XML 32 R21.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Leases
 6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
We 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, weighted-average remaining lease term, and weighted average discount rate as of June 30, 2024, and December 31, 2023 and their placement within our condensed consolidated balance sheets:
Lease typeBalance Sheet LocationJune 30, 2024December 31, 2023
Assets
FinanceProperty, plant, and equipment$30,136 $28,264 
FinanceAccumulated amortization(13,345)(12,212)
FinanceProperty, plant, and equipment, net$16,791 $16,052 
Operating
Operating lease right-of-use (“ROU”) assets
349,192 346,454 
Total right-of-use assets$365,983 $362,506 
Liabilities
Current
FinanceOther accrued liabilities$1,998 $1,820 
OperatingOperating lease liabilities69,662 72,833 
Long-term
FinanceFinance lease liabilities12,411 12,438 
OperatingOperating lease liabilities289,436 282,517 
Total lease liabilities$373,507 $369,608 
Weighted-average remaining lease term (in years)
Finance10.5011.02
Operating8.298.67
Weighted-average discount rate
Finance7.08 %8.04 %
Operating7.30 %7.24 %
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) type2024202320242023
Finance lease cost
Amortization of finance lease ROU assets$590 $473 $1,134 $946 
Interest on lease liabilities255 145 499 292 
Operating lease cost26,550 24,421 52,367 48,290 
Variable lease cost1,451 3,121 3,413 4,563 
Short-term lease cost2,018 2,869 4,076 5,496 
Net lease cost$30,864 $31,029 $61,489 $59,587 
Operating lease income (1)$(1,035)$(3,848)$(4,900)$(7,275)
_________________________________________________________
(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 type20242023
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases$858 $899 
Operating cash flows from finance leases478 287 
Operating cash flows from operating leases51,490 48,594 
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities1,619 944 
ROU assets obtained in exchange for new operating lease liabilities42,058 16,684 
ROU assets terminated in exchange for release from operating lease liabilities— — 
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of June 30, 2024 (in thousands):
For the year ending December 31, Finance leasesOperating leasesTotal
2024 (1)$1,468 $51,809 $53,277 
20253,094 77,943 81,037 
20262,620 71,469 74,089 
20272,400 61,543 63,943 
20281,559 56,892 58,451 
20291,179 16,385 17,564 
Thereafter8,445 119,920 128,365 
Total lease payments20,765 455,961 476,726 
Less amount representing interest(6,356)(96,863)(103,219)
Present value of lease liabilities$14,409 $359,098 $373,507 
_________________________________________________________
(1)Represents the period from July 1, 2024 to December 31, 2024.
Additionally, we have $9.3 million in future undiscounted cash flows for operating leases that have not yet commenced. 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 Leases
We 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, weighted-average remaining lease term, and weighted average discount rate as of June 30, 2024, and December 31, 2023 and their placement within our condensed consolidated balance sheets:
Lease typeBalance Sheet LocationJune 30, 2024December 31, 2023
Assets
FinanceProperty, plant, and equipment$30,136 $28,264 
FinanceAccumulated amortization(13,345)(12,212)
FinanceProperty, plant, and equipment, net$16,791 $16,052 
Operating
Operating lease right-of-use (“ROU”) assets
349,192 346,454 
Total right-of-use assets$365,983 $362,506 
Liabilities
Current
FinanceOther accrued liabilities$1,998 $1,820 
OperatingOperating lease liabilities69,662 72,833 
Long-term
FinanceFinance lease liabilities12,411 12,438 
OperatingOperating lease liabilities289,436 282,517 
Total lease liabilities$373,507 $369,608 
Weighted-average remaining lease term (in years)
Finance10.5011.02
Operating8.298.67
Weighted-average discount rate
Finance7.08 %8.04 %
Operating7.30 %7.24 %
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) type2024202320242023
Finance lease cost
Amortization of finance lease ROU assets$590 $473 $1,134 $946 
Interest on lease liabilities255 145 499 292 
Operating lease cost26,550 24,421 52,367 48,290 
Variable lease cost1,451 3,121 3,413 4,563 
Short-term lease cost2,018 2,869 4,076 5,496 
Net lease cost$30,864 $31,029 $61,489 $59,587 
Operating lease income (1)$(1,035)$(3,848)$(4,900)$(7,275)
_________________________________________________________
(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 type20242023
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases$858 $899 
Operating cash flows from finance leases478 287 
Operating cash flows from operating leases51,490 48,594 
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities1,619 944 
ROU assets obtained in exchange for new operating lease liabilities42,058 16,684 
ROU assets terminated in exchange for release from operating lease liabilities— — 
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of June 30, 2024 (in thousands):
For the year ending December 31, Finance leasesOperating leasesTotal
2024 (1)$1,468 $51,809 $53,277 
20253,094 77,943 81,037 
20262,620 71,469 74,089 
20272,400 61,543 63,943 
20281,559 56,892 58,451 
20291,179 16,385 17,564 
Thereafter8,445 119,920 128,365 
Total lease payments20,765 455,961 476,726 
Less amount representing interest(6,356)(96,863)(103,219)
Present value of lease liabilities$14,409 $359,098 $373,507 
_________________________________________________________
(1)Represents the period from July 1, 2024 to December 31, 2024.
Additionally, we have $9.3 million in future undiscounted cash flows for operating leases that have not yet commenced. These leases are expected to commence when the lessor has made the equipment or location available to us to operate or begin construction, respectively.