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Leases | 3 Months Ended
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Mar. 31, 2024
Leases [Abstract] |
Leases | (6) Leases Balance Sheet Summary as of March 31, 2024 and December 31, 2023 The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at March 31, 2024 and December 31, 2023:
| March 31, 2024 |  | December 31, 2023
(in millions) | Operating Leases |  | Finance Leases |  | Operating Leases |  | Finance Leases
ROU assets, net |  |  |  |  |  |  |
Pipeline and storage | $ | 11 |  |  | $ | 16 |  |  | $ | 12 |  |  | $ | 17 |
Railcars | 12 |  |  | — |  |  | 12 |  |  | — |
Real estate and other | 30 |  |  | 13 |  |  | 29 |  |  | 14 |
Lease liability |  |  |  |  |  |  |
Pipelines and storage | 11 |  |  | 28 |  |  | 12 |  |  | 28 |
Railcars | 12 |  |  | — |  |  | 12 |  |  | — |
Real estate and other | 27 |  |  | 15 |  |  | 25 |  |  | 16 |
Lease Expense Summary for the Three Months Ended March 31, 2024 and 2023 We recognize operating lease expense on a straight-line basis over the lease term within Direct operating expenses (exclusive of depreciation and amortization) and Cost of materials and other and finance lease expense on a straight-line basis over the lease term within Depreciation and amortization. For the three months ended March 31, 2024 and 2023, we recognized lease expense comprised of the following components:
| Three Months Ended March 31, |  |
(in millions) | 2024 |  | 2023 |  |  |  |
Operating lease expense | $ | 4 |  |  | $ | 4 |  |  |  |  |
Finance lease expense: |  |  |  |  |  |  |
Amortization of ROU asset | 1 |  |  | 1 |  |  |  |  |
Interest expense on lease liability | 1 |  |  | 1 |  |  |  |  |
Short-term lease expense | 3 |  |  | 2 |  |  |  |  |
The Company has entered into the following material lease commitments that have not yet commenced: •Coffeyville Resources Nitrogen Fertilizer, LLC (“CRNF”), a subsidiary of CVR Partners, is party to an On-Site Product Supply Agreement (as amended, the “Messer Agreement”) with Messer LLC. Based on terms outlined in the Messer Agreement, the Company expects the lease to be classified as a finance lease with an estimated $20 million to $25 million being capitalized upon lease commencement when the Vessel is placed in service, which is currently expected to occur in the second half of 2024. Refer to Part II, Item 8, Note 6 (“Leases”) of our 2023 Form 10-K for further information.
Leases | (6) Leases Balance Sheet Summary as of March 31, 2024 and December 31, 2023 The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at March 31, 2024 and December 31, 2023:
| March 31, 2024 |  | December 31, 2023
(in millions) | Operating Leases |  | Finance Leases |  | Operating Leases |  | Finance Leases
ROU assets, net |  |  |  |  |  |  |
Pipeline and storage | $ | 11 |  |  | $ | 16 |  |  | $ | 12 |  |  | $ | 17 |
Railcars | 12 |  |  | — |  |  | 12 |  |  | — |
Real estate and other | 30 |  |  | 13 |  |  | 29 |  |  | 14 |
Lease liability |  |  |  |  |  |  |
Pipelines and storage | 11 |  |  | 28 |  |  | 12 |  |  | 28 |
Railcars | 12 |  |  | — |  |  | 12 |  |  | — |
Real estate and other | 27 |  |  | 15 |  |  | 25 |  |  | 16 |
Lease Expense Summary for the Three Months Ended March 31, 2024 and 2023 We recognize operating lease expense on a straight-line basis over the lease term within Direct operating expenses (exclusive of depreciation and amortization) and Cost of materials and other and finance lease expense on a straight-line basis over the lease term within Depreciation and amortization. For the three months ended March 31, 2024 and 2023, we recognized lease expense comprised of the following components:
| Three Months Ended March 31, |  |
(in millions) | 2024 |  | 2023 |  |  |  |
Operating lease expense | $ | 4 |  |  | $ | 4 |  |  |  |  |
Finance lease expense: |  |  |  |  |  |  |
Amortization of ROU asset | 1 |  |  | 1 |  |  |  |  |
Interest expense on lease liability | 1 |  |  | 1 |  |  |  |  |
Short-term lease expense | 3 |  |  | 2 |  |  |  |  |
The Company has entered into the following material lease commitments that have not yet commenced: •Coffeyville Resources Nitrogen Fertilizer, LLC (“CRNF”), a subsidiary of CVR Partners, is party to an On-Site Product Supply Agreement (as amended, the “Messer Agreement”) with Messer LLC. Based on terms outlined in the Messer Agreement, the Company expects the lease to be classified as a finance lease with an estimated $20 million to $25 million being capitalized upon lease commencement when the Vessel is placed in service, which is currently expected to occur in the second half of 2024. Refer to Part II, Item 8, Note 6 (“Leases”) of our 2023 Form 10-K for further information.

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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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