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Leases
 3 Months Ended
Mar. 31, 2023
Leases [Abstract]  
Leases LeasesWe 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 as of March 31, 2023 and December 31, 2022 and their placement within our condensed consolidated balance sheets:
Lease typeBalance Sheet LocationMarch 31, 2023December 31, 2022
Assets
FinanceProperty, plant, and equipment$21,881 $21,150 
FinanceAccumulated amortization(10,781)(10,308)
FinanceProperty, plant, and equipment, net$11,100 $10,842 
OperatingOperating lease right-of-use assets341,292 350,761 
Total right-of-use assets$352,392 $361,603 
Liabilities
Current
FinanceOther accrued liabilities$1,717 $1,782 
OperatingOperating lease liabilities66,529 66,081 
Long-term
FinanceFinance lease liabilities6,670 6,311 
OperatingOperating lease liabilities281,471 292,701 
Total lease liabilities$356,387 $366,875 
The following table summarizes the weighted-average lease terms and discount rates of our leases as of March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
Weighted-average remaining lease term (in years)
Finance5.695.60
Operating9.069.00
Weighted-average discount rate
Finance7.47 %7.38 %
Operating7.06 %7.10 %
The following table summarizes the lease costs and income recognized in our condensed consolidated statements of operations (in thousands):
Three Months Ended March 31,
Lease cost (income) type20232022
Finance lease cost
Amortization of finance lease ROU assets$473 $484 
Interest on lease liabilities147 161 
Operating lease cost23,869 22,254 
Variable lease cost1,442 1,246 
Short-term lease cost2,627 986 
Net lease cost$28,558 $25,131 
Operating lease income (1)$(3,427)$(846)
_________________________________________________________
(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):
Three Months Ended March 31,
Lease type20232022
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases$461 $482 
Operating cash flows from finance leases141 161 
Operating cash flows from operating leases25,015 19,394 
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities731 594 
ROU assets obtained in exchange for new operating lease liabilities8,380 10,678 
ROU assets terminated in exchange for release from operating lease liabilities— 1,029 
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of March 31, 2023 (in thousands):
For the year ending December 31, Finance leasesOperating leasesTotal
2023 (1)$1,734 $68,943 $70,677 
20241,999 75,514 77,513 
20251,994 51,357 53,351 
20261,526 46,264 47,790 
20271,298 44,066 45,364 
2028535 41,179 41,714 
Thereafter1,402 122,666 124,068 
Total lease payments10,488 449,989 460,477 
Less amount representing interest(2,101)(101,989)(104,090)
Present value of lease liabilities$8,387 $348,000 $356,387 
_________________________________________________________
(1)Represents the period from April 1, 2023 to December 31, 2023.
Additionally, we have $3.8 million and $12.4 million in future undiscounted cash flows for finance and operating leases that have not yet commenced, respectively. 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 LeasesWe 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 as of March 31, 2023 and December 31, 2022 and their placement within our condensed consolidated balance sheets:
Lease typeBalance Sheet LocationMarch 31, 2023December 31, 2022
Assets
FinanceProperty, plant, and equipment$21,881 $21,150 
FinanceAccumulated amortization(10,781)(10,308)
FinanceProperty, plant, and equipment, net$11,100 $10,842 
OperatingOperating lease right-of-use assets341,292 350,761 
Total right-of-use assets$352,392 $361,603 
Liabilities
Current
FinanceOther accrued liabilities$1,717 $1,782 
OperatingOperating lease liabilities66,529 66,081 
Long-term
FinanceFinance lease liabilities6,670 6,311 
OperatingOperating lease liabilities281,471 292,701 
Total lease liabilities$356,387 $366,875 
The following table summarizes the weighted-average lease terms and discount rates of our leases as of March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
Weighted-average remaining lease term (in years)
Finance5.695.60
Operating9.069.00
Weighted-average discount rate
Finance7.47 %7.38 %
Operating7.06 %7.10 %
The following table summarizes the lease costs and income recognized in our condensed consolidated statements of operations (in thousands):
Three Months Ended March 31,
Lease cost (income) type20232022
Finance lease cost
Amortization of finance lease ROU assets$473 $484 
Interest on lease liabilities147 161 
Operating lease cost23,869 22,254 
Variable lease cost1,442 1,246 
Short-term lease cost2,627 986 
Net lease cost$28,558 $25,131 
Operating lease income (1)$(3,427)$(846)
_________________________________________________________
(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):
Three Months Ended March 31,
Lease type20232022
Cash paid for amounts included in the measurement of liabilities
Financing cash flows from finance leases$461 $482 
Operating cash flows from finance leases141 161 
Operating cash flows from operating leases25,015 19,394 
Non-cash supplemental amounts
ROU assets obtained in exchange for new finance lease liabilities731 594 
ROU assets obtained in exchange for new operating lease liabilities8,380 10,678 
ROU assets terminated in exchange for release from operating lease liabilities— 1,029 
The table below includes the estimated future undiscounted cash flows for finance and operating leases as of March 31, 2023 (in thousands):
For the year ending December 31, Finance leasesOperating leasesTotal
2023 (1)$1,734 $68,943 $70,677 
20241,999 75,514 77,513 
20251,994 51,357 53,351 
20261,526 46,264 47,790 
20271,298 44,066 45,364 
2028535 41,179 41,714 
Thereafter1,402 122,666 124,068 
Total lease payments10,488 449,989 460,477 
Less amount representing interest(2,101)(101,989)(104,090)
Present value of lease liabilities$8,387 $348,000 $356,387 
_________________________________________________________
(1)Represents the period from April 1, 2023 to December 31, 2023.
Additionally, we have $3.8 million and $12.4 million in future undiscounted cash flows for finance and operating leases that have not yet commenced, respectively. These leases are expected to commence when the lessor has made the equipment or location available to us to operate or begin construction, respectively.