XML 32 R21.htm IDEA: XBRL DOCUMENT
v3.24.3

Leases | 9 Months Ended
--- | ---
Sep. 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 September 30, 2024, and December 31, 2023 and their placement within our condensed consolidated balance sheets:
Lease type |  | Balance Sheet Location |  | September 30, 2024 |  | December 31, 2023
Assets |  |  |  |  |  |
Finance |  | Property, plant, and equipment |  | $ | 30,136 |  |  | $ | 28,264 |
Finance |  | Accumulated amortization |  | (13,937) |  |  | (12,212) |
Finance |  | Property, plant, and equipment, net |  | $ | 16,199 |  |  | $ | 16,052 |
Operating |  | Operating lease right-of-use (“ROU”) assets |  | 435,048 |  |  | 346,454 |
Total right-of-use assets |  | $ | 451,247 |  |  | $ | 362,506 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Finance |  | Other accrued liabilities |  | $ | 2,027 |  |  | $ | 1,820 |
Operating |  | Operating lease liabilities |  | 75,401 |  |  | 72,833 |
Long-term |  |  |  |  |  |
Finance |  | Finance lease liabilities |  | 11,899 |  |  | 12,438 |
Operating |  | Operating lease liabilities |  | 370,979 |  |  | 282,517 |
Total lease liabilities |  |  |  | $ | 460,306 |  |  | $ | 369,608 |
Weighted-average remaining lease term (in years) |  |  |  |
Finance |  |  |  | 10.46 |  | 11.02
Operating |  |  |  | 7.37 |  | 8.67
Weighted-average discount rate |  |  |  |
Finance |  |  |  | 7.09 | % |  | 8.04 | %
Operating |  |  |  | 7.77 | % |  | 7.24 | %
The following table summarizes the lease costs and income recognized in our condensed consolidated statements of operations (in thousands):
|  |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Lease cost (income) type |  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of finance lease ROU assets |  |  |  | $ | 592 |  |  | $ | 476 |  |  | $ | 1,726 |  |  | $ | 1,422 |
Interest on lease liabilities |  |  |  | 246 |  |  | 154 |  |  | 745 |  |  | 446 |
Operating lease cost |  |  |  | 29,319 |  |  | 24,898 |  |  | 81,686 |  |  | 73,188 |
Variable lease cost |  |  |  | 2,041 |  |  | 2,807 |  |  | 5,454 |  |  | 62,394 |
Short-term lease cost |  |  |  | 22 |  |  | 2,778 |  |  | 4,098 |  |  | 7,341 |
Net lease cost |  |  |  | $ | 32,220 |  |  | $ | 31,113 |  |  | $ | 93,709 |  |  | $ | 144,791 |
Operating lease income (1) |  |  |  | $ | (550) |  |  | $ | (3,918) |  |  | $ | (5,450) |  |  | $ | (11,193) |
_________________________________________________________ (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):
|  |  |  | Nine Months Ended September 30,
Lease type |  |  |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of liabilities |  |  |  |  |  |
Financing cash flows from finance leases |  |  |  | $ | 1,378 |  |  | $ | 1,287 |
Operating cash flows from finance leases |  |  |  | 715 |  |  | 440 |
Operating cash flows from operating leases |  |  |  | 79,629 |  |  | 72,407 |
Non-cash supplemental amounts |  |  |  |  |  |
ROU assets obtained in exchange for new finance lease liabilities |  |  |  | 1,619 |  |  | 3,021 |
ROU assets obtained in exchange for new operating lease liabilities |  |  |  | 150,308 |  |  | 35,822 |
ROU assets terminated in exchange for release from operating lease liabilities |  |  |  | 41 |  |  | 1,439 |
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of September 30, 2024 (in thousands):
For the year ending December 31, |  | Finance leases |  | Operating leases |  | Total
2024 (1) |  | $ | 734 |  |  | $ | 26,788 |  |  | $ | 27,522 |
2025 |  | 3,094 |  |  | 104,944 |  |  | 108,038 |
2026 |  | 2,620 |  |  | 105,622 |  |  | 108,242 |
2027 |  | 2,400 |  |  | 96,206 |  |  | 98,606 |
2028 |  | 1,559 |  |  | 91,526 |  |  | 93,085 |
2029 |  | 1,179 |  |  | 18,174 |  |  | 19,353 |
Thereafter |  | 8,445 |  |  | 120,769 |  |  | 129,214 |
Total lease payments |  | 20,031 |  |  | 564,029 |  |  | 584,060 |
Less amount representing interest |  | (6,105) |  |  | (117,649) |  |  | (123,754) |
Present value of lease liabilities |  | $ | 13,926 |  |  | $ | 446,380 |  |  | $ | 460,306 |
_________________________________________________________ (1)Represents the period from October 1, 2024 to December 31, 2024. Additionally, we have $1.0 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 September 30, 2024, and December 31, 2023 and their placement within our condensed consolidated balance sheets:
Lease type |  | Balance Sheet Location |  | September 30, 2024 |  | December 31, 2023
Assets |  |  |  |  |  |
Finance |  | Property, plant, and equipment |  | $ | 30,136 |  |  | $ | 28,264 |
Finance |  | Accumulated amortization |  | (13,937) |  |  | (12,212) |
Finance |  | Property, plant, and equipment, net |  | $ | 16,199 |  |  | $ | 16,052 |
Operating |  | Operating lease right-of-use (“ROU”) assets |  | 435,048 |  |  | 346,454 |
Total right-of-use assets |  | $ | 451,247 |  |  | $ | 362,506 |
Liabilities |  |  |  |  |  |
Current |  |  |  |  |  |
Finance |  | Other accrued liabilities |  | $ | 2,027 |  |  | $ | 1,820 |
Operating |  | Operating lease liabilities |  | 75,401 |  |  | 72,833 |
Long-term |  |  |  |  |  |
Finance |  | Finance lease liabilities |  | 11,899 |  |  | 12,438 |
Operating |  | Operating lease liabilities |  | 370,979 |  |  | 282,517 |
Total lease liabilities |  |  |  | $ | 460,306 |  |  | $ | 369,608 |
Weighted-average remaining lease term (in years) |  |  |  |
Finance |  |  |  | 10.46 |  | 11.02
Operating |  |  |  | 7.37 |  | 8.67
Weighted-average discount rate |  |  |  |
Finance |  |  |  | 7.09 | % |  | 8.04 | %
Operating |  |  |  | 7.77 | % |  | 7.24 | %
The following table summarizes the lease costs and income recognized in our condensed consolidated statements of operations (in thousands):
|  |  |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Lease cost (income) type |  |  |  | 2024 |  | 2023 |  | 2024 |  | 2023
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of finance lease ROU assets |  |  |  | $ | 592 |  |  | $ | 476 |  |  | $ | 1,726 |  |  | $ | 1,422 |
Interest on lease liabilities |  |  |  | 246 |  |  | 154 |  |  | 745 |  |  | 446 |
Operating lease cost |  |  |  | 29,319 |  |  | 24,898 |  |  | 81,686 |  |  | 73,188 |
Variable lease cost |  |  |  | 2,041 |  |  | 2,807 |  |  | 5,454 |  |  | 62,394 |
Short-term lease cost |  |  |  | 22 |  |  | 2,778 |  |  | 4,098 |  |  | 7,341 |
Net lease cost |  |  |  | $ | 32,220 |  |  | $ | 31,113 |  |  | $ | 93,709 |  |  | $ | 144,791 |
Operating lease income (1) |  |  |  | $ | (550) |  |  | $ | (3,918) |  |  | $ | (5,450) |  |  | $ | (11,193) |
_________________________________________________________ (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):
|  |  |  | Nine Months Ended September 30,
Lease type |  |  |  | 2024 |  | 2023
Cash paid for amounts included in the measurement of liabilities |  |  |  |  |  |
Financing cash flows from finance leases |  |  |  | $ | 1,378 |  |  | $ | 1,287 |
Operating cash flows from finance leases |  |  |  | 715 |  |  | 440 |
Operating cash flows from operating leases |  |  |  | 79,629 |  |  | 72,407 |
Non-cash supplemental amounts |  |  |  |  |  |
ROU assets obtained in exchange for new finance lease liabilities |  |  |  | 1,619 |  |  | 3,021 |
ROU assets obtained in exchange for new operating lease liabilities |  |  |  | 150,308 |  |  | 35,822 |
ROU assets terminated in exchange for release from operating lease liabilities |  |  |  | 41 |  |  | 1,439 |
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of September 30, 2024 (in thousands):
For the year ending December 31, |  | Finance leases |  | Operating leases |  | Total
2024 (1) |  | $ | 734 |  |  | $ | 26,788 |  |  | $ | 27,522 |
2025 |  | 3,094 |  |  | 104,944 |  |  | 108,038 |
2026 |  | 2,620 |  |  | 105,622 |  |  | 108,242 |
2027 |  | 2,400 |  |  | 96,206 |  |  | 98,606 |
2028 |  | 1,559 |  |  | 91,526 |  |  | 93,085 |
2029 |  | 1,179 |  |  | 18,174 |  |  | 19,353 |
Thereafter |  | 8,445 |  |  | 120,769 |  |  | 129,214 |
Total lease payments |  | 20,031 |  |  | 564,029 |  |  | 584,060 |
Less amount representing interest |  | (6,105) |  |  | (117,649) |  |  | (123,754) |
Present value of lease liabilities |  | $ | 13,926 |  |  | $ | 446,380 |  |  | $ | 460,306 |
_________________________________________________________ (1)Represents the period from October 1, 2024 to December 31, 2024. Additionally, we have $1.0 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.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration