Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Total lease cost by class of underlying asset

Total lease cost by class of underlying asset was as follows for the three months ended March 31, 2019 (in millions):

	Pipelines, Terminals, and Tanks		Transportation					Feedstock Processing Equipment		Energy and Gases		Real Estate			Total
			Marine			Rail
Finance lease cost:
Amortization of ROU assets	$	8	$	—		$	—	$	1	$	1	$	—		$	10
Interest on lease liabilities	10		—			—		—		1		—			11
Operating lease cost	47		34			11		7		2		4			105
Variable lease cost	18		10			—		—		—		—			28
Short-term lease cost	3		14			—		6		—		—			23
Sublease income	—		(1		)	—		—		—		(1		)	(2		)
Total lease cost	$	86	$	57		$	11	$	14	$	4	$	3		$	175

Rental expense, net of sublease rental income

In accordance with Topic 840, “rental expense, net of sublease rental income” was as follows for the three months ended March 31, 2018 (in millions):

Minimum rental expense	$	129
Contingent rental expense	6
Total rental expense	135
Less sublease rental income	10
Rental expense, net of sublease rental income	$	125

Additional information related to operating and finance leases

The following table presents additional information related to our operating and finance leases as of March 31, 2019 (in millions, except for lease terms and discount rates):

	March 31, 2019
	Operating Leases			Finance Leases
Supplemental balance sheet information:
ROU assets, net reflected in the following balance sheet line items:
Property, plant, and equipment, net	$	—		$	597
Deferred charges and other assets, net	1,303			—
Total ROU assets, net	$	1,303		$	597
Current lease liabilities reflected in the following balance sheet line items:
Current portion of debt and finance lease obligations	$	—		$	25
Accrued expenses	304			—
Noncurrent lease liabilities reflected in the following balance sheet line items:
Debt and finance lease obligations, less current portion	—			581
Other long-term liabilities	956			—
Total lease liabilities	$	1,260		$	606
Other supplemental information:
Weighted-average remaining lease term	8.3 years			23.3 years
Weighted-average discount rate	5.1		%	5.5		%

Remaining minimum lease payments due under long-term operating leases

The remaining minimum lease payments due under our long-term leases were as follows (in millions):

	March 31, 2019				December 31, 2018
	Operating Leases		Finance Leases		Operating Leases		Capital Leases
2019 (a)	$	273	$	51	$	359	$	69
2020	267		65		245		65
2021	191		63		178		62
2022	157		64		146		64
2023	131		65		123		65
Thereafter	576		939		514		957
Total undiscounted lease payments	1,595		1,247		$	1,565	1,282
Less amount associated with discounting	335		641				676
Total lease liabilities	$	1,260	$	606			$	606

____________________

(a)

The amounts as of March 31, 2019 are for the remaining nine months of 2019.

Remaining minimum lease payments due under long-term finance leases

The remaining minimum lease payments due under our long-term leases were as follows (in millions):

	March 31, 2019				December 31, 2018
	Operating Leases		Finance Leases		Operating Leases		Capital Leases
2019 (a)	$	273	$	51	$	359	$	69
2020	267		65		245		65
2021	191		63		178		62
2022	157		64		146		64
2023	131		65		123		65
Thereafter	576		939		514		957
Total undiscounted lease payments	1,595		1,247		$	1,565	1,282
Less amount associated with discounting	335		641				676
Total lease liabilities	$	1,260	$	606			$	606

____________________

(a)

The amounts as of March 31, 2019 are for the remaining nine months of 2019.