XML 31 R21.htm IDEA: XBRL DOCUMENT v3.23.2
Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases LeasesWe have cancellable and non-cancellable finance and operating lease liabilities 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 residual value guarantees associated with any of our leases.
The following table provides information on the amounts (in thousands) of our right-of-use assets (“ROU assets”) and liabilities as of June 30, 2023 and December 31, 2022 and their placement within our condensed consolidated balance sheets:
Lease typeBalance Sheet LocationJune 30, 2023December 31, 2022
Assets
FinanceProperty, plant, and equipment$22,095 $21,150 
FinanceAccumulated amortization(11,251)(10,308)
FinanceProperty, plant, and equipment, net$10,844 $10,842 
OperatingOperating lease right-of-use assets330,864 350,761 
Total right-of-use assets$341,708 $361,603 
Liabilities
Current
FinanceOther accrued liabilities$1,659 $1,782 
OperatingOperating lease liabilities69,053 66,081 
Long-term
FinanceFinance lease liabilities6,509 6,311 
OperatingOperating lease liabilities270,964 292,701 
Total lease liabilities$348,185 $366,875 
The following table summarizes the weighted-average lease terms and discount rates of our leases as of June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
Weighted-average remaining lease term (in years)
Finance5.765.60
Operating8.969.00
Weighted-average discount rate
Finance7.58 %7.38 %
Operating7.06 %7.10 %
The following table summarizes the lease costs and income recognized in our condensed consolidated statements of operations (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Lease cost (income) type2023202220232022
Finance lease cost
Amortization of finance lease ROU assets$473 $484 $946 $968 
Interest on lease liabilities145 162 292 323 
Operating lease cost24,421 21,993 48,290 44,247 
Variable lease cost3,121 1,491 4,563 2,737 
Short-term lease cost2,869 1,359 5,496 2,345 
Net lease cost$31,029 $25,489 $59,587 $50,620 
Operating lease income (1)$(3,848)$(3,219)$(7,275)$(4,065)
_________________________________________________________
(1)The majority of our lessor income comes from leases with lease terms of one year or less and the estimated future undiscounted cash flows from lessor income are not expected to be material.
The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
Six Months Ended June 30,
Lease type20232022
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases$899 $761 
Operating cash flows from finance leases287 311 
Operating cash flows from operating leases48,594 42,901 
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities944 594 
ROU assets obtained in exchange for new operating lease liabilities16,684 13,692 
ROU assets terminated in exchange for release from operating lease liabilities— 32,902 
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of June 30, 2023 (in thousands):
For the year ending December 31, Finance leasesOperating leasesTotal
2023 (1)$1,156 $49,047 $50,203 
20242,000 78,717 80,717 
20252,031 53,658 55,689 
20261,563 47,025 48,588 
20271,334 44,417 45,751 
2028572 41,528 42,100 
Thereafter1,642 123,092 124,734 
Total lease payments10,298 437,484 447,782 
Less amount representing interest(2,130)(97,467)(99,597)
Present value of lease liabilities$8,168 $340,017 $348,185 
_________________________________________________________
(1)Represents the period from July 1, 2023 to December 31, 2023.
Additionally, we have $3.8 million and $18.5 million in future undiscounted cash flows for finance and operating leases that have not yet commenced, respectively. These leases are expected to commence when the lessor has made the equipment or location available to us to operate or begin construction, respectively.
Leases LeasesWe have cancellable and non-cancellable finance and operating lease liabilities 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 residual value guarantees associated with any of our leases.
The following table provides information on the amounts (in thousands) of our right-of-use assets (“ROU assets”) and liabilities as of June 30, 2023 and December 31, 2022 and their placement within our condensed consolidated balance sheets:
Lease typeBalance Sheet LocationJune 30, 2023December 31, 2022
Assets
FinanceProperty, plant, and equipment$22,095 $21,150 
FinanceAccumulated amortization(11,251)(10,308)
FinanceProperty, plant, and equipment, net$10,844 $10,842 
OperatingOperating lease right-of-use assets330,864 350,761 
Total right-of-use assets$341,708 $361,603 
Liabilities
Current
FinanceOther accrued liabilities$1,659 $1,782 
OperatingOperating lease liabilities69,053 66,081 
Long-term
FinanceFinance lease liabilities6,509 6,311 
OperatingOperating lease liabilities270,964 292,701 
Total lease liabilities$348,185 $366,875 
The following table summarizes the weighted-average lease terms and discount rates of our leases as of June 30, 2023 and December 31, 2022:
June 30, 2023December 31, 2022
Weighted-average remaining lease term (in years)
Finance5.765.60
Operating8.969.00
Weighted-average discount rate
Finance7.58 %7.38 %
Operating7.06 %7.10 %
The following table summarizes the lease costs and income recognized in our condensed consolidated statements of operations (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
Lease cost (income) type2023202220232022
Finance lease cost
Amortization of finance lease ROU assets$473 $484 $946 $968 
Interest on lease liabilities145 162 292 323 
Operating lease cost24,421 21,993 48,290 44,247 
Variable lease cost3,121 1,491 4,563 2,737 
Short-term lease cost2,869 1,359 5,496 2,345 
Net lease cost$31,029 $25,489 $59,587 $50,620 
Operating lease income (1)$(3,848)$(3,219)$(7,275)$(4,065)
_________________________________________________________
(1)The majority of our lessor income comes from leases with lease terms of one year or less and the estimated future undiscounted cash flows from lessor income are not expected to be material.
The following table summarizes the supplemental cash flow information related to leases as follows (in thousands):
Six Months Ended June 30,
Lease type20232022
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases$899 $761 
Operating cash flows from finance leases287 311 
Operating cash flows from operating leases48,594 42,901 
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities944 594 
ROU assets obtained in exchange for new operating lease liabilities16,684 13,692 
ROU assets terminated in exchange for release from operating lease liabilities— 32,902 
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of June 30, 2023 (in thousands):
For the year ending December 31, Finance leasesOperating leasesTotal
2023 (1)$1,156 $49,047 $50,203 
20242,000 78,717 80,717 
20252,031 53,658 55,689 
20261,563 47,025 48,588 
20271,334 44,417 45,751 
2028572 41,528 42,100 
Thereafter1,642 123,092 124,734 
Total lease payments10,298 437,484 447,782 
Less amount representing interest(2,130)(97,467)(99,597)
Present value of lease liabilities$8,168 $340,017 $348,185 
_________________________________________________________
(1)Represents the period from July 1, 2023 to December 31, 2023.
Additionally, we have $3.8 million and $18.5 million in future undiscounted cash flows for finance and operating leases that have not yet commenced, respectively. These leases are expected to commence when the lessor has made the equipment or location available to us to operate or begin construction, respectively.