Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

(6) Leases

Balance Sheet Summary as of September 30, 2024 and December 31, 2023

The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at September 30, 2024 and December 31, 2023:

	September 30, 2024				December 31, 2023
(in millions)	Operating Leases		Finance Leases		Operating Leases		Finance Leases
ROU assets, net
Pipelines and storage	$	8	$	15	$	12	$	17
Railcars	14		—		12		—
Real estate and other	33		12		29		14
Lease liability
Pipelines and storage	8		25		12		28
Railcars	14		—		12		—
Real estate and other	30		14		25		16

Lease Expense Summary for the Three and Nine Months Ended September 30, 2024 and 2023

We recognize operating lease expense on a straight-line basis over the lease term within Direct operating expenses (exclusive of depreciation and amortization) and Cost of materials and other and finance lease expense on a straight-line basis over the lease term within Depreciation and amortization. For the three and nine months ended September 30, 2024 and 2023, we recognized lease expense comprised of the following components:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2024		2023		2024		2023
Operating lease expense	$	5	$	4	$	14	$	13
Finance lease expense:
Amortization of ROU asset	1		1		4		4
Interest expense on lease liability	1		1		3		3
Short-term lease expense	3		3		9		8

Lease Commitments Not Yet Commenced

Coffeyville Resources Nitrogen Fertilizer, LLC (“CRNF”), a subsidiary of CVR Partners, is party to an On-Site Product Supply Agreement with Messer LLC. Based on terms outlined in this agreement, the Company expects this contract to be recorded as a finance lease with approximately $21 million being capitalized upon lease commencement when the item is placed in service, which is currently expected to occur in the fourth quarter of 2024. Refer to Part II, Item 8, Note 6 (“Leases”) of our 2023 Form 10-K for further information.

Leases

(6) Leases

Balance Sheet Summary as of September 30, 2024 and December 31, 2023

The following tables summarize the right-of-use (“ROU”) asset and lease liability balances for the Company’s operating and finance leases at September 30, 2024 and December 31, 2023:

	September 30, 2024				December 31, 2023
(in millions)	Operating Leases		Finance Leases		Operating Leases		Finance Leases
ROU assets, net
Pipelines and storage	$	8	$	15	$	12	$	17
Railcars	14		—		12		—
Real estate and other	33		12		29		14
Lease liability
Pipelines and storage	8		25		12		28
Railcars	14		—		12		—
Real estate and other	30		14		25		16

Lease Expense Summary for the Three and Nine Months Ended September 30, 2024 and 2023

We recognize operating lease expense on a straight-line basis over the lease term within Direct operating expenses (exclusive of depreciation and amortization) and Cost of materials and other and finance lease expense on a straight-line basis over the lease term within Depreciation and amortization. For the three and nine months ended September 30, 2024 and 2023, we recognized lease expense comprised of the following components:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2024		2023		2024		2023
Operating lease expense	$	5	$	4	$	14	$	13
Finance lease expense:
Amortization of ROU asset	1		1		4		4
Interest expense on lease liability	1		1		3		3
Short-term lease expense	3		3		9		8

Lease Commitments Not Yet Commenced

Coffeyville Resources Nitrogen Fertilizer, LLC (“CRNF”), a subsidiary of CVR Partners, is party to an On-Site Product Supply Agreement with Messer LLC. Based on terms outlined in this agreement, the Company expects this contract to be recorded as a finance lease with approximately $21 million being capitalized upon lease commencement when the item is placed in service, which is currently expected to occur in the fourth quarter of 2024. Refer to Part II, Item 8, Note 6 (“Leases”) of our 2023 Form 10-K for further information.