Commitments And Contingencies

3 Months Ended

Mar. 31, 2017

Leases

The Partnership leases certain convenience store and other properties under non-cancellable operating leases whose initial terms are typically 5 to 15 years, with some having a term of 40 years or more, along with options that permit renewals for additional periods. Minimum rent is expensed on a straight-line basis over the term of the lease. In addition, certain leases require additional contingent payments based on sales or motor fuel volumes. We typically are responsible for payment of real estate taxes, maintenance expenses and insurance. These properties are either sublet to third parties or used for our convenience store operations.

Net rent expense consisted of the following:



	For the Three Months Ended March 31,
	2017		2016
	(in millions)
Cash rent:
Store base rent (1) (2)	$	30	$	28
Equipment and other rent (3)	4		5
Total cash rent	34		33
Non-cash rent:
Straight-line rent	—		—
Capital lease offset	—		—
Net rent expense	$	34	$	33

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(1)	Rental income includes sublease rental income totaling $6 million and $6 million for the three months ended March 31, 2017 and 2016, respectively.


(2)	Store base rent includes contingent rent expense totaling $5 million and $5 million for the three months ended March 31, 2017 and 2016, respectively.


(3)	Equipment and other rent consists primarily of store equipment and vehicles.