LEASE ASSETS AND LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Right-of-Use Assets and Lease Liabilities

Right-of-use assets and lease liabilities included in our consolidated balance sheet were as follows:


		December 31,
	Balance Sheet Location	2020		2019
		(Thousands of Dollars)
Right-of-Use Assets:
Operating	Other long-term assets, net	$	87,443	$	81,219
Finance	Property, plant and equipment, net of accumulated amortization of $8,444 and $3,748	$	73,319	$	74,953

Lease Liabilities:
Operating:
Current	Accrued liabilities	$	10,890	$	10,416
Noncurrent	Other long-term liabilities	74,899		70,083
Total operating lease liabilities		$	85,789	$	80,499
Finance:
Current	Current portion of debt and finance lease obligations	$	3,839	$	4,546
Noncurrent	Long-term debt, less current portion	54,238		55,446
Total finance lease liabilities		$	58,077	$	59,992

Maturity Analysis of Lease Liabilities

As of December 31, 2020, maturities of our operating and finance lease liabilities were as follows:


	Operating Leases		Finance Leases
	(Thousands of Dollars)
2021	$	13,137	$	5,907
2022	12,419		5,231
2023	11,170		5,102
2024	10,294		4,622
2025	8,154		3,898
Thereafter	53,288		56,079
Total lease payments	$	108,462	$	80,839
Less: Interest	22,673		22,762
Present value of lease liabilities	$	85,789	$	58,077

Lease Cost

Costs incurred for leases, including costs associated with discontinued operations, were as follows:


	Year Ended December 31,
	2020		2019
	(Thousands of Dollars)
Operating lease cost	$	16,814	$	29,167
Finance lease cost:
Amortization of right-of-use assets	$	4,700	$	3,748
Interest expense on lease liability	$	2,201	$	2,212
Short-term lease cost	$	15,359	$	19,140
Variable lease cost	$	8,653	$	6,990
Total lease cost	$	47,727	$	61,257

Additional Lease Information

The table below presents additional information regarding our leases as of and for the years ended December 31, 2020 and 2019:


	Year ended December 31,
	2020						2019
	Operating Leases			Finance Leases			Operating Leases			Finance Leases
	(Thousands of Dollars, Except Term and Rate Data)
Cash outflows from operating activities	$	14,487		$	2,208		$	27,567		$	2,027
Cash outflows from financing activities	$	—		$	4,981		$	—		$	3,700
Right-of-use assets obtained in exchange for lease liabilities	$	20,830		$	3,077		$	2,153		$	4,430
Weighted-average remaining lease term (in years)	13			19			15			20
Weighted-average discount rate	3.2		%	3.7		%	3.6		%	3.7		%

Assets Leased to Others

The table below presents cost, accumulated depreciation and useful life information related to our storage lease assets, which are included in our “Pipeline, storage and terminals” asset class within property, plant and equipment, as of December 31, 2020 and 2019:


	Estimated Useful Life	December 31,
		2020		2019
	(Years)	(Thousands of Dollars)
Lease storage assets, at cost	30	$	241,664	238,204
Less accumulated depreciation		(130,217)		(121,545)
Lease storage assets, net		$	111,447	$	116,659