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Lease Accounting | 3 Months Ended
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Mar. 31, 2020
Leases [Abstract] |
Lease Accounting | Lease Accounting Lessee Arrangements We lease a variety of transportation equipment (including trucks, trailers, and railcars), terminals, land and facilities, and office space and equipment. Lease terms vary and can range from short term (under 12 months) to long term (greater than 12 months). A majority of our leases contain options to extend the life of the lease at our sole discretion. We considered these options when determining the lease terms used to derive our right of use asset and associated lease liability. Leases with a term of less than 12 months are not recorded on our Unaudited Condensed Consolidated Balance Sheets. Lease expenses are recognized on a straight line basis over the lease term. Our Right of Use Assets, net balance includes our unamortized initial direct costs associated with certain of our transportation equipment leases. Additionally, it includes our unamortized prepaid rents, our deferred rents, and our previously classified intangible asset associated with a favorable lease. Our lease liability includes our remaining provision for each period presented for our cease-use provision for railcars no longer in use. Lessor Arrangements We have the following contracts in which we act as a lessor. We also, from time to time, sublease certain of our transportation and facilities equipment to third parties. Operating Leases We act as a lessor in our revenue contracts associated with the M/T American Phoenix, within the marine transportation segment, and on our Free State pipeline system, included in our onshore facilities and transportation segment. These revenues are recorded within its respective segment's revenues in the Unaudited Condensed Consolidated Statements of Operations. Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, respectively:
| Three Months Ended March 31,
| 2020 |  | 2019
M/T American Phoenix | $ | 6,643 |  |  | $ | 6,660 |
Free State Pipeline | 1,923 |  |  | 1,634 |
Direct Finance Lease Our direct finance lease includes a lease of the Northeast Jackson Dome ("NEJD") Pipeline. Under the terms of the agreement, we are paid a quarterly payment, which commenced in August 2008. These payments are fixed at approximately $5.2 million per quarter during the lease term at an interest rate of 10.25%. At the end of the lease term in 2028, we will convey all of our interest in the NEJD Pipeline to the lessee for a nominal payment. The following table details the fixed lease payments we will receive for our lessor arrangements as of March 31, 2020:
| Operating Leases | Direct Financing Lease
Maturity of Lessor Receipts | Marine Transportation | Onshore Facilities and Transportation | Onshore Facilities and Transportation
Remainder of 2020 | $ | 13,394 |  | $ | 900 |  | $ | 15,501 |
2021 | — |  | 1,200 |  | 20,668 |
2022 | — |  | 1,200 |  | 20,668 |
2023 | — |  | 1,200 |  | 20,668 |
2024 | — |  | 1,200 |  | 20,668 |
Thereafter | — |  | 4,100 |  | 72,336 |
Total Lease Receipts | 13,394 |  | 9,800 |  | 170,509 |
Less: Interest | — |  | — |  | (55,733 | )
Total Net Lease Receipts | $ | 13,394 |  | $ | 9,800 |  | $ | 114,776 |
The present value of our lease receivables for our direct finance lease includes a current portion of $9.5 million, which is recorded in other current assets on the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2020.
Lease Accounting | Lease Accounting Lessee Arrangements We lease a variety of transportation equipment (including trucks, trailers, and railcars), terminals, land and facilities, and office space and equipment. Lease terms vary and can range from short term (under 12 months) to long term (greater than 12 months). A majority of our leases contain options to extend the life of the lease at our sole discretion. We considered these options when determining the lease terms used to derive our right of use asset and associated lease liability. Leases with a term of less than 12 months are not recorded on our Unaudited Condensed Consolidated Balance Sheets. Lease expenses are recognized on a straight line basis over the lease term. Our Right of Use Assets, net balance includes our unamortized initial direct costs associated with certain of our transportation equipment leases. Additionally, it includes our unamortized prepaid rents, our deferred rents, and our previously classified intangible asset associated with a favorable lease. Our lease liability includes our remaining provision for each period presented for our cease-use provision for railcars no longer in use. Lessor Arrangements We have the following contracts in which we act as a lessor. We also, from time to time, sublease certain of our transportation and facilities equipment to third parties. Operating Leases We act as a lessor in our revenue contracts associated with the M/T American Phoenix, within the marine transportation segment, and on our Free State pipeline system, included in our onshore facilities and transportation segment. These revenues are recorded within its respective segment's revenues in the Unaudited Condensed Consolidated Statements of Operations. Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the three months ended March 31, 2020 and 2019, respectively:
| Three Months Ended March 31,
| 2020 |  | 2019
M/T American Phoenix | $ | 6,643 |  |  | $ | 6,660 |
Free State Pipeline | 1,923 |  |  | 1,634 |
Direct Finance Lease Our direct finance lease includes a lease of the Northeast Jackson Dome ("NEJD") Pipeline. Under the terms of the agreement, we are paid a quarterly payment, which commenced in August 2008. These payments are fixed at approximately $5.2 million per quarter during the lease term at an interest rate of 10.25%. At the end of the lease term in 2028, we will convey all of our interest in the NEJD Pipeline to the lessee for a nominal payment. The following table details the fixed lease payments we will receive for our lessor arrangements as of March 31, 2020:
| Operating Leases | Direct Financing Lease
Maturity of Lessor Receipts | Marine Transportation | Onshore Facilities and Transportation | Onshore Facilities and Transportation
Remainder of 2020 | $ | 13,394 |  | $ | 900 |  | $ | 15,501 |
2021 | — |  | 1,200 |  | 20,668 |
2022 | — |  | 1,200 |  | 20,668 |
2023 | — |  | 1,200 |  | 20,668 |
2024 | — |  | 1,200 |  | 20,668 |
Thereafter | — |  | 4,100 |  | 72,336 |
Total Lease Receipts | 13,394 |  | 9,800 |  | 170,509 |
Less: Interest | — |  | — |  | (55,733 | )
Total Net Lease Receipts | $ | 13,394 |  | $ | 9,800 |  | $ | 114,776 |
The present value of our lease receivables for our direct finance lease includes a current portion of $9.5 million, which is recorded in other current assets on the Unaudited Condensed Consolidated Balance Sheet as of March 31, 2020.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=82846649&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
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