Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Total lease cost by class of underlying asset

Total lease cost by class of underlying asset was as follows (in millions):

	Pipelines, Terminals, and Tanks		Transportation					Feedstock Processing Equipment		Energy and Gases		Real Estate			Other		Total
			Marine			Rail
Three months ended September 30, 2019:
Finance lease cost:
Amortization of ROU assets	$	12	$	—		$	—	$	2	$	—	$	—		$	—	$	14
Interest on lease liabilities	13		—			—		—		—		—			—		13
Operating lease cost	46		39			14		4		3		7			1		114
Variable lease cost	20		4			—		1		—		1			—		26
Short-term lease cost	1		13			—		8		—		—			—		22
Sublease income	—		(8		)	—		—		—		(1		)	—		(9		)
Total lease cost	$	92	$	48		$	14	$	15	$	3	$	7		$	1	$	180
Nine months ended September 30, 2019:
Finance lease cost:
Amortization of ROU assets	$	32	$	—		$	—	$	4	$	2	$	—		$	—	$	38
Interest on lease liabilities	35		—			—		1		2		—			—		38
Operating lease cost	140		107			38		16		7		21			3		332
Variable lease cost	53		21			—		1		—		1			—		76
Short-term lease cost	8		39			—		22		—		—			—		69
Sublease income	—		(24		)	—		—		—		(3		)	—		(27		)
Total lease cost	$	268	$	143		$	38	$	44	$	11	$	19		$	3	$	526

Rental expense, net of sublease rental income

In accordance with Topic 840, “rental expense, net of sublease rental income” was as follows (in millions):

	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Minimum rental expense	$	126	$	377
Contingent rental expense	5		14
Total rental expense	131		391
Less sublease rental income	8		24
Rental expense, net of sublease rental income	$	123	$	367

Additional information related to operating and finance leases

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

	September 30, 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	$	—		$	787
Deferred charges and other assets, net	1,338			—
Total ROU assets, net	$	1,338		$	787
Current lease liabilities reflected in the following balance sheet line items:
Current portion of debt and finance lease obligations	$	—		$	41
Accrued expenses	333			—
Noncurrent lease liabilities reflected in the following balance sheet line items:
Debt and finance lease obligations, less current portion	—			744
Other long-term liabilities	970			—
Total lease liabilities	$	1,303		$	785
Other supplemental information:
Weighted-average remaining lease term	7.7 years			20.0 years
Weighted-average discount rate	5.0		%	5.2		%

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):

	September 30, 2019				December 31, 2018
	Operating Leases		Finance Leases		Operating Leases		Capital Leases
2019 (a)	$	108	$	22	$	359	$	69
2020	349		87		245		65
2021	236		85		178		62
2022	183		85		146		64
2023	150		89		123		65
Thereafter	598		1,078		514		957
Total undiscounted lease payments	1,624		1,446		$	1,565	1,282
Less amount associated with discounting	321		661				676
Total lease liabilities	$	1,303	$	785			$	606

____________________

(a)

The amounts as of September 30, 2019 are for the remaining three 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):

	September 30, 2019				December 31, 2018
	Operating Leases		Finance Leases		Operating Leases		Capital Leases
2019 (a)	$	108	$	22	$	359	$	69
2020	349		87		245		65
2021	236		85		178		62
2022	183		85		146		64
2023	150		89		123		65
Thereafter	598		1,078		514		957
Total undiscounted lease payments	1,624		1,446		$	1,565	1,282
Less amount associated with discounting	321		661				676
Total lease liabilities	$	1,303	$	785			$	606

____________________

(a)

The amounts as of September 30, 2019 are for the remaining three months of 2019.