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Leases (Notes)
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases
We lease certain retail stores, land, building and various equipment from others. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 15 years or more. The exercise of existing lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
Some of our lease agreements include a rate based on equipment usage and others include a rate with fixed increases or inflationary indices based increase. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate and equipment to third parties. Our sublease portfolio consists primarily of operating leases within our retail stores and crude storage equipment.
As of June 30, 2020, $27.3 million of our net property, plant, and equipment balance is subject to an operating lease. This agreement does not include options for the lessee to purchase our leasing equipment, nor does it include any material residual value guarantees or material restrictive covenants. The agreement includes a one year renewal option and certain variable payment based on usage.
The following table presents additional information related to our operating leases in accordance ASC 842, Leases ("ASC 842"):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in millions)
 
2020
 
2019
 
2020
 
2019
Lease Cost
 
 
 
 
 
 
 
 
Operating lease costs
 
$
15.9

 
$
17.1

 
$
31.6

 
$
30.6

Short-term lease costs (1)
 
6.1

 
3.7

 
13.7

 
7.3

Sublease income
 
(2.0
)
 
(2.8
)
 
(3.9
)
 
(4.5
)
Net lease costs
 
$
20.0

 
$
18.0

 
$
41.4

 
$
33.4

 
 
 
 
 
 
 
 
 
Other Information
 
 
 
 
 
 
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
 
 
 
 
 
Operating cash flows from operating leases
 
$
(15.9
)
 
$
(17.1
)
 
$
(31.6
)
 
$
(30.6
)
Leased assets obtained in exchange for new operating lease liabilities
 
$
15.4

 
$
8.1

 
$
22.2

 
$
8.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2020
 
 
Weighted-average remaining lease term (years) operating leases
 
 
 
 
 
6.4

 
 
Weighted-average discount rate operating leases (2)
 
 
 
 
 
6.0
%
 
 
(1) Includes an immaterial amount of variable lease cost.
(2) Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842.