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Lease Accounting | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
Lease Accounting | Lease Accounting Lessee Arrangements We lease a variety of transportation equipment (primarily railcars and vessels), terminals, land and facilities, and office space and equipment. Lease terms vary and can range from short term (not greater than 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 12 months or less are not recorded on our Consolidated Balance Sheets and we recognize lease expense for these leases on a straight-line basis over the lease term. Certain lease agreements include lease and non-lease components. We have elected to combine lease and non-lease components for all of our underlying assets for the purpose of deriving our right of use asset and lease liability. Additionally, certain lease payments are driven by variable factors, such as plant production or indexing rates. Variable costs are expensed as incurred and are not included in our determination of our lease liability and right of use asset. As a lessee, we do not have any finance leases and none of our leases contain material residual value guarantees or material restrictive covenants. In addition, most of our leases do not provide an implicit rate, and as such, we determined our incremental borrowing rate based on the information available at the inception of the lease in determining the present value of lease payments. Our lease portfolio consists of operating leases within three major categories: Transportation Equipment, Office Space and Equipment, and Facilities and Equipment. These values are recorded within “Right of Use Assets, net” on the Consolidated Balance Sheets. Current and non-current lease liabilities are recorded within “Accrued liabilities” and “Other long-term liabilities”, respectively, on the Consolidated Balance Sheets. Refer to the table below for our lease balances as of December 31, 2023 and December 31, 2022.
Leases |  | Classification |  | Financial Statement Caption |  | December 31, 2023 |  | December 31, 2022
Assets |  |  |  |  |  |  |  |
|  | Transportation Equipment |  | Right of Use Assets, net |  | $ | 115,689 |  |  | $ | 65,375 |
|  | Office Space & Equipment |  | Right of Use Assets, net |  | 9,014 |  |  | 7,238 |
|  | Facilities and Equipment |  | Right of Use Assets, net |  | 115,638 |  |  | 52,664 |
Total Right of Use Assets, net |  |  |  |  |  | $ | 240,341 |  |  | $ | 125,277 |
Liabilities |  |  |  |  |  |  |  |
Current |  |  |  | Accrued liabilities |  | 29,869 |  |  | 17,978 |
Non-Current |  |  |  | Other long-term liabilities |  | 214,946 |  |  | 113,844 |
Total Lease Liability |  |  |  |  |  | $ | 244,815 |  |  | $ | 131,822 |
Our “Right of Use Assets, net” balance includes our unamortized initial direct costs associated with certain of our transportation equipment, office space and equipment, and facilities and equipment leases. Additionally, it includes our unamortized prepaid rents, our deferred rents, and our previously classified intangible asset associated with a favorable lease. Our “Right of Use Asset, net,” “Accrued liabilities” and “Other long-term liabilities” balances at December 31, 2023 include amounts related to the leases associated with our January 1, 2023 consolidation of ANSAC. See further discussion regarding the consolidation of ANSAC in Note 4. We recorded total operating lease expense of $41.4 million, $13.6 million, and $18.4 million for the years ended December 31, 2023, 2022, and 2021, respectively. The total operating lease expense is net of the variable railcar mileage credits we receive in our Alkali Business of $22.5 million, $22.4 million and $20.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. The total operating cost includes the amounts associated with our existing lease liabilities, along with both short term lease and variable lease costs incurred during the period which are not significant to the operating lease cost individually, or in the aggregate. The following table presents the maturities of our operating lease liabilities as of December 31, 2023 on an undiscounted cash flow basis reconciled to the present value recorded on our Consolidated Balance Sheets:
Maturity of Lease Liabilities |  | Transportation Equipment |  | Office Space and Equipment |  | Facilities and Equipment |  | Operating Leases
2024 |  | $ | 30,039 |  |  | $ | 2,355 |  |  | $ | 15,259 |  |  | $ | 47,653 |
2025 |  | 23,649 |  |  | 2,778 |  |  | 15,295 |  |  | 41,722 |
2026 |  | 16,550 |  |  | 2,453 |  |  | 15,347 |  |  | 34,350 |
2027 |  | 13,545 |  |  | 2,186 |  |  | 15,392 |  |  | 31,123 |
2028 |  | 10,023 |  |  | 1,805 |  |  | 15,438 |  |  | 27,266 |
Thereafter |  | 82,215 |  |  | 9,585 |  |  | 151,204 |  |  | 243,004 |
Total Lease Payments |  | 176,021 |  |  | 21,162 |  |  | 227,935 |  |  | 425,118 |
Less: Interest |  | (64,394) |  |  | (6,081) |  |  | (109,828) |  |  | (180,303) |
Present value of operating lease liabilities |  | $ | 111,627 |  |  | $ | 15,081 |  |  | $ | 118,107 |  |  | $ | 244,815 |
The following table presents the weighted average remaining terms and discount rates related to our right of use assets:
Lease Term and Discount Rate |  |  | December 31, 2023 |  | December 31, 2022
Weighted-average remaining lease term |  |  | 13.18 years |  | 13.70 years
Weighted-average discount rate |  |  | 8.35% |  | 7.75%
The following table provides information regarding the cash paid and right of use assets obtained related to our operating leases:
|  |  |  | Year Ended December 31,
Cash Flows Information |  |  | 2023 |  | 2022 |  | 2021
Cash paid for amounts included in the measurement of lease liabilities |  |  | $ | 58,979 |  |  | $ | 28,576 |  |  | $ | 33,145 |
Leased assets obtained in exchange for new operating lease liabilities |  |  | 150,917 |  |  | 9,443 |  |  | 8,296 |
For the year ended December 31, 2023, cash paid for amounts included in the measurement of lease liabilities and leased assets obtained in exchange for new operating lease liabilities includes those amounts related to leases associated with our January 1, 2023 consolidation of ANSAC. See further discussion regarding the consolidation of ANSAC in Note 4. Lessor Arrangements We have certain contracts discussed below 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 During the years ended December 31, 2023, 2022, and 2021, we acted as a lessor in our revenue contracts associated with our 330,00 barrel-capacity ocean going tanker, the M/T American Phoenix, included in our marine transportation segment. Our lease revenues for this arrangement were $23.6 million, $16.4 million and $15.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. The M/T American Phoenix is under contract through mid-2027. For 2024, 2025, 2026 and through the expiration of the contract in 2027, we expect to receive undiscounted cash flows from fixed leas e payments of $28.1 million, $29.6 million, $30.7 million and $15.2 million, respectively. Our agreements generally contain clauses that may limit the use of the asset or require certain actions be taken by the lessee to maintain the asset for future performance. Direct Finance Lease We formerly held a direct finance lease of the Northeast Jackson Dome Pipeline. Under the terms of the agreement, we were paid a quarterly payment, which commenced on August 3, 2008. Subsequent to entering into the agreement, our customer, a subsidiary of Denbury, Inc., defaulted under the agreement. In 2020, we executed an agreement with our customer to accelerate the payment of $70 million of remaining, unpaid principal payments, which we received in 2021, which is included in our cash flows from operating activities on the Condensed Consolidated Statement of Cash Flows for the year ended December 31, 2021. Additionally as part of this agreement, we transferred the ownership of all of our CO 2 assets, including the Free State pipeline system, to Denbury, Inc.

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