LEASES

12 Months Ended

Dec. 31, 2024

Lease Position as of December 31, 2024 and December 31, 2023

The table below presents the lease related assets and liabilities recorded on the Company’s Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023:


(in millions)	Classification on the Balance Sheet	December 31, 2024		December 31, 2023
Assets
Operating lease assets - third party	Lease right of use assets - third party	$	800.6	$	731.9
Operating lease assets - affiliate	Lease right of use assets - affiliate	320.9		380.8
Finance lease assets	Lease right of use assets - third party	42.9		56.3
Total lease right of use assets		$	1,164.4	$	1,169.0

Liabilities
Current liabilities:
Operating lease liabilities - third party	Current operating lease liabilities - third party	$	187.6	$	131.1
Operating lease liabilities - affiliate	Current operating lease liabilities - affiliate	113.6		108.7
Finance lease liabilities - third party	Accrued expenses	11.2		12.2
Noncurrent liabilities:
Operating lease liabilities - third party	Long-term operating lease liabilities - third party	620.4		607.9
Operating lease liabilities - affiliate	Long-term operating lease liabilities - affiliate	207.0		272.1
Finance lease liabilities - third party	Long-term financing lease liabilities - third party	35.4		46.1
Total lease liabilities		$	1,175.2	$	1,178.1

Lease Costs

The table below presents certain information related to costs for the Company’s leases for the year ended December 31, 2024 and December 31, 2023:


Lease Costs (in millions)	December 31, 2024		December 31, 2023
Components of total lease costs:
Finance lease costs
Amortization of right of use assets	$	14.0	$	13.9
Interest on lease liabilities	3.6		4.5
Operating lease costs	424.3		355.7
Short-term lease costs	78.6		137.7
Variable lease costs	85.8		68.9
Sub-lease income	(3.0)		—
Total lease costs	$	603.3	$	580.7

Other Information

The table below presents supplemental cash flow information related to leases for the year ended December 31, 2024 and December 31, 2023 (in millions):


	Years Ended December 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	421.5	$	349.3
Operating cash flows for finance leases	3.6		4.5
Financing cash flows for finance leases	12.2		14.1
Supplemental non-cash quantification of assets acquired or remeasured under operating and financing leases	333.1		335.4

Lease Term and Discount Rate

The table below presents certain information related to the weighted average remaining lease term and weighted average discount rate for the Company’s leases as of December 31, 2024:


Weighted average remaining lease term - operating leases	7.5 years
Weighted average remaining lease term - finance leases	3.8 years

Weighted average discount rate - operating leases	12.5	%
Weighted average discount rate - finance leases	7.1	%

Undiscounted Cash Flows

The table below reconciles the fixed component of the undiscounted cash flows for each of the periods presented to the lease liabilities recorded on the Consolidated Balance Sheets as of December 31, 2024:


Amounts due in the year ended December 31, (in millions)	Finance Leases		Operating Leases
2025	$	14.1	$	413.7
2026	13.7		288.5
2027	13.7		176.9
2028	11.0		143.7
2029	0.7		129.8
Thereafter	—		638.8
Total minimum lease payments	53.2		1,791.4
Less: effect of discounting	6.6		662.8
Present value of future minimum lease payments	46.6		1,128.6
Less: current obligations under leases	11.2		301.2
Long-term lease obligations	$	35.4	$	827.4

As of December 31, 2024, the Company has entered into certain leases that have not yet commenced. Such leases include a 2-year lease for an oil tanker, with future lease payments estimated to total approximately $36.9 million. No other such pending leases, either individually or in the aggregate, are material. There are no material lease arrangements in which the Company is the lessor.

In the normal course of business, the Company enters into certain affiliate lease arrangements with PBFX for the use of certain storage, terminaling and pipeline assets. The terms for these affiliate leases generally range from seven to fifteen years. The Company uses the same methodology for discounting the lease payments on affiliate leases as it does for third party leases as described above. For the years ended December 31, 2024 and December 31, 2023, the Company incurred operating lease costs, related to affiliate operating leases, of $135.0 million and $136.1 million, respectively.

LEASES