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v3.20.1

Leases | 3 Months Ended
--- | ---
Mar. 31, 2020
Leases [Abstract] |
Leases | Leases We have cancelable and non-cancelable finance and operating lease obligations for the lease of land, vehicles, office space, retail facilities, and other facilities used in the storage and transportation of crude oil and refined products. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term from one to 30 years or more. There are no material lease arrangements where we are the lessor and no material residual value guarantees associated with any of our leases. The following table provides information on the amounts (in thousands, except lease term and discount rates) of our right-of-use assets (“ROU assets”) and liabilities as of March 31, 2020 and December 31, 2019 and their placement within our condensed consolidated balance sheets:
Lease type |  | Balance Sheet Location |  | March 31, 2020 |  | December 31, 2019
Assets |  |  |  |  |  |
Finance |  | Property, plant, and equipment |  | $ | 13,142 |  |  | $ | 11,552 |
Finance |  | Accumulated amortization |  | (4,927 | ) |  | (4,447 | )
Finance |  | Property, plant, and equipment, net |  | $ | 8,215 |  |  | $ | 7,105 |
Operating |  | Operating lease right-of-use assets |  | 396,013 |  |  | 420,073 |
Total right-of-use assets |  | $ | 404,228 |  |  | $ | 427,178 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Finance |  | Other accrued liabilities |  | $ | 1,844 |  |  | $ | 1,784 |
Operating |  | Operating lease liabilities |  | 67,508 |  |  | 79,999 |
Long-term |  |  |  |  |  |
Finance |  | Finance lease liabilities |  | 7,251 |  |  | 6,227 |
Operating |  | Operating lease liabilities |  | 331,926 |  |  | 340,909 |
Total lease liabilities |  |  |  | $ | 408,529 |  |  | $ | 428,919 |
Weighted-average remaining lease term (in years) |  |  |  |
Finance |  |  |  | 5.93 |  |  | 5.69 |
Operating |  |  |  | 10.54 |  |  | 10.26 |
Weighted-average discount rate |  |  |  |
Finance |  |  |  | 7.48 | % |  | 6.68 | %
Operating |  |  |  | 7.79 | % |  | 7.88 | %
The following table summarizes the lease costs recognized on our condensed consolidated statements of operations (in thousands):
|  | Three Months Ended March 31,
Lease cost type |  | 2020 |  | 2019
Finance lease cost |  |  |  |
Amortization of finance lease ROU assets |  | $ | 480 |  |  | $ | 499 |
Interest on lease liabilities |  | 167 |  |  | 156 |
Operating lease cost |  | 26,970 |  |  | 23,412 |
Variable lease cost |  | 2,695 |  |  | 1,630 |
Short-term lease cost |  | 199 |  |  | 253 |
Net lease cost |  | $ | 30,511 |  |  | $ | 25,950 |
The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
|  | Three Months Ended March 31,
Lease type |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of liabilities |  |  |  |
Financing cash flows from finance leases |  | $ | 388 |  |  | $ | 342 |
Operating cash flows from finance leases |  | 162 |  |  | 156 |
Operating cash flows from operating leases |  | 24,986 |  |  | 21,045 |
Non-cash supplemental amounts |  |  |  |
ROU assets obtained in exchange for new finance lease liabilities |  | 1,590 |  |  | — |
ROU assets obtained in exchange for new operating lease liabilities |  | 2,996 |  |  | 14,130 |
ROU assets terminated in exchange for release from operating lease liabilities |  | 7,738 |  |  | — |
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of March 31, 2020 (in thousands):
For the year ending December 31, |  | Finance leases |  | Operating leases |  | Total
2020 (1) |  | $ | 1,874 |  |  | $ | 78,778 |  |  | $ | 80,652 |
2021 |  | 1,894 |  |  | 68,275 |  |  | 70,169 |
2022 |  | 1,682 |  |  | 67,176 |  |  | 68,858 |
2023 |  | 1,678 |  |  | 53,401 |  |  | 55,079 |
2024 |  | 1,379 |  |  | 43,665 |  |  | 45,044 |
2025 |  | 1,164 |  |  | 42,345 |  |  | 43,509 |
Thereafter |  | 1,658 |  |  | 200,221 |  |  | 201,879 |
Total lease payments |  | 11,329 |  |  | 553,861 |  |  | 565,190 |
Less amount representing interest |  | (2,234 | ) |  | (154,427 | ) |  | (156,661 | )
Present value of lease liabilities |  | $ | 9,095 |  |  | $ | 399,434 |  |  | $ | 408,529 |
_________________________________________________________
(1) | Represents period from April 1, 2020 to December 31, 2020.
Additionally, the Company has $8.9 million and $1.2 million in future undiscounted cash flows for multiple operating leases and three finance leases that have not yet commenced, respectively. These leases are expected to commence when the lessor has made the equipment or location available to the Company to operate or begin construction, respectively.
Leases | Leases We have cancelable and non-cancelable finance and operating lease obligations for the lease of land, vehicles, office space, retail facilities, and other facilities used in the storage and transportation of crude oil and refined products. Most of our leases include one or more options to renew, with renewal terms that can extend the lease term from one to 30 years or more. There are no material lease arrangements where we are the lessor and no material residual value guarantees associated with any of our leases. The following table provides information on the amounts (in thousands, except lease term and discount rates) of our right-of-use assets (“ROU assets”) and liabilities as of March 31, 2020 and December 31, 2019 and their placement within our condensed consolidated balance sheets:
Lease type |  | Balance Sheet Location |  | March 31, 2020 |  | December 31, 2019
Assets |  |  |  |  |  |
Finance |  | Property, plant, and equipment |  | $ | 13,142 |  |  | $ | 11,552 |
Finance |  | Accumulated amortization |  | (4,927 | ) |  | (4,447 | )
Finance |  | Property, plant, and equipment, net |  | $ | 8,215 |  |  | $ | 7,105 |
Operating |  | Operating lease right-of-use assets |  | 396,013 |  |  | 420,073 |
Total right-of-use assets |  | $ | 404,228 |  |  | $ | 427,178 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Finance |  | Other accrued liabilities |  | $ | 1,844 |  |  | $ | 1,784 |
Operating |  | Operating lease liabilities |  | 67,508 |  |  | 79,999 |
Long-term |  |  |  |  |  |
Finance |  | Finance lease liabilities |  | 7,251 |  |  | 6,227 |
Operating |  | Operating lease liabilities |  | 331,926 |  |  | 340,909 |
Total lease liabilities |  |  |  | $ | 408,529 |  |  | $ | 428,919 |
Weighted-average remaining lease term (in years) |  |  |  |
Finance |  |  |  | 5.93 |  |  | 5.69 |
Operating |  |  |  | 10.54 |  |  | 10.26 |
Weighted-average discount rate |  |  |  |
Finance |  |  |  | 7.48 | % |  | 6.68 | %
Operating |  |  |  | 7.79 | % |  | 7.88 | %
The following table summarizes the lease costs recognized on our condensed consolidated statements of operations (in thousands):
|  | Three Months Ended March 31,
Lease cost type |  | 2020 |  | 2019
Finance lease cost |  |  |  |
Amortization of finance lease ROU assets |  | $ | 480 |  |  | $ | 499 |
Interest on lease liabilities |  | 167 |  |  | 156 |
Operating lease cost |  | 26,970 |  |  | 23,412 |
Variable lease cost |  | 2,695 |  |  | 1,630 |
Short-term lease cost |  | 199 |  |  | 253 |
Net lease cost |  | $ | 30,511 |  |  | $ | 25,950 |
The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
|  | Three Months Ended March 31,
Lease type |  | 2020 |  | 2019
Cash paid for amounts included in the measurement of liabilities |  |  |  |
Financing cash flows from finance leases |  | $ | 388 |  |  | $ | 342 |
Operating cash flows from finance leases |  | 162 |  |  | 156 |
Operating cash flows from operating leases |  | 24,986 |  |  | 21,045 |
Non-cash supplemental amounts |  |  |  |
ROU assets obtained in exchange for new finance lease liabilities |  | 1,590 |  |  | — |
ROU assets obtained in exchange for new operating lease liabilities |  | 2,996 |  |  | 14,130 |
ROU assets terminated in exchange for release from operating lease liabilities |  | 7,738 |  |  | — |
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of March 31, 2020 (in thousands):
For the year ending December 31, |  | Finance leases |  | Operating leases |  | Total
2020 (1) |  | $ | 1,874 |  |  | $ | 78,778 |  |  | $ | 80,652 |
2021 |  | 1,894 |  |  | 68,275 |  |  | 70,169 |
2022 |  | 1,682 |  |  | 67,176 |  |  | 68,858 |
2023 |  | 1,678 |  |  | 53,401 |  |  | 55,079 |
2024 |  | 1,379 |  |  | 43,665 |  |  | 45,044 |
2025 |  | 1,164 |  |  | 42,345 |  |  | 43,509 |
Thereafter |  | 1,658 |  |  | 200,221 |  |  | 201,879 |
Total lease payments |  | 11,329 |  |  | 553,861 |  |  | 565,190 |
Less amount representing interest |  | (2,234 | ) |  | (154,427 | ) |  | (156,661 | )
Present value of lease liabilities |  | $ | 9,095 |  |  | $ | 399,434 |  |  | $ | 408,529 |
_________________________________________________________
(1) | Represents period from April 1, 2020 to December 31, 2020.
Additionally, the Company has $8.9 million and $1.2 million in future undiscounted cash flows for multiple operating leases and three finance leases that have not yet commenced, respectively. These leases are expected to commence when the lessor has made the equipment or location available to the Company to operate or begin construction, respectively.

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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 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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