Leases

12 Months Ended

Dec. 31, 2024

Leases

Leases

Note 4. Leases

Lessee Lease Arrangements

The following table presents the components of lease cost for the years ended December 31 (in thousands):

Statement of operations location:	2024		2023		2022
Cost of sales (a)	$	43,754	$	44,895	$	45,125
Selling, general and administrative expenses		3,266		2,727		2,688
Operating expenses (b)		70,520		68,645		66,509
Total lease cost	$	117,540	$	116,267	$	114,322

(a) Includes short-term lease costs of $10.0 million, $6.2 million and $6.2 million for 2024, 2023 and 2022, respectively.

(b) Includes variable lease cost of $12.5 million, $10.5 million and $11.3 million for 2024, 2023 and 2022, respectively, and short-term leases costs which were immaterial for 2024, 2023 and 2022.

Operating lease costs included in cost of sales are primarily associated with leases of barges and railcars and dedicated storage facility lease arrangements. Operating lease costs included in operating expenses are primarily associated with the leases of gasoline stations and convenience stores and terminal lease arrangements where the Partnership is responsible for operating the terminal facility. Operating lease costs included in selling, general and administrative expenses are primarily associated with the leases of office space, computers and automobiles.

The future minimum lease payments to be paid under operating leases in effect and included in the calculation of lease liabilities at December 31, 2024 were as follows (in thousands):

2025	$	73,702
2026		65,216
2027		53,484
2028		43,115
2029		34,201
Thereafter		117,499
Total lease payments		387,217
Less imputed interest		78,692
Total lease liabilities	$	308,525
Current portion	$	56,780
Long-term portion		251,745
Total lease liabilities	$	308,525

The future minimum lease payments include $20.8 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $6.8 million in lease payments that were not fixed at lease commencement or lease modification and $3.0 million related to minimum lease payments for leases that are less than one year.

Supplemental Information Related to Lessee Lease Arrangements

At December 31, 2024, the weighted average non-cancellable lease term was 7.2 years and the weighted average discount rate was 6.2%. The following table presents supplemental information related to leases for the years ended December 31 (in thousands):

	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities	$	83,559	$	86,763	$	91,534
Right-of-use assets obtained in exchange for new lease liabilities	$	109,276	$	30,701	$	74,421

Lessor Lease Arrangements

The following table presents the components of lease revenue for the years ended December 31 (in thousands):

Statement of operations location:	2024		2023		2022
Sales (a)(b)	$	86,937	$	83,534		81,926

(a) Lease revenue includes sub-lessor rental income from leased properties of $48.9 million, $48.2 million and $46.5 million for 2024, 2023 and 2022, respectively, where the Partnership is the lessee of the property.

(b) Includes variable lease revenue of $9.3 million, $8.9 million and $8.1 million for 2024, 2023 and 2022, respectively, and short-term lease revenue which was immaterial for 2024, 2023 and 2022.

The future minimum lease payments to be received under operating leases in effect at December 31, 2024 were as follows (in thousands):

2025	$	79,145
2026		37,676
2027		21,600
2028		6,283
2029		2,330
Thereafter		4,890
Total	$	151,924