Leases

Leases—Lessee. We lease land, office buildings and terminal equipment at various locations to conduct our business operations. During 2013, we also entered into contracts to lease pipeline capacity, primarily to accommodate the additional barrels from our Longhorn crude oil pipeline. Several of the agreements provide for negotiated renewal options and cancellation penalties, some of which include the requirement to remove our pipeline from the property for non-performance. Management expects that we will generally renew our expiring leases. Leases are evaluated at inception or at any subsequent material modification and, depending on the lease terms, are classified as either capital or operating leases, as appropriate under ASC 840, Leases. We recognize rent expense on a straight-line basis over the life of the lease. Total rent expense was $4.6 million, $4.8 million and $12.0 million for the years ended December 31, 2011, 2012 and 2013, respectively. Future minimum annual rentals under non-cancellable operating leases with initial or remaining terms greater than one year as of December 31, 2013, were as follows (in millions):



2014	$	16.2
2015	16.5
2016	16.1
2017	16.6
2018	13.1
Thereafter	51.5
Total	$	130.0

Leases—Lessor. We have entered into capacity and storage leases with our customers with remaining terms from one to 20 years that are accounted for as operating-type leases. All of the agreements provide for negotiated extensions. Future minimum payments receivable under these arrangements as of December 31, 2013, were as follows (in millions):



2014	$	240.8
2015	229.7
2016	174.6
2017	111.7
2018	71.3
Thereafter	170.5
Total	$	998.6