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Leases | 12 Months Ended
--- | ---
Dec. 31, 2023
Leases [Abstract] |
Leases | Leases Lessee We have noncancellable operating leases primarily associated with certain pipeline and transportation equipment. Our remaining lease terms range from less than one year to 41 years. Our leases do not have any outstanding renewal options. The components of lease cost are as follows (in thousands) (1):
|  |  | Years Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Operating lease cost |  |  |  |  | $ | 11,533 |  |  | $ | 12,054 |  |  | $ | 12,586 |
Short-term lease cost |  |  |  |  | 5,031 |  |  | 2,541 |  |  | 1,609 |
Variable lease cost |  |  |  |  | 3,826 |  |  | 4,803 |  |  | 600 |
Total lease cost |  |  |  |  | $ | 20,390 |  |  | $ | 19,398 |  |  | $ | 14,795 |
(1) Includes an immaterial amount of financing lease cost. |  |  |  |  |  |  |  |  |
Supplemental balance sheet information related to leases is as follows: |  |  |  |  |  |  |  |  |
|  | Years Ended December 31,
|  | 2023 |  | 2022
Weighted-average remaining lease term (years) for operating leases |  | 3.5 |  | 3.3
Weighted-average discount rate (1) operating leases |  | 7.3 | % |  | 6.6 | %
Weighted-average remaining lease term (years) for finance lease |  | 3.6 |  | 1.1
Weighted-average discount rate (1) finance lease |  | 7.2 | % |  | 1.9 | %
(1) Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842. |  |  |  |  |  |  |  |  |
Supplemental cash flow and other information related to leases are as follows (in thousands): |  |  |  |  |  |  |  |  |
|  |  |  |  | Years Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | (9,588) |  |  | $ | (12,054) |  |  | $ | (12,586) |
Leased assets obtained in exchange for new operating lease liabilities |  |  |  |  | $ | 3,804 |  |  | $ | 12,682 |  |  | $ | 6,386 |
Leased assets obtained in exchange for new financing lease liabilities |  |  |  |  | $ | 1,162 |  |  | $ | 35 |  |  | $ | 3,071 |
Maturities of lease liabilities as of December 31, 2023 are as follows (in thousands):
Year Ended December 31, | Operating |  | Finance
2024 | $ | 7,515 |  |  | $ | 583 |
2025 | 4,377 |  |  | 288 |
2026 | 1,972 |  |  | 263 |
2027 | 1,473 |  |  | 263 |
2028 | 631 |  |  | 154 |
2029 and thereafter | 1,111 |  |  | — |
Total lease payments | 17,079 |  |  | 1,551 |
Less: present value discount | 2,047 |  |  | 206 |
Lease payable | $ | 15,032 |  |  | $ | 1,345 |
Lessor We are the lessor under certain agreements for gathering, transportation, storage, terminalling, and offloading with Delek Holdings. These agreements have remaining terms ranging from less than one year to 11 years with renewal options ranging from one year to 10 years, and some agreements have multiple renewal options. Revenue from these leases are recorded in affiliate revenue on the consolidated statements of income. For details on Lease Revenue, see Note 5. The following is a schedule of annual undiscounted minimum future lease cash receipts on the non-cancellable operating leases as of December 31, 2023 (in thousands):
2024 | $ | 129,596 |
2025 | 112,428 |
2026 | 107,660 |
2027 | 93,469 |
2028 | 62,909 |
2029 and thereafter | 76,455 |
Total minimum future lease revenue | $ | 582,517 |
The following table summarized our investment in assets held under operating lease by major classes (in thousands):
| December 31,
| 2023 |  | 2022
Land | $ | 14,946 |  |  | $ | 14,946 |
Building and building improvements | 853 |  |  | 853 |
Pipelines, tanks and terminals | 664,567 |  |  | 622,609 |
Other equipment | 3,856 |  |  | 3,856 |
Property, plant and equipment | 684,222 |  |  | 642,264 |
Less: accumulated depreciation | 253,955 |  |  | 221,375 |
Property, plant and equipment, net | $ | 430,267 |  |  | $ | 420,889 |
Leases | Leases Lessee We have noncancellable operating leases primarily associated with certain pipeline and transportation equipment. Our remaining lease terms range from less than one year to 41 years. Our leases do not have any outstanding renewal options. The components of lease cost are as follows (in thousands) (1):
|  |  | Years Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Operating lease cost |  |  |  |  | $ | 11,533 |  |  | $ | 12,054 |  |  | $ | 12,586 |
Short-term lease cost |  |  |  |  | 5,031 |  |  | 2,541 |  |  | 1,609 |
Variable lease cost |  |  |  |  | 3,826 |  |  | 4,803 |  |  | 600 |
Total lease cost |  |  |  |  | $ | 20,390 |  |  | $ | 19,398 |  |  | $ | 14,795 |
(1) Includes an immaterial amount of financing lease cost. |  |  |  |  |  |  |  |  |
Supplemental balance sheet information related to leases is as follows: |  |  |  |  |  |  |  |  |
|  | Years Ended December 31,
|  | 2023 |  | 2022
Weighted-average remaining lease term (years) for operating leases |  | 3.5 |  | 3.3
Weighted-average discount rate (1) operating leases |  | 7.3 | % |  | 6.6 | %
Weighted-average remaining lease term (years) for finance lease |  | 3.6 |  | 1.1
Weighted-average discount rate (1) finance lease |  | 7.2 | % |  | 1.9 | %
(1) Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842. |  |  |  |  |  |  |  |  |
Supplemental cash flow and other information related to leases are as follows (in thousands): |  |  |  |  |  |  |  |  |
|  |  |  |  | Years Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | (9,588) |  |  | $ | (12,054) |  |  | $ | (12,586) |
Leased assets obtained in exchange for new operating lease liabilities |  |  |  |  | $ | 3,804 |  |  | $ | 12,682 |  |  | $ | 6,386 |
Leased assets obtained in exchange for new financing lease liabilities |  |  |  |  | $ | 1,162 |  |  | $ | 35 |  |  | $ | 3,071 |
Maturities of lease liabilities as of December 31, 2023 are as follows (in thousands):
Year Ended December 31, | Operating |  | Finance
2024 | $ | 7,515 |  |  | $ | 583 |
2025 | 4,377 |  |  | 288 |
2026 | 1,972 |  |  | 263 |
2027 | 1,473 |  |  | 263 |
2028 | 631 |  |  | 154 |
2029 and thereafter | 1,111 |  |  | — |
Total lease payments | 17,079 |  |  | 1,551 |
Less: present value discount | 2,047 |  |  | 206 |
Lease payable | $ | 15,032 |  |  | $ | 1,345 |
Lessor We are the lessor under certain agreements for gathering, transportation, storage, terminalling, and offloading with Delek Holdings. These agreements have remaining terms ranging from less than one year to 11 years with renewal options ranging from one year to 10 years, and some agreements have multiple renewal options. Revenue from these leases are recorded in affiliate revenue on the consolidated statements of income. For details on Lease Revenue, see Note 5. The following is a schedule of annual undiscounted minimum future lease cash receipts on the non-cancellable operating leases as of December 31, 2023 (in thousands):
2024 | $ | 129,596 |
2025 | 112,428 |
2026 | 107,660 |
2027 | 93,469 |
2028 | 62,909 |
2029 and thereafter | 76,455 |
Total minimum future lease revenue | $ | 582,517 |
The following table summarized our investment in assets held under operating lease by major classes (in thousands):
| December 31,
| 2023 |  | 2022
Land | $ | 14,946 |  |  | $ | 14,946 |
Building and building improvements | 853 |  |  | 853 |
Pipelines, tanks and terminals | 664,567 |  |  | 622,609 |
Other equipment | 3,856 |  |  | 3,856 |
Property, plant and equipment | 684,222 |  |  | 642,264 |
Less: accumulated depreciation | 253,955 |  |  | 221,375 |
Property, plant and equipment, net | $ | 430,267 |  |  | $ | 420,889 |

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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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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-30/tableOfContent + Details
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