Commitments and Contingent Liabilities (Tables)

3 Months Ended

Mar. 31, 2025

The following table presents information regarding operating and finance leases where we are the lessee at March 31, 2025:

Asset Category	ROU Asset Carrying Value (1)		Lease Liability Carrying Value (2)		Weighted- Average Remaining Term	Weighted- Average Discount Rate (3)
Operating leases
Storage and pipeline facilities	$	209	$	208	8 years	4.5%
Transportation equipment		40		41	4 years	4.8%
Office and warehouse space		168		203	12 years	3.4%
Total operating leases		417		452
Finance leases
Transportation equipment		12		13	4 years	4.8%
Total finance leases		12		13
Total leases	$	429	$	465

(1)	ROU asset amounts are a component of “Other assets” on our Unaudited Condensed Consolidated Balance Sheet.
(2)	At March 31, 2025, operating lease liabilities of $104 million and $348 million were included within “Other current liabilities” and “Other long-term liabilities,” respectively. Additionally at March 31, 2025, finance lease liabilities of $2 million and $11 million were included within "Other current liabilities" and "Other long-term liabilities," respectively.
(3)	The discount rate for each category of assets represents the weighted average of either (i) the implicit rate applicable to the underlying leases (where determinable) or (ii) our incremental borrowing rate adjusted for collateralization (if the implicit rate is not determinable). In general, the discount rates are based on either information available at the lease commencement date or January 1, 2019 for leases existing at the adoption date for ASC 842, Leases.

The following table disaggregates our total operating and finance lease expense for the periods indicated:

	For the Three Months Ended March 31,
	2025			2024
Long-term leases:
Fixed operating lease expense:
Non-cash lease expense (amortization of ROU assets)	$	28		$	20
Related accretion expense on lease liability balances		4			4
Total fixed operating lease expense		32			24
Fixed finance lease expense:
Amortization of ROU assets (1)		–	*		–
Interest on finance lease liabilities (1)		–	*		–
Total fixed finance lease expense (1)		–	*		–
Variable lease expense		5			4
Total long-term lease expense		37			28
Short-term leases		35			29
Total lease expense	$	72		$	57

(1)	For the three months ended March 31, 2025, total fixed finance lease expense, which include amortization of finance lease ROU assets and interest on finance lease liabilities, was less than $1 million.
*	Amount is negligible.