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Leases (Tables) | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Lease, Cost | The components of lease cost are as follows (in thousands) (1):
|  |  | Years Ended December 31,
|  |  |  |  | 2024 |  | 2023 |  | 2022
Operating lease cost |  |  |  |  | $ | 10,370 |  |  | $ | 11,533 |  |  | $ | 12,054 |
Short-term lease cost |  |  |  |  | 7,359 |  |  | 5,031 |  |  | 2,541 |
Variable lease cost |  |  |  |  | 1,261 |  |  | 3,826 |  |  | 4,803 |
Total lease cost |  |  |  |  | $ | 18,990 |  |  | $ | 20,390 |  |  | $ | 19,398 |
(1) Includes an immaterial amount of financing lease cost. |  |  |  |  |  |  |  |  |
Supplemental balance sheet information related to leases is as follows: |  |  |  |  |  |  |  |  |
|  | Years Ended December 31,
|  | 2024 |  | 2023
Weighted-average remaining lease term (years) for operating leases |  | 3.4 |  | 3.5
Weighted-average discount rate (1) operating leases |  | 7.4 | % |  | 7.3 | %
Weighted-average remaining lease term (years) for finance lease |  | 3.5 |  | 3.6
Weighted-average discount rate (1) finance lease |  | 8.4 | % |  | 7.2 | %
(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,
|  |  |  |  | 2024 |  | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  |  | $ | (8,101) |  |  | $ | (9,588) |  |  | $ | (12,054) |
Leased assets obtained in exchange for new operating lease liabilities |  |  |  |  | $ | 3,665 |  |  | $ | 3,804 |  |  | $ | 12,682 |
Leased assets obtained in exchange for new financing lease liabilities |  |  |  |  | $ | — |  |  | $ | 1,162 |  |  | $ | 35 |
Finance Lease, Liability, to be Paid, Maturity | Maturities of lease liabilities as of December 31, 2024 are as follows (in thousands):
Year Ended December 31, | Operating |  | Finance
2025 | $ | 5,924 |  |  | $ | 283 |
2026 | 2,871 |  |  | 263 |
2027 | 1,906 |  |  | 263 |
2028 | 905 |  |  | 154 |
2029 | 234 |  |  | — |
2030 and thereafter | 984 |  |  | — |
Total lease payments | 12,824 |  |  | 963 |
Less: present value discount | 1,480 |  |  | 127 |
Lease liabilities | $ | 11,344 |  |  | $ | 836 |
Lessee, Operating Lease, Liability, to be Paid, Maturity | Maturities of lease liabilities as of December 31, 2024 are as follows (in thousands):
Year Ended December 31, | Operating |  | Finance
2025 | $ | 5,924 |  |  | $ | 283 |
2026 | 2,871 |  |  | 263 |
2027 | 1,906 |  |  | 263 |
2028 | 905 |  |  | 154 |
2029 | 234 |  |  | — |
2030 and thereafter | 984 |  |  | — |
Total lease payments | 12,824 |  |  | 963 |
Less: present value discount | 1,480 |  |  | 127 |
Lease liabilities | $ | 11,344 |  |  | $ | 836 |
Sales-type Lease, Lease Income | Lease income included in the consolidated statements of income and comprehensive income was as follows:
|  | Year Ended December 31,
(in thousands) |  |  | 2024 | 2023 | 2022
Operating leases: |  |  |  |  |
Lease revenue |  |  | $ | 268,843 |  | $ | 311,096 |  | $ | 287,370 |
Sales-type leases: |  |  |  |  |
Interest income (Sales-type rental revenue-fixed minimum) |  |  | 47,709 |  | — |  | — |
Lease revenue (Revenue from variable lease payments) |  |  | 7,673 |  | — |  | — |
Sales-type lease income |  |  | $ | 55,382 |  | $ | — |  | $ | — |
The following presents the consolidated financial statement impact of sales-type leases on commencement or modification date for the year ended December 31, 2024. There were no amounts recognized for the year ended December 31, 2023. These transactions are non-cash transactions. The amount recognized on commencement date was recorded in contributions in the consolidated statements of partners' equity (deficit), given the underlying agreements are between entities under common control.
|  | Year Ended December 31,
(in thousands) |  |  |  | 2024 |
Lease receivables |  |  |  | $ | 217,263 |  |
Unguaranteed residual assets |  |  |  | 10,573 |  |
Property, plant and equipment, net |  |  |  | (108,143) |  |
Amount recognized on commencement date |  |  |  | $ | 119,693 |  |
Schedule of Lease Payments to be Received | The following is a schedule of annual undiscounted minimum future lease cash receipts on the non-cancelable operating leases as of December 31, 2024 (in thousands):
2025 | $ | 108,376 |
2026 | 105,957 |
2027 | 93,867 |
2028 | 63,306 |
2029 | 57,194 |
2030 and thereafter | 16,258 |
Total minimum future lease revenue | $ | 444,958 |
Sales-Type and Direct Financing Leases, Payment to be Received, Maturity | Annual future minimum undiscounted lease receipts under our sales-type leases were as follows as of December 31, 2024 (in thousands):
2025 | $ | 104,323 |
2026 | 83,926 |
2027 | 78,858 |
2028 | 78,858 |
2029 | 78,858 |
2030 and thereafter | 262,763 |
Total minimum future lease revenue | 687,586 |
Less: Imputed interest | 483,783 |
Lease receivable (1) | $ | 203,803 |
Current lease receivables (2) | $ | 22,783 |
Long-term lease receivables (3) | $ | 181,020 |
Unguaranteed residual assets (3) | $ | 12,106 |
(1) This amount does not include the unguaranteed residual assets. (2) Presented in Lease receivable - affiliate, in the consolidated balance sheets. (3) Presented in Net lease investment - affiliate in the consolidated balance sheets.
Property, Plant, and Equipment, Lessor Asset under Operating Lease | The following table summarized our investment in assets held under operating lease by major classes (in thousands):
| December 31,
| 2024 |  | 2023
Land | $ | 11,643 |  |  | $ | 14,946 |
Building and building improvements | 387 |  |  | 853 |
Pipelines, tanks and terminals | 419,528 |  |  | 664,567 |
Other equipment | 2,229 |  |  | 3,856 |
Property, plant and equipment | 433,787 |  |  | 684,222 |
Less: accumulated depreciation | 143,961 |  |  | 253,955 |
Property, plant and equipment, net | $ | 289,826 |  |  | $ | 430,267 |

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- Definition Tabular disclosure of lessee's lease cost. Includes, but is not limited to, interest expense for finance lease, amortization of right-of-use asset for finance lease, operating lease cost, short-term lease cost, variable lease cost and sublease income. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-4 + Details
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- Definition Tabular disclosure of maturity of undiscounted cash flows to be received on annual basis for sales-type and direct financing leases receivable. Includes, but is not limited to, reconciliation to lease receivable recognized in statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479773/842-30-50-10 + Details
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- Definition Tabular disclosure of lessor's underlying asset for which right to use has been conveyed to lessee under operating lease. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 840 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481501/840-20-50-4 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479773/842-30-50-13 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 360 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482099/360-10-50-1 + Details
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