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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,
202320222021
Operating lease cost$11,533 $12,054 $12,586 
Short-term lease cost5,031 2,541 1,609 
Variable lease cost3,826 4,803 600 
Total lease cost$20,390 $19,398 $14,795 
(1) Includes an immaterial amount of financing lease cost.
Supplemental balance sheet information related to leases is as follows:
Years Ended December 31,
20232022
Weighted-average remaining lease term (years) for operating leases3.53.3
Weighted-average discount rate (1) operating leases
7.3 %6.6 %
Weighted-average remaining lease term (years) for finance lease3.61.1
Weighted-average discount rate (1) finance lease
7.2 %1.9 %
(1) Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842.
Supplemental cash flow and other information related to leases are as follows (in thousands):
Years Ended December 31,
202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(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,OperatingFinance
2024$7,515 $583 
20254,377 288 
20261,972 263 
20271,473 263 
2028631 154 
2029 and thereafter1,111 — 
Total lease payments17,079 1,551 
Less: present value discount2,047 206 
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 
2025112,428 
2026107,660 
202793,469 
202862,909 
2029 and thereafter76,455 
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,
20232022
Land$14,946 $14,946 
Building and building improvements853 853 
Pipelines, tanks and terminals664,567 622,609 
Other equipment3,856 3,856 
Property, plant and equipment684,222 642,264 
Less: accumulated depreciation253,955 221,375 
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,
202320222021
Operating lease cost$11,533 $12,054 $12,586 
Short-term lease cost5,031 2,541 1,609 
Variable lease cost3,826 4,803 600 
Total lease cost$20,390 $19,398 $14,795 
(1) Includes an immaterial amount of financing lease cost.
Supplemental balance sheet information related to leases is as follows:
Years Ended December 31,
20232022
Weighted-average remaining lease term (years) for operating leases3.53.3
Weighted-average discount rate (1) operating leases
7.3 %6.6 %
Weighted-average remaining lease term (years) for finance lease3.61.1
Weighted-average discount rate (1) finance lease
7.2 %1.9 %
(1) Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842.
Supplemental cash flow and other information related to leases are as follows (in thousands):
Years Ended December 31,
202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$(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,OperatingFinance
2024$7,515 $583 
20254,377 288 
20261,972 263 
20271,473 263 
2028631 154 
2029 and thereafter1,111 — 
Total lease payments17,079 1,551 
Less: present value discount2,047 206 
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 
2025112,428 
2026107,660 
202793,469 
202862,909 
2029 and thereafter76,455 
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,
20232022
Land$14,946 $14,946 
Building and building improvements853 853 
Pipelines, tanks and terminals664,567 622,609 
Other equipment3,856 3,856 
Property, plant and equipment684,222 642,264 
Less: accumulated depreciation253,955 221,375 
Property, plant and equipment, net$430,267 $420,889