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Leases
 3 Months Ended
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, 2024December 31, 2023
(in millions)Operating LeasesFinance LeasesOperating LeasesFinance Leases
ROU assets, net
Pipeline and storage$11 $16 $12 $17 
Railcars12 — 12 — 
Real estate and other30 13 29 14 
Lease liability
Pipelines and storage11 28 12 28 
Railcars12 — 12 — 
Real estate and other27 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)20242023
Operating lease expense$4 $4 
Finance lease expense:
Amortization of ROU asset1 1 
Interest expense on lease liability1 1 
Short-term lease expense3 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, 2024December 31, 2023
(in millions)Operating LeasesFinance LeasesOperating LeasesFinance Leases
ROU assets, net
Pipeline and storage$11 $16 $12 $17 
Railcars12 — 12 — 
Real estate and other30 13 29 14 
Lease liability
Pipelines and storage11 28 12 28 
Railcars12 — 12 — 
Real estate and other27 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)20242023
Operating lease expense$4 $4 
Finance lease expense:
Amortization of ROU asset1 1 
Interest expense on lease liability1 1 
Short-term lease expense3 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.