
2025	65
2026	47
2027	34
2028	22
Thereafter	47
Total lease payments	308
Less: imputed interest	(44)

Present value of lease liabilities	264
Less: Current operating lease liabilities	(96)
Operating lease liabilities	$	168