Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Leases

The following table summarizes the balance sheet information related to our operating and finance leases (in millions):

	March 31, 2022		December 31, 2021
Operating Leases
Operating lease right-of-use assets, net	$	20.3	$	27.4
Accrued expenses and other liabilities	$	10.4	$	13.2
Other long-term liabilities	14.5		19.4
Total operating lease liabilities	$	24.9	$	32.6
Finance Leases
Property, plant and equipment	$	13.4	$	12.3
Less: accumulated depreciation	10.0		9.2
Property, plant and equipment, net	$	3.4	$	3.1
Accrued expenses and other liabilities	$	30.5	$	1.7
Other long-term liabilities	1.5		1.2
Total finance lease liabilities	$	32.0	$	2.9

Lease expense. Our operating lease expense, net totaled $3.5 million and $4.8 million for the three months ended March 31, 2022 and 2021. Our finance lease expense totaled $0.9 million for both the three months ended March 31, 2022 and 2021.

Other. During March 2022, we exercised an option to purchase crude oil railcars under certain of our operating leases as a result of our plan to exit our crude oil railcar operations. In April 2022, we entered into an agreement with a third party to sell the crude oil railcars purchased under the operating lease and, as a result, we reclassified approximately $24.7 million of these assets as current assets held for sale, which is included in prepaid expenses and other current assets on our consolidated balance sheet at March 31, 2022. The current assets held for sale were recorded at fair value based on the anticipated sale proceeds, which is a Level 3 fair value measurement. At March 31, 2022, we also reclassified approximately $28.7 million of operating lease right-of-use liabilities associated with these assets to finance lease right-of-use liabilities, which is included in accrued expenses and other liabilities on our consolidated balance sheet. During the three months ended March 31, 2022, we recorded a loss on long-lived assets of approximately $4.0 million for the difference between the assets held for sale and the carrying value of the assets to be sold.

Lessee, Finance Leases

Leases

The following table summarizes the balance sheet information related to our operating and finance leases (in millions):

	March 31, 2022		December 31, 2021
Operating Leases
Operating lease right-of-use assets, net	$	20.3	$	27.4
Accrued expenses and other liabilities	$	10.4	$	13.2
Other long-term liabilities	14.5		19.4
Total operating lease liabilities	$	24.9	$	32.6
Finance Leases
Property, plant and equipment	$	13.4	$	12.3
Less: accumulated depreciation	10.0		9.2
Property, plant and equipment, net	$	3.4	$	3.1
Accrued expenses and other liabilities	$	30.5	$	1.7
Other long-term liabilities	1.5		1.2
Total finance lease liabilities	$	32.0	$	2.9

Lease expense. Our operating lease expense, net totaled $3.5 million and $4.8 million for the three months ended March 31, 2022 and 2021. Our finance lease expense totaled $0.9 million for both the three months ended March 31, 2022 and 2021.

Other. During March 2022, we exercised an option to purchase crude oil railcars under certain of our operating leases as a result of our plan to exit our crude oil railcar operations. In April 2022, we entered into an agreement with a third party to sell the crude oil railcars purchased under the operating lease and, as a result, we reclassified approximately $24.7 million of these assets as current assets held for sale, which is included in prepaid expenses and other current assets on our consolidated balance sheet at March 31, 2022. The current assets held for sale were recorded at fair value based on the anticipated sale proceeds, which is a Level 3 fair value measurement. At March 31, 2022, we also reclassified approximately $28.7 million of operating lease right-of-use liabilities associated with these assets to finance lease right-of-use liabilities, which is included in accrued expenses and other liabilities on our consolidated balance sheet. During the three months ended March 31, 2022, we recorded a loss on long-lived assets of approximately $4.0 million for the difference between the assets held for sale and the carrying value of the assets to be sold.