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HEP Holly Energy Partners

Cover Page

Cover Page - shares3 Months Ended
Mar. 31, 2021Apr. 30, 2021
Cover [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateMar. 31,
2021
Document Transition Reportfalse
Entity File Number1-32225
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number20-0833098
Entity Address, Address Line One2828 N. Harwood, Suite 1300
Entity Address, City or TownDallas
Entity Address, State or ProvinceTX
Entity Address, Postal Zip Code75201
City Area Code214
Local Phone Number871-3555
Title of 12(b) SecurityCommon Limited Partner Units
Trading SymbolHEP
Security Exchange NameNYSE
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding (in shares)105,440,201
Entity Registrant NameHOLLY ENERGY PARTNERS LP
Entity Central Index Key0001283140
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Amendment Flagfalse

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents (Cushing Connect VIEs: $17,967 and $18,259, respectively) $ 19,753 $ 21,990
Accounts receivable:
Trade17,451 14,543
Affiliates45,467 47,972
Total accounts receivable62,918 62,515
Prepaid and other current assets9,502 9,487
Total current assets92,173 93,992
Properties and equipment, net (Cushing Connect VIEs: $65,741 and $47,801, respectively)1,432,799 1,450,685
Operating lease right-of-use assets, net2,912 2,979
Net investment in leases206,124 166,316
Intangible assets, net83,813 87,315
Goodwill223,650 234,684
Equity method investments (Cushing Connect VIEs: $38,964 and $39,456, respectively)118,265 120,544
Other assets10,790 11,050
Total assets2,170,526 2,167,565
Accounts payable:
Trade (Cushing Connect VIEs: $16,063 and $14,076, respectively)30,169 28,280
Affiliates10,190 18,120
Total accounts payable40,359 46,400
Accrued interest4,661 10,892
Deferred revenue14,089 11,368
Accrued property taxes5,250 3,992
Current operating lease liabilities882 875
Current finance lease liabilities3,668 3,713
Other current liabilities2,989 2,505
Total current liabilities71,898 79,745
Long-term debt1,388,335 1,405,603
Noncurrent operating lease liabilities2,404 2,476
Noncurrent finance lease liabilities67,309 68,047
Other long-term liabilities11,907 12,905
Deferred revenue35,314 40,581
Class B unit53,743 52,850
Partners’ equity:
Common unitholders (105,440 units issued and outstanding at March 31, 2021 and December 31, 2020)405,976 379,292
Noncontrolling interests133,640 126,066
Total equity539,616 505,358
Total liabilities and equity $ 2,170,526 $ 2,167,565

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents $ 19,753 $ 21,990
Properties and equipment, net1,432,799 1,450,685
Equity method investments118,265 120,544
Trade payable $ 30,169 $ 28,280
Common units outstanding (in shares)105,440,000 105,440,000
Common unit issued (in shares)105,440,000 105,440,000
VIEs
Condensed Balance Sheet Statements, Captions [Line Items]
Cash and cash equivalents $ 17,967 $ 18,259
Properties and equipment, net65,741 47,801
Equity method investments38,964 39,456
Trade payable $ 16,063 $ 14,076

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Revenues:
Revenues: $ 127,183 $ 127,854
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)41,365 34,981
Depreciation and amortization25,065 23,978
General and administrative2,968 2,702
Goodwill impairment11,034 0
Total operating costs and expenses80,432 61,661
Operating income46,751 66,193
Other income (expense):
Equity in earnings of equity method investments1,763 1,714
Interest expense(13,240)(17,767)
Interest income6,548 2,218
Gain on sales-type leases24,650 0
Loss on early extinguishment of debt0 (25,915)
Gain on sale of assets and other502 506
Total other income (expense)20,223 (39,244)
Income before income taxes66,974 26,949
State income tax expense(37)(37)
Net income66,937 26,912
Allocation of net income attributable to noncontrolling interests(2,540)(2,051)
Net income attributable to the partners $ 64,397 $ 24,861
Limited partners’ per unit interest in earnings—basic and diluted (in USD per share) $ 0.61 $ 0.24
Weighted average limited partners’ units outstanding (in shares)105,440 105,440
Affiliates
Revenues:
Revenues: $ 101,926 $ 101,428
Third parties
Revenues:
Revenues: $ 25,257 $ 26,426

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash flows from operating activities
Net income $ 66,937 $ 26,912
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization25,065 23,978
(Gain) loss on sale of assets(262)(417)
Loss on early extinguishment of debt0 25,915
Gain on sales-type leases(24,650)0
Goodwill impairment11,034 0
Amortization of deferred charges844 799
Equity-based compensation expense683 506
Equity in earnings of equity method investments, net of distributions(617)(1,164)
(Increase) decrease in operating assets:
Accounts receivable—trade506 3,093
Accounts receivable—affiliates2,505 11,310
Prepaid and other current assets463 126
Increase (decrease) in operating liabilities:
Accounts payable—trade8,565 2,921
Accounts payable—affiliates(7,930)(10,344)
Accrued interest(6,232)(8,511)
Deferred revenue4,013 (184)
Accrued property taxes1,258 1,908
Other current liabilities484 760
Other, net(524)339
Net cash provided by operating activities82,142 77,947
Cash flows from investing activities
Additions to properties and equipment(33,218)(18,942)
Investment in Cushing Connect JV Terminal0 (2,345)
Proceeds from sale of assets283 417
Distributions in excess of equity in earnings of equity investments2,897 0
Net cash used for investing activities(30,038)(20,870)
Cash flows from financing activities
Borrowings under credit agreement73,000 112,000
Repayments of credit agreement borrowings(90,500)(67,000)
Redemption of senior notes0 (522,500)
Proceeds from issuance of debt0 500,000
Contributions from general partner0 354
Contributions from noncontrolling interests6,332 7,304
Distributions to HEP unitholders(38,328)(68,519)
Distributions to noncontrolling interests(3,819)(3,000)
Payments on finance leases(958)(1,096)
Deferred financing costs0 (8,478)
Units withheld for tax withholding obligations(68)(147)
Net cash used by financing activities(54,341)(51,082)
Cash and cash equivalents
Increase (decrease) for the period(2,237)5,995
Beginning of period21,990 13,287
End of period19,753 19,282
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 18,674 $ 25,168

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) $ in ThousandsTotalCommon UnitsNoncontrolling Interests
Balance, beginning of period at Dec. 31, 2019 $ 487,758 $ 381,103 $ 106,655
Increase (Decrease) in Partners' Equity [Roll Forward]
Capital contribution - Cushing Connect7,304 7,304
Distributions to HEP unitholders(68,519)(68,519)
Distributions to noncontrolling interests(3,000)(3,000)
Amortization of restricted and performance units506 506
Class B unit accretion(835)(835)
Other208 208
Net income26,912 25,696 1,216
Balance, end of period at Mar. 31, 2020450,334 338,159 112,175
Balance, beginning of period at Dec. 31, 2020505,358 379,292 126,066
Increase (Decrease) in Partners' Equity [Roll Forward]
Capital contribution - Cushing Connect9,746 9,746
Distributions to HEP unitholders(38,328)(38,328)
Distributions to noncontrolling interests(3,819)(3,819)
Amortization of restricted and performance units683 683
Class B unit accretion(893)(893)
Other(68)(68)
Net income66,937 65,290 1,647
Balance, end of period at Mar. 31, 2021 $ 539,616 $ 405,976 $ 133,640

Description of Business and Pre

Description of Business and Presentation of Financial Statements3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Description of Business and Presentation of Financial StatementsDescription of Business and Presentation of Financial Statements Holly Energy Partners, L.P. (“HEP”), together with its consolidated subsidiaries, is a publicly held master limited partnership. As of March 31, 2021, HollyFrontier Corporation (“HFC”) and its subsidiaries own a 57% limited partner interest and the non-economic general partner interest in HEP. We commenced operations on July 13, 2004, upon the completion of our initial public offering. In these consolidated financial statements, the words “we,” “our,” “ours” and “us” refer to HEP unless the context otherwise indicates. We own and operate petroleum product and crude oil pipelines, terminal, tankage and loading rack facilities and refinery processing units that support refining and marketing operations of HFC and other refineries in the Mid-Continent, Southwest and Northwest regions of the United States. Additionally, we own a 75% interest in UNEV Pipeline, LLC (“UNEV”), a 50% interest in Osage Pipe Line Company, LLC (“Osage”), a 50% interest in Cheyenne Pipeline LLC, and a 50% interest in Cushing Connect Pipeline & Terminal LLC. On June 1, 2020, HFC announced plans to permanently cease petroleum refining operations at its Cheyenne Refinery (the “Cheyenne Refinery”) and to convert certain assets at that refinery to renewable diesel production. HFC subsequently began winding down petroleum refining operations at the Cheyenne Refinery on August 3, 2020. HEP and HFC finalized and executed new agreements for HEP’s Cheyenne assets on February 8, 2021, with the following terms, in each case effective January 1, 2021: (1) a ten-year lease with two five-year renewal option periods for HFC’s use of certain HEP tank and rack assets in the Cheyenne Refinery to facilitate renewable diesel production with an annual lease payment of approximately $5 million, (2) a five-year contango service fee arrangement that will utilize HEP tank assets inside the Cheyenne Refinery where HFC will pay a base tariff to HEP for available crude oil storage and HFC and HEP will split any profits generated on crude oil contango opportunities and (3) a $10 million one-time cash payment from HFC to HEP for the termination of the existing minimum volume commitment. We operate in two reportable segments, a Pipelines and Terminals segment and a Refinery Processing Unit segment. Disclosures around these segments are discussed in Note 15. We generate revenues by charging tariffs for transporting petroleum products and crude oil through our pipelines, by charging fees for terminalling and storing refined products and other hydrocarbons, providing other services at our storage tanks and terminals and by charging fees for processing hydrocarbon feedstocks through our refinery processing units. We do not take ownership of products that we transport, terminal, store or process, and therefore, we are not exposed directly to changes in commodity prices. The consolidated financial statements included herein have been prepared without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). The interim financial statements reflect all adjustments, which, in the opinion of management, are necessary for a fair presentation of our results for the interim periods. Such adjustments are considered to be of a normal recurring nature. Although certain notes and other information required by U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted, we believe that the disclosures in these consolidated financial statements are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020. Results of operations for interim periods are not necessarily indicative of the results of operations that will be realized for the year ending December 31, 2021. Principles of Consolidation and Common Control Transactions The consolidated financial statements include our accounts and those of subsidiaries and joint ventures that we control. All significant intercompany transactions and balances have been eliminated. Most of our acquisitions from HFC occurred while we were a consolidated variable interest entity (“VIE”) of HFC. Therefore, as an entity under common control with HFC, we recorded these acquisitions on our balance sheets at HFC's historical basis instead of our purchase price or fair value. Goodwill and Long-Lived Assets Goodwill represents the excess of our cost of an acquired business over the fair value of the assets acquired, less liabilities assumed. Goodwill is not amortized. We test goodwill at the reporting unit level for impairment annually and between annual tests if events or changes in circumstances indicate the carrying amount may exceed fair value. Our goodwill impairment testing first entails a comparison of our reporting unit fair values relative to their respective carrying values, including goodwill. If carrying value exceeds the estimated fair value for a reporting unit, we measure goodwill impairment as the excess of the carrying amount of the reporting unit over the estimated fair value of the reporting unit. Indicators of goodwill and long-lived asset impairment The changes in our new agreements with HFC related to our Cheyenne assets resulted in an increase in the net book value of our Cheyenne reporting unit due to sales-type lease accounting, which led us to determine indicators of potential goodwill impairment for our Cheyenne reporting unit were present. The estimated fair value of our Cheyenne reporting unit was derived using a combination of income and market approaches. The income approach reflects expected future cash flows based on anticipated gross margins, operating costs, and capital expenditures. The market approaches include both the guideline public company and guideline transaction methods. Both methods utilize pricing multiples derived from historical market transactions of other like-kind assets. These fair value measurements involve significant unobservable inputs (Level 3 inputs). See Note 5 for further discussion of Level 3 inputs. Our interim impairment testing of our Cheyenne reporting unit goodwill identified an impairment charge of $11.0 million, which was recorded in the three months ended March 31, 2021. We evaluate long-lived assets, including finite-lived intangible assets, for potential impairment by identifying whether indicators of impairment exist and, if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss, if any, to be recorded is equal to the amount by which a long-lived asset’s carrying value exceeds its fair value. Revenue Recognition Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. The majority of our contracts with customers meet the definition of a lease since (1) performance of the contracts is dependent on specified property, plant, or equipment and (2) it is unlikely that one or more parties other than the customer will take more than a minor amount of the output associated with the specified property, plant, or equipment. Prior to the adoption of the new lease standard (see below), we bifurcated the consideration received between lease and service revenue. The new lease standard allows the election of a practical expedient whereby a lessor does not have to separate non-lease (service) components from lease components under certain conditions. The majority of our contracts meet these conditions, and we have made this election for those contracts. Under this practical expedient, we treat the combined components as a single performance obligation in accordance with Accounting Standards Codification (“ASC”) 606, which largely codified ASU 2014-09, if the non-lease (service) component is the dominant component. If the lease component is the dominant component, we treat the combined components as a lease in accordance with ASC 842, which largely codified ASU 2016-02. Several of our contracts include incentive or reduced tariffs once a certain quarterly volume is met. Revenue from the variable element of these transactions is recognized based on the actual volumes shipped as it relates specifically to rendering the services during the applicable quarter. The majority of our long-term transportation contracts specify minimum volume requirements, whereby, we bill a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, we will recognize these deficiency payments in revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. We recognize these deficiency payments in revenue when we do not expect we will be required to satisfy these performance obligations in the future based on the pattern of rights projected to be exercised by the customer. During the three months ended March 31, 2021 and 2020, we recognized $3.8 million and $7.5 million, respectively, of these deficiency payments in revenue, of which $0.5 million and $0.7 million, respectively, related to deficiency payments billed in prior periods. We have other cost reimbursement provisions in our throughput / storage agreements providing that customers (including HFC) reimburse us for certain costs. Such reimbursements are recorded as revenue or deferred revenue depending on the nature of the cost. Deferred revenue is recognized over the remaining contractual term of the related throughput agreement. Leases We adopted ASC 842 effective January 1, 2019, and elected to adopt using the modified retrospective transition method and practical expedients, both of which are provided as options by the standard and further defined below. Lessee Accounting - At inception, we determine if an arrangement is or contains a lease. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our payment obligation under the leasing arrangement. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable. Operating leases are recorded in operating lease right-of-use assets and current and noncurrent operating lease liabilities on our consolidated balance sheet. Finance leases are included in properties and equipment, current finance lease liabilities and noncurrent finance lease liabilities on our consolidated balance sheet. When renewal options are defined in a lease, our lease term includes an option to extend the lease when it is reasonably certain we will exercise that option. Leases with a term of 12 months or less are not recorded on our balance sheet, and lease expense is accounted for on a straight-line basis. In addition, as a lessee, we separate non-lease components that are identifiable and exclude them from the determination of net present value of lease payment obligations. Lessor Accounting - Customer contracts that contain leases are generally classified as either operating leases, direct finance leases or sales-type leases. We consider inputs such as the lease term, fair value of the underlying asset and residual value of the underlying assets when assessing the classification. Accounting Pronouncements Adopted During the Periods Presented Credit Losses Measurement In June 2016, ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” was issued requiring measurement of all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. We adopted this standard effective January 1, 2020, and adoption of the standard did not have a material impact on our financial condition, results of operations or cash flows.

Investment in Joint Venture

Investment in Joint Venture3 Months Ended
Mar. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
Investment in Joint VentureInvestment in Joint Venture On October 2, 2019, HEP Cushing LLC (“HEP Cushing”), a wholly-owned subsidiary of HEP, and Plains Marketing, L.P. (“PMLP”), a wholly-owned subsidiary of Plains All American Pipeline, L.P. (“Plains”), formed a 50/50 joint venture, Cushing Connect Pipeline & Terminal LLC (the “Cushing Connect Joint Venture”), for (i) the development and construction of a new 160,000 barrel per day common carrier crude oil pipeline (the “Cushing Connect Pipeline”) that will connect the Cushing, Oklahoma crude oil hub to the Tulsa, Oklahoma refining complex owned by a subsidiary of HFC and (ii) the ownership and operation of 1.5 million barrels of crude oil storage in Cushing, Oklahoma (the “Cushing Connect JV Terminal”). The Cushing Connect JV Terminal went in service during the second quarter of 2020, and the Cushing Connect Pipeline is expected to be placed in service during the third quarter of 2021. Long-term commercial agreements have been entered into to support the Cushing Connect Joint Venture assets. The Cushing Connect Joint Venture contracted with an affiliate of HEP to manage the construction and operation of the Cushing Connect Pipeline and with an affiliate of Plains to manage the operation of the Cushing Connect JV Terminal. The total Cushing Connect Joint Venture investment will generally be shared equally among the partners, and HEP estimates its share of the cost of the Cushing Connect JV Terminal contributed by Plains and Cushing Connect Pipeline construction costs will be approximately $65 million to $70 million. However, we are solely responsible for any Cushing Connect Pipeline construction costs which exceed 10% of the budget. The Cushing Connect Joint Venture legal entities are variable interest entities ("VIEs") as defined under GAAP. A VIE is a legal entity if it has any one of the following characteristics: (i) the entity does not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support; (ii) the at risk equity holders, as a group, lack the characteristics of a controlling financial interest; or (iii) the entity is structured with non-substantive voting rights. The Cushing Connect Joint Venture legal entities do not have sufficient equity at risk to finance their activities without additional financial support. Since HEP is constructing and will operate the Cushing Connect Pipeline, HEP has more ability to direct the activities that most significantly impact the financial performance of the Cushing Connect Joint Venture and Cushing Connect Pipeline legal entities. Therefore, HEP consolidates those legal entities. We do not have the ability to direct the activities that most significantly impact the Cushing Connect JV Terminal legal entity, and therefore, we account for our interest in the Cushing Connect JV Terminal legal entity using the equity method of accounting. With the exception of the assets of HEP Cushing, creditors of the Cushing Connect Joint Venture legal entities have no recourse to our assets. Any recourse to HEP Cushing would be limited to the extent of HEP Cushing's assets, which other than its investment in Cushing Connect Joint Venture, are not significant. Furthermore, our creditors have no recourse to the assets of the Cushing Connect Joint Venture legal entities.

Revenues

Revenues3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
RevenuesRevenues Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. See Note 1 for further discussion of revenue recognition. Disaggregated revenues are as follows: Three Months Ended 2021 2020 (In thousands) Pipelines $ 66,505 $ 70,472 Terminals, tanks and loading racks 38,182 37,498 Refinery processing units 22,496 19,884 $ 127,183 $ 127,854 R evenues on our consolidated statem ents of income were composed of the following lease and service revenues: Three Months Ended 2021 2020 (In thousands) Lease revenues $ 87,944 $ 93,185 Service revenues 39,239 34,669 $ 127,183 $ 127,854 A contract liability exists when an entity is obligated to perform future services for a customer for which the entity has received consideration. Since HEP may be required to perform future services for these deficiency payments received, the deferred revenues on our balance sheets were considered contract liabilities. A contract asset exists when an entity has a right to consideration in exchange for goods or services transferred to a customer. Our consolidated balance sheets included the contract assets and liabilities in the table below: March 31, December 31, (In thousands) Contract assets $ 6,425 $ 6,306 Contract liabilities $ (500) $ (500) The contract assets and liabilities include both lease and service components. During the three months ended March 31, 2021, we recognized $0.5 million of revenue that was previously included in contract liability as of December 31, 2020. During the three months ended March 31, 2021, we also recognized $0.1 million of revenue included in contract assets. As of March 31, 2021, we expect to recognize $1.9 billion in revenue related to our unfulfilled performance obligations under the terms of our long-term throughput agreements and leases expiring in 2021 through 2036. These agreements generally provide for changes in the minimum revenue guarantees annually for increases or decreases in the Producer Price Index (“PPI”) or Federal Energy Regulatory Commission (“FERC”) index, with certain contracts having provisions that limit the level of the rate increases or decreases. We expect to recognize revenue for these unfulfilled performance obligations as shown in the table below (amounts shown in table include both service and lease revenues): Years Ending December 31, (In millions) Remainder of 2021 $ 253 2022 310 2023 274 2024 236 2025 171 2026 156 Thereafter 479 Total $ 1,879 Payment terms under our contracts with customers are consistent with industry norms and are typically payable within 10 to 30 days of the date of invoice.

Leases

Leases3 Months Ended
Mar. 31, 2021
Leases [Abstract]
LeasesLeases We adopted ASC 842 effective January 1, 2019, and elected to adopt using the modified retrospective transition method and practical expedients, both of which are provided as options by the standard and further defined in Note 1. See Note 1 for further discussion of lease accounting. Lessee Accounting As a lessee, we lease land, buildings, pipelines, transportation and other equipment to support our operations. These leases can be categorized into operating and finance leases. Our leases have remaining terms of less than 1 year to 24 years, some of which include options to extend the leases for up to 10 years. Finance Lease Obligations We have finance lease obligations related to vehicle leases with initial terms of 33 to 48 months. The total cost of assets under finance leases was $6.1 million and $6.4 million as of March 31, 2021 and December 31, 2020, respectively, with accumulated depreciation of $3.1 million and $3.4 million as of March 31, 2021 and December 31, 2020, respectively. We include depreciation of finance leases in depreciation and amortization in our consolidated statements of income. In addition, we have a finance lease obligation related to a pipeline lease with an initial term of 10 years with one remaining subsequent renewal option for an additional 10 years. Supplemental balance sheet information related to leases was as follows (in thousands, except for lease term and discount rate): March 31, December 31, 2020 Operating leases: Operating lease right-of-use assets, net $ 2,912 $ 2,979 Current operating lease liabilities 882 875 Noncurrent operating lease liabilities 2,404 2,476 Total operating lease liabilities $ 3,286 $ 3,351 Finance leases: Properties and equipment $ 6,053 $ 6,410 Accumulated amortization (3,089) (3,390) Properties and equipment, net $ 2,964 $ 3,020 Current finance lease liabilities $ 3,668 $ 3,713 Noncurrent finance lease liabilities 67,309 68,047 Total finance lease liabilities $ 70,977 $ 71,760 Weighted average remaining lease term (in years) Operating leases 5.7 5.9 Finance leases 15.7 15.9 Weighted average discount rate Operating leases 4.9% 4.8% Finance leases 5.6% 5.6% Supplemental cash flow and other information related to leases were as follows: Three Months Ended 2021 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows on operating leases $ 312 $ 282 Operating cash flows on finance leases $ 1,058 $ 1,077 Financing cash flows on finance leases $ 958 $ 1,096 Maturities of lease liabilities were as follows: March 31, 2021 Operating Finance (In thousands) 2021 $ 747 $ 5,537 2022 688 7,332 2023 607 7,375 2024 494 6,918 2025 426 6,456 2026 and thereafter 750 73,888 Total lease payments 3,712 107,506 Less: Imputed interest (426) (36,529) Total lease obligations 3,286 70,977 Less: Current lease liabilities (882) (3,668) Noncurrent lease liabilities $ 2,404 $ 67,309 The components of lease expense were as follows: Three Months Ended 2021 2020 (In thousands) Operating lease costs $ 298 $ 273 Finance lease costs Amortization of assets 212 242 Interest on lease liabilities 1,006 1,037 Variable lease cost 66 49 Total net lease cost $ 1,582 $ 1,601 Lessor Accounting As discussed in Note 1, the majority of our contracts with customers meet the definition of a lease. Substantially all of the assets supporting contracts meeting the definition of a lease have long useful lives, and we believe these assets will continue to have value when the current agreements expire due to our risk management strategy for protecting the residual fair value of the underlying assets by performing ongoing maintenance during the lease term. HFC generally has the option to purchase assets located within HFC refinery boundaries, including refinery tankage, truck racks and refinery processing units, at fair market value when the related agreements expire. During the three months ended March 31, 2021, we entered into new agreements and modified other agreements with HFC related to our Cheyenne assets, Tulsa West lube racks, and various crude tanks. These agreements met the criteria of sales-type leases since the underlying assets are not expected to have an alternative use at the end of the lease terms to anyone other than HFC. Under sales-type lease accounting, at the commencement date, the lessor recognizes a net investment in the lease, based on the estimated fair value of the underlying leased assets at contract inception, and derecognizes the underlying assets with the difference recorded as selling profit or loss arising from the lease. Therefore, we recognized a gain on sales-type leases during the three months ended March 31, 2021 composed of the following: (In thousands) Net investment in leases $ 41,246 Properties and equipment, net (23,155) Deferred revenue 6,559 Gain on sales-type leases $ 24,650 This sales-type lease transaction, including the related gain, was a non-cash transaction. Lease income recognized was as follows: Three Months Ended 2021 2020 (In thousands) Operating lease revenues $ 85,892 $ 91,388 Direct financing lease interest income 524 524 Gain on sales-type leases 24,650 — Sales-type lease interest income 6,025 1,655 Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable 2,052 1,797 For our sales-type leases, we included customer obligations related to minimum volume requirements in guaranteed minimum lease payments. Portions of our minimum guaranteed pipeline tariffs for assets subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. We recognized any billings for throughput volumes in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues. Annual minimum undiscounted lease payments under our leases were as follows as of March 31, 2021: Operating Finance Sales-type Years Ending December 31, (In thousands) Remainder of 2021 $ 212,736 $ 1,598 $ 20,900 2022 282,394 2,145 27,867 2023 251,943 2,162 23,961 2024 215,839 2,179 20,732 2025 152,925 2,196 17,305 2026 and thereafter 553,945 38,591 133,315 Total lease receipt payments $ 1,669,782 $ 48,871 $ 244,080 Less: Imputed interest (32,436) (189,424) 16,435 54,656 Unguaranteed residual assets at end of leases — 139,121 Net investment in leases $ 16,435 $ 193,777 Net investments in leases recorded on our balance sheet were composed of the following: March 31, 2021 December 31, 2020 Sales-type Leases Direct Financing Leases Sales-type Leases Direct Financing Leases (In thousands) (In thousands) Lease receivables (1) $ 122,514 $ 16,435 $ 88,922 $ 16,452 Unguaranteed residual assets 71,263 — 64,551 — Net investment in leases $ 193,777 $ 16,435 $ 153,473 $ 16,452 (1) Current portion of lease receivables included in prepaid and other current assets on the balance sheet.
LeasesLeases We adopted ASC 842 effective January 1, 2019, and elected to adopt using the modified retrospective transition method and practical expedients, both of which are provided as options by the standard and further defined in Note 1. See Note 1 for further discussion of lease accounting. Lessee Accounting As a lessee, we lease land, buildings, pipelines, transportation and other equipment to support our operations. These leases can be categorized into operating and finance leases. Our leases have remaining terms of less than 1 year to 24 years, some of which include options to extend the leases for up to 10 years. Finance Lease Obligations We have finance lease obligations related to vehicle leases with initial terms of 33 to 48 months. The total cost of assets under finance leases was $6.1 million and $6.4 million as of March 31, 2021 and December 31, 2020, respectively, with accumulated depreciation of $3.1 million and $3.4 million as of March 31, 2021 and December 31, 2020, respectively. We include depreciation of finance leases in depreciation and amortization in our consolidated statements of income. In addition, we have a finance lease obligation related to a pipeline lease with an initial term of 10 years with one remaining subsequent renewal option for an additional 10 years. Supplemental balance sheet information related to leases was as follows (in thousands, except for lease term and discount rate): March 31, December 31, 2020 Operating leases: Operating lease right-of-use assets, net $ 2,912 $ 2,979 Current operating lease liabilities 882 875 Noncurrent operating lease liabilities 2,404 2,476 Total operating lease liabilities $ 3,286 $ 3,351 Finance leases: Properties and equipment $ 6,053 $ 6,410 Accumulated amortization (3,089) (3,390) Properties and equipment, net $ 2,964 $ 3,020 Current finance lease liabilities $ 3,668 $ 3,713 Noncurrent finance lease liabilities 67,309 68,047 Total finance lease liabilities $ 70,977 $ 71,760 Weighted average remaining lease term (in years) Operating leases 5.7 5.9 Finance leases 15.7 15.9 Weighted average discount rate Operating leases 4.9% 4.8% Finance leases 5.6% 5.6% Supplemental cash flow and other information related to leases were as follows: Three Months Ended 2021 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows on operating leases $ 312 $ 282 Operating cash flows on finance leases $ 1,058 $ 1,077 Financing cash flows on finance leases $ 958 $ 1,096 Maturities of lease liabilities were as follows: March 31, 2021 Operating Finance (In thousands) 2021 $ 747 $ 5,537 2022 688 7,332 2023 607 7,375 2024 494 6,918 2025 426 6,456 2026 and thereafter 750 73,888 Total lease payments 3,712 107,506 Less: Imputed interest (426) (36,529) Total lease obligations 3,286 70,977 Less: Current lease liabilities (882) (3,668) Noncurrent lease liabilities $ 2,404 $ 67,309 The components of lease expense were as follows: Three Months Ended 2021 2020 (In thousands) Operating lease costs $ 298 $ 273 Finance lease costs Amortization of assets 212 242 Interest on lease liabilities 1,006 1,037 Variable lease cost 66 49 Total net lease cost $ 1,582 $ 1,601 Lessor Accounting As discussed in Note 1, the majority of our contracts with customers meet the definition of a lease. Substantially all of the assets supporting contracts meeting the definition of a lease have long useful lives, and we believe these assets will continue to have value when the current agreements expire due to our risk management strategy for protecting the residual fair value of the underlying assets by performing ongoing maintenance during the lease term. HFC generally has the option to purchase assets located within HFC refinery boundaries, including refinery tankage, truck racks and refinery processing units, at fair market value when the related agreements expire. During the three months ended March 31, 2021, we entered into new agreements and modified other agreements with HFC related to our Cheyenne assets, Tulsa West lube racks, and various crude tanks. These agreements met the criteria of sales-type leases since the underlying assets are not expected to have an alternative use at the end of the lease terms to anyone other than HFC. Under sales-type lease accounting, at the commencement date, the lessor recognizes a net investment in the lease, based on the estimated fair value of the underlying leased assets at contract inception, and derecognizes the underlying assets with the difference recorded as selling profit or loss arising from the lease. Therefore, we recognized a gain on sales-type leases during the three months ended March 31, 2021 composed of the following: (In thousands) Net investment in leases $ 41,246 Properties and equipment, net (23,155) Deferred revenue 6,559 Gain on sales-type leases $ 24,650 This sales-type lease transaction, including the related gain, was a non-cash transaction. Lease income recognized was as follows: Three Months Ended 2021 2020 (In thousands) Operating lease revenues $ 85,892 $ 91,388 Direct financing lease interest income 524 524 Gain on sales-type leases 24,650 — Sales-type lease interest income 6,025 1,655 Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable 2,052 1,797 For our sales-type leases, we included customer obligations related to minimum volume requirements in guaranteed minimum lease payments. Portions of our minimum guaranteed pipeline tariffs for assets subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. We recognized any billings for throughput volumes in excess of minimum volume requirements as variable lease payments, and these variable lease payments were recorded in lease revenues. Annual minimum undiscounted lease payments under our leases were as follows as of March 31, 2021: Operating Finance Sales-type Years Ending December 31, (In thousands) Remainder of 2021 $ 212,736 $ 1,598 $ 20,900 2022 282,394 2,145 27,867 2023 251,943 2,162 23,961 2024 215,839 2,179 20,732 2025 152,925 2,196 17,305 2026 and thereafter 553,945 38,591 133,315 Total lease receipt payments $ 1,669,782 $ 48,871 $ 244,080 Less: Imputed interest (32,436) (189,424) 16,435 54,656 Unguaranteed residual assets at end of leases — 139,121 Net investment in leases $ 16,435 $ 193,777 Net investments in leases recorded on our balance sheet were composed of the following: March 31, 2021 December 31, 2020 Sales-type Leases Direct Financing Leases Sales-type Leases Direct Financing Leases (In thousands) (In thousands) Lease receivables (1) $ 122,514 $ 16,435 $ 88,922 $ 16,452 Unguaranteed residual assets 71,263 — 64,551 — Net investment in leases $ 193,777 $ 16,435 $ 153,473 $ 16,452 (1) Current portion of lease receivables included in prepaid and other current assets on the balance sheet.

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value MeasurementsFair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability) including assumptions about risk. GAAP categorizes inputs used in fair value measurements into three broad levels as follows: • (Level 1) Quoted prices in active markets for identical assets or liabilities. • (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. • (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs. Financial Instruments Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. Debt consists of outstanding principal under our revolving credit agreement (which approximates fair value as interest rates are reset frequently at current interest rates) and our fixed interest rate senior notes. The carrying amounts and estimated fair values of our senior notes were as follows: March 31, 2021 December 31, 2020 Financial Instrument Fair Value Input Level Carrying Fair Value Carrying Fair Value (In thousands) Liabilities: 5% Senior Notes Level 2 492,335 504,960 492,103 506,540 Level 2 Financial Instruments Our senior notes are measured at fair value using Level 2 inputs. The fair value of the senior notes is based on market values provided by a third-party bank, which were derived using market quotes for similar type debt instruments. See Note 9 for additional information. Non-Recurring Fair Value Measurements For gains on sales-type leases recognized during three months ended March 31, 2021, the estimated fair value of the underlying leased assets at contract inception and the present value of the estimated unguaranteed residual asset at the end of the lease term are used in determining the net investment in leases and related gain on sales-type leases recorded. The asset valuation estimates include Level 3 inputs based on a replacement cost valuation method. During the three months ended March 31, 2021, we recognized goodwill impairment based on fair value measurements utilized during our goodwill testing (see Note 1). The fair value measurements were based on a combination of valuation methods including discounted cash flows, the guideline public company and guideline transaction methods and obsolescence adjusted replacement costs, all of which are Level 3 inputs.

Properties and Equipment

Properties and Equipment3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Properties and EquipmentProperties and Equipment The carrying amounts of our properties and equipment were as follows: March 31, December 31, (In thousands) Pipelines, terminals and tankage 1 $ 1,554,870 $ 1,575,815 Refinery assets 348,882 348,882 Land and right of way 87,076 87,076 Construction in progress 79,762 58,467 Other 1 45,471 46,201 2,116,061 2,116,441 Less accumulated depreciation (683,262) (665,756) $ 1,432,799 $ 1,450,685 (1) Prior period balances have been reclassified to be comparative to current period.

Intangible Assets

Intangible Assets3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible AssetsIntangible Assets Intangible assets include transportation agreements and customer relationships that represent a portion of the total purchase price of certain assets acquired from Delek in 2005, from HFC in 2008 prior to HEP becoming a consolidated VIE of HFC, from Plains in 2017, and from other minor acquisitions in 2018. The carrying amounts of our intangible assets were as follows: Useful Life March 31, December 31, (In thousands) Delek transportation agreement 30 years $ 59,933 $ 59,933 HFC transportation agreement 10-15 years 75,131 75,131 Customer relationships 10 years 69,683 69,683 Other 20 years 50 50 204,797 204,797 Less accumulated amortization (120,984) (117,482) $ 83,813 $ 87,315 Amortization expense was $3.5 million for the three months ended March 31, 2021 and 2020, respectively. We estimate amortization expense to be $14.0 million for 2022, $9.9 million in 2023, and $9.1 million for 2024 through 2026. We have additional transportation agreements with HFC resulting from historical transactions consisting of pipeline, terminal and tankage assets contributed to us or acquired from HFC. These transactions occurred while we were a consolidated variable interest entity of HFC; therefore, our basis in these agreements is zero and does not reflect a step-up in basis to fair value.

Employees, Retirement and Incen

Employees, Retirement and Incentive Plans3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Employees, Retirement and Incentive PlansEmployees, Retirement and Incentive Plans Direct support for our operations is provided by Holly Logistic Services, L.L.C. (“HLS”), an HFC subsidiary, which utilizes personnel employed by HFC who are dedicated to performing services for us. Their costs, including salaries, bonuses, payroll taxes, benefits and other direct costs, are charged to us monthly in accordance with an omnibus agreement that we have with HFC (the “Omnibus Agreement”). These employees participate in the retirement and benefit plans of HFC. Our share of retirement and benefit plan costs was $2.2 million for each of the three months ended March 31, 2021 and 2020. Under HLS’s secondment agreement with HFC (the “Secondment Agreement”), certain employees of HFC are seconded to HLS to provide operational and maintenance services for certain of our processing, refining, pipeline and tankage assets, and HLS reimburses HFC for its prorated portion of the wages, benefits, and other costs related to these employees. We have a Long-Term Incentive Plan for employees and non-employee directors who perform services for us. The Long-Term Incentive Plan consists of four components: restricted or phantom units, performance units, unit options and unit appreciation rights. Our accounting policy for the recognition of compensation expense for awards with pro-rata vesting (a significant proportion of our awards) is to expense the costs ratably over the vesting periods. As of March 31, 2021, we had two types of incentive-based awards outstanding, which are described below. The compensation cost charged against income was $0.7 million and $0.5 million for the three months ended March 31, 2021 and 2020, respectively. We currently purchase units in the open market instead of issuing new units for settlement of all unit awards under our Long-Term Incentive Plan. As of March 31, 2021, 2,500,000 units were authorized to be granted under our Long-Term Incentive Plan, of which 855,049 were available to be granted, assuming no forfeitures of the unvested units and full achievement of goals for the unvested performance units. Phantom Units Under our Long-Term Incentive Plan, we grant phantom units to our non-employee directors and selected employees who perform services for us, with most awards vesting over a period of one The fair value of each phantom unit award is measured at the market price as of the date of grant and is amortized on a straight-line basis over the requisite service period for each separately vesting portion of the award. A summary of phantom unit activity and changes during the three months ended March 31, 2021, is presented below: Phantom Units Units Weighted Average Grant-Date Fair Value Outstanding at January 1, 2021 (nonvested) 295,992 $ 14.48 Forfeited (870) 16.17 Outstanding at March 31, 2021 (nonvested) 295,122 14.48 No phantom units vested and transferred to recipients during the three months ended March 31, 2021 . As of March 31, 2021, $2.6 million of total unrecognized compensation expense related to unvested phantom unit grants is expected to be recognized over a weighted-average period of 1.5 years. Performance Units Under our Long-Term Incentive Plan, we grant performance units to selected officers who perform services for us. Performance units granted are payable in common units at the end of a three-year performance period based upon meeting certain criteria over the performance period. Under the terms of our performance unit grants, some awards are subject to the growth in our distributable cash flow per common unit over the performance period while other awards are subject to "financial performance" and "market performance." Financial performance is based on meeting certain earnings before interest, taxes, depreciation and amortization ("EBITDA") targets, while market performance is based on the relative standing of total unitholder return achieved by HEP compared to peer group companies. The number of units ultimately issued under these awards can range from 0% to 200%. We did not grant any performance units during the three months ended March 31, 2021. Although common units are not transferred to the recipients until the performance units vest, the recipients have distribution rights with respect to the target number of performance units subject to the award from the date of grant at the same rate as distributions paid on our common units. A summary of performance unit activity and changes for the three months ended March 31, 2021, is presented below: Performance Units Units Outstanding at January 1, 2021 (nonvested) 77,472 Vesting and transfer of common units to recipients (10,881) Outstanding at March 31, 2021 (nonvested) 66,591 The grant date fair value of performance units vested and transferred to recipients during both of the three months ended March 31, 2021 and 2020 was $0.4 million . Based on the weighted-average fair value of performance units outstanding at March 31, 2021, of $1.2 million, there was $0.7 million of total unrecognized compensation expense related to nonvested performance units, which is expected to be recognized over a weighted-average period of 2.0 years. During the three months ended March 31, 2021, we did not purchase any of our common units in the open market for the issuance and settlement of unit awards under our Long-Term Incentive Plan.

Debt

Debt3 Months Ended
Mar. 31, 2021
Debt Instruments [Abstract]
DebtDebt Credit Agreement At March 31, 2021, we had a $1.4 billion senior secured revolving credit facility (the “Credit Agreement”) maturing in July 2022. On April 30, 2021, the Credit Agreement was amended (the “Amended Credit Agreement”), decreasing the size of the facility from $1.4 billion to $1.2 billion and extending the maturity date to July 27, 2025. The Amended Credit Agreement is available to fund capital expenditures, investments, acquisitions, distribution payments, working capital and for general partnership purposes. The Amended Credit Agreement is also available to fund letters of credit up to a $50 million sub-limit and continues to provide for an accordion feature that allows us to increase commitments under the Amended Credit Agreement up to a maximum amount of $1.7 billion. Our obligations under the Amended Credit Agreement are collateralized by substantially all of our assets, and indebtedness under the Amended Credit Agreement is guaranteed by our material, wholly-owned subsidiaries. The Amended Credit Agreement requires us to maintain compliance with certain financial covenants consisting of total leverage, senior secured leverage, and interest coverage. It also limits or restricts our ability to engage in certain activities. If, at any time prior to the maturity of the Amended Credit Agreement, HEP obtains two investment grade credit ratings, the Amended Credit Agreement will become unsecured and many of the covenants, limitations, and restrictions will be eliminated. We may prepay all loans at any time without penalty, except for tranche breakage costs. If an event of default exists under the Amended Credit Agreement, the lenders will be able to accelerate the maturity of all loans outstanding and exercise other rights and remedies. We were in compliance with the covenants under the Credit Agreement as of March 31, 2021. Senior Notes On February 4, 2020, we closed a private placement of $500 million in aggregate principal amount of 5% senior unsecured notes due in 2028 (the "5% Senior Notes"). On February 5, 2020, we redeemed the existing $500 million 6% Senior Notes at a redemption cost of $522.5 million, at which time we recognized a $25.9 million early extinguishment loss consisting of a $22.5 million debt redemption premium and unamortized financing costs of $3.4 million. We funded the $522.5 million redemption with net proceeds from the issuance of our 5% Senior Notes and borrowings under our Credit Agreement. The 5% Senior Notes are unsecured and impose certain restrictive covenants, including limitations on our ability to incur additional indebtedness, make investments, sell assets, incur certain liens, pay distributions, enter into transactions with affiliates, and enter into mergers. We were in compliance with the restrictive covenants for the 5% Senior Notes as of March 31, 2021. At any time when the 5% Senior Notes are rated investment grade by either Moody’s or Standard & Poor’s and no default or event of default exists, we will not be subject to many of the foregoing covenants. Additionally, we have certain redemption rights at varying premiums over face value under the 5% Senior Notes. Indebtedness under the 5% Senior Notes is guaranteed by all of our existing wholly-owned subsidiaries (other than Holly Energy Finance Corp. and certain immaterial subsidiaries). Long-term Debt The carrying amounts of our long-term debt were as follows: March 31, December 31, (In thousands) Credit Agreement Amount outstanding $ 896,000 $ 913,500 5% Senior Notes Principal 500,000 500,000 Unamortized premium and debt issuance costs (7,665) (7,897) 492,335 492,103 Total long-term debt $ 1,388,335 $ 1,405,603

Related Party Transactions

Related Party Transactions3 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party TransactionsRelated Party Transactions We serve HFC’s refineries under long-term pipeline, terminal and tankage throughput agreements, and refinery processing unit tolling agreements expiring from 2021 to 2036, and revenues from these agreements accounted for 80% of our total revenues for the three months ended March 31, 2021. Under these agreements, HFC agrees to transport, store and process throughput volumes of refined product, crude oil and feedstocks on our pipelines, terminals, tankage, loading rack facilities and refinery processing units that result in minimum annual payments to us. These minimum annual payments or revenues are subject to annual rate adjustments on July 1st each year generally based on increases or decreases in PPI or the FERC index. As of March 31, 2021, these agreements with HFC require minimum annualized payments to us of $338 million. If HFC fails to meet its minimum volume commitments under the agreements in any quarter, it will be required to pay us the amount of any shortfall in cash by the last day of the month following the end of the quarter. Under certain of these agreements, a shortfall payment may be applied as a credit in the following four quarters after its minimum obligations are met. Under certain provisions of the Omnibus Agreement, we pay HFC an annual administrative fee (currently $2.6 million) for the provision by HFC or its affiliates of various general and administrative services to us. This fee does not include the salaries of personnel employed by HFC who perform services for us on behalf of HLS or the cost of their employee benefits, which are charged to us separately by HFC. Also, we reimburse HFC and its affiliates for direct expenses they incur on our behalf. Related party transactions with HFC were as follows: • Revenues received from HFC were $101.9 million and $101.4 million for the three months ended March 31, 2021 and 2020, respectively. • HFC charged us general and administrative services under the Omnibus Agreement of $0.7 million for both the three months ended March 31, 2021 and 2020. • We reimbursed HFC for costs of employees supporting our operations of $14.4 million and $14.1 million for the three months ended March 31, 2021 and 2020, respectively. • HFC reimbursed us $3.1 million for both the three months ended March 31, 2021 and 2020 for expense and capital projects.. • We distributed $20.9 million and $37.6 million in the three months ended March 31, 2021 and 2020, respectively, to HFC as regular distributions on its common units. • Accounts receivable from HFC were $45.5 million and $48.0 million at March 31, 2021, and December 31, 2020, respectively. • Accounts payable to HFC were $10.2 million and $18.1 million at March 31, 2021, and December 31, 2020, respectively. • Deferred revenue in the consolidated balance sheets included $0.4 million for both March 31, 2021 and December 31, 2020, relating to certain shortfall billings to HFC. • We received direct financing lease payments from HFC for use of our Artesia and Tulsa rail yards of $0.5 million for both of the three months ended March 31, 2021 and 2020. • We recorded a gain on sales-type leases with HFC of $24.7 million for the three months ended March 31, 2021, and we received sales-type lease payments of $6.2 million and $2.4 million from HFC that were not recorded in revenues for the three months ended March 31, 2021 and 2020, respectively.

Partners' Equity, Income Alloca

Partners' Equity, Income Allocations and Cash Distributions3 Months Ended
Mar. 31, 2021
Partners' Capital [Abstract]
Partners' Equity, Income Allocations and Cash DistributionsPartners’ Equity, Income Allocations and Cash Distributions As of March 31, 2021, HFC held 59,630,030 of our common units, constituting a 57% limited partner interest in us, and held the non-economic general partner interest. Continuous Offering Program We have a continuous offering program under which we may issue and sell common units from time to time, representing limited partner interests, up to an aggregate gross sales amount of $200 million. As of March 31, 2021, HEP has issued 2,413,153 units under this program, providing $82.3 million in gross proceeds. Allocations of Net Income Net income attributable to HEP is allocated to the partners based on their weighted-average ownership percentage during the period. Cash Distributions On April 22, 2021, we announced our cash distribution for the first quarter of 2021 of $0.35 per unit. The distribution is payable on all common units and will be paid May 13, 2021, to all unitholders of record on May 3, 2021. Our regular quarterly cash distribution to the limited partners will be $37.0 million for the three months ended March 31, 2021 and was $34.5 million for the three months ended March 31, 2020. Our distributions are declared subsequent to quarter end; therefore, these amounts do not reflect distributions paid during the respective period.

Net Income Per Limited Partner

Net Income Per Limited Partner Unit3 Months Ended
Mar. 31, 2021
Net Income per Limited Partner Unit [Abstract]
Net Income Per Limited Partner UnitNet Income Per Limited Partner Unit Basic net income per unit applicable to the limited partners is calculated as net income attributable to the partners divided by the weighted average limited partners’ units outstanding. Diluted net income per unit assumes, when dilutive, the issuance of the net incremental units from phantom units and performance units. To the extent net income attributable to the partners exceeds or is less than cash distributions, this difference is allocated to the partners based on their weighted-average ownership percentage during the period, after consideration of any priority allocations of earnings. Our dilutive securities are immaterial for all periods presented. Net income per limited partner unit is computed as follows: Three Months Ended 2021 2020 (In thousands, except per unit data) Net income attributable to the partners $ 64,397 $ 24,861 Less: Participating securities’ share in earnings (225) — Net income attributable to common units 64,172 24,861 Weighted average limited partners' units outstanding 105,440 105,440 Limited partners' per unit interest in earnings - basic and diluted $ 0.61 $ 0.24

Environmental

Environmental3 Months Ended
Mar. 31, 2021
Accrual for Environmental Loss Contingencies [Abstract]
EnvironmentalEnvironmental We expensed $33 thousand and $0.2 million for the three months ended March 31, 2021 and 2020, respectively for environmental remediation obligations. The accrued environmental liability, net of expected recoveries from indemnifying parties, reflected in our consolidated balance sheets was $4.4 million and $4.5 million at March 31, 2021 and December 31, 2020, respectively, of which $2.3 million and $2.5 million, was classified as other long-term liabilities at March 31, 2021 and December 31, 2020. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time. Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HFC, HFC has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HFC and occurring or existing prior to the date of such transfers. Our consolidated balance sheets included additional accrued environmental liabilities of $0.5 million for HFC indemnified liabilities as of both March 31, 2021 and December 31, 2020, and other assets included equal and offsetting balances representing amounts due from HFC related to indemnifications for environmental remediation liabilities.

Contingencies

Contingencies3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
ContingenciesContingenciesWe are a party to various legal and regulatory proceedings, none of which we believe will have a material adverse impact on our financial condition, results of operations or cash flows.

Segment Information

Segment Information3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Segment InformationSegment Information Although financial information is reviewed by our chief operating decision makers from a variety of perspectives, they view the business in two reportable operating segments: pipelines and terminals, and refinery processing units. These operating segments adhere to the accounting polices used for our consolidated financial statements. Pipelines and terminals have been aggregated as one reportable segment as both pipeline and terminals (1) have similar economic characteristics, (2) similarly provide logistics services of transportation and storage of petroleum products, (3) similarly support the petroleum refining business, including distribution of its products, (4) have principally the same customers and (5) are subject to similar regulatory requirements. We evaluate the performance of each segment based on its respective operating income. Certain general and administrative expenses and interest and financing costs are excluded from segment operating income as they are not directly attributable to a specific reportable segment. Identifiable assets are those used by the segment, whereas other assets are principally equity method investments, cash, deposits and other assets that are not associated with a specific reportable segment. Three Months Ended 2021 2020 (In thousands) Revenues: Pipelines and terminals - affiliate $ 79,430 $ 81,544 Pipelines and terminals - third-party 25,257 26,426 Refinery processing units - affiliate 22,496 19,884 Total segment revenues $ 127,183 $ 127,854 Segment operating income: Pipelines and terminals (1) $ 41,484 $ 58,903 Refinery processing units 8,235 9,992 Total segment operating income 49,719 68,895 Unallocated general and administrative expenses (2,968) (2,702) Interest and financing costs, net (6,692) (15,549) Loss on early extinguishment of debt — (25,915) Equity in earnings of equity method investments 1,763 1,714 Gain on sales-type leases 24,650 — Gain (loss) on sale of assets and other 502 506 Income before income taxes $ 66,974 $ 26,949 Capital Expenditures: Pipelines and terminals $ 33,218 $ 18,618 Refinery processing units — 324 Total capital expenditures $ 33,218 $ 18,942 March 31, 2021 December 31, 2020 (In thousands) Identifiable assets: Pipelines and terminals (2) $ 1,739,414 $ 1,729,547 Refinery processing units 300,363 305,090 Other 130,749 132,928 Total identifiable assets $ 2,170,526 $ 2,167,565 (1) Pipelines and terminals segment operating income includes goodwill impairment charg e of $11.0 million for the three months ended March 31, 2021. (2) Includes goodwill of $223.7 million as of March 31, 2021 and $234.7 million as of December 31, 2020.

Supplemental Guarantor _ Non-Gu

Supplemental Guarantor / Non-Guarantor Financial Information3 Months Ended
Mar. 31, 2021
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]
Supplemental Guarantor / Non-Guarantor Financial InformationSupplemental Guarantor/Non-Guarantor Financial Information Obligations of HEP (“Parent”) under the 5% Senior Notes have been jointly and severally guaranteed by each of its direct and indirect 100% owned subsidiaries, other than Holly Energy Finance Corp. and certain immaterial subsidiaries (“Guarantor Subsidiaries”). These guarantees are full and unconditional, subject to certain customary release provisions. These circumstances include (i) when a Guarantor Subsidiary is sold or sells all or substantially all of its assets, (ii) when a Guarantor Subsidiary is declared “unrestricted” for covenant purposes, (iii) when a Guarantor Subsidiary’s guarantee of other indebtedness is terminated or released and (iv) when the requirements for legal defeasance or covenant defeasance or to discharge the senior notes have been satisfied. The following financial information presents condensed consolidating balance sheets, statements of income, and statements of cash flows of the Parent, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries. The information has been presented as if the Parent accounted for its ownership in the Guarantor Subsidiaries, and the Guarantor Restricted Subsidiaries accounted for the ownership of the Non-Guarantor Non-Restricted Subsidiaries, using the equity method of accounting. Condensed Consolidating Balance Sheet March 31, 2021 Parent Guarantor Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2,125 $ (838) $ 18,466 $ — $ 19,753 Accounts receivable — 54,301 8,919 (302) 62,918 Prepaid and other current assets 501 8,252 749 — 9,502 Total current assets 2,626 61,715 28,134 (302) 92,173 Properties and equipment, net — 1,054,969 377,830 — 1,432,799 Operating lease right-of-use assets — 2,773 139 — 2,912 Net investment in leases — 206,124 — — 206,124 Investment in subsidiaries 1,793,064 290,948 — (2,084,012) — Intangible assets, net — 83,813 — — 83,813 Goodwill — 223,650 — — 223,650 Equity method investments — 79,301 38,964 — 118,265 Other assets 3,671 7,119 — — 10,790 Total assets $ 1,799,361 $ 2,010,412 $ 445,067 $ (2,084,314) $ 2,170,526 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 22,978 $ 17,683 $ (302) $ 40,359 Accrued interest 4,661 — — — 4,661 Deferred revenue — 13,589 500 — 14,089 Accrued property taxes — 3,488 1,762 — 5,250 Current operating lease liabilities — 810 72 — 882 Current finance lease liabilities — 3,668 — — 3,668 Other current liabilities 129 2,848 12 — 2,989 Total current liabilities 4,790 47,381 20,029 (302) 71,898 Long-term debt 1,388,335 — — — 1,388,335 Noncurrent operating lease liabilities — 2,404 — — 2,404 Noncurrent finance lease liabilities — 67,309 — — 67,309 Other long-term liabilities 260 11,197 450 — 11,907 Deferred revenue — 35,314 — — 35,314 Class B unit — 53,743 — — 53,743 Equity - partners 405,976 1,793,064 290,948 (2,084,012) 405,976 Equity - noncontrolling interests — — 133,640 — 133,640 Total liabilities and equity $ 1,799,361 $ 2,010,412 $ 445,067 $ (2,084,314) $ 2,170,526 Condensed Consolidating Balance Sheet December 31, 2020 Parent Guarantor Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 1,627 $ (987) $ 21,350 $ — $ 21,990 Accounts receivable — 56,522 6,308 (315) 62,515 Prepaid and other current assets 349 8,366 772 — 9,487 Total current assets 1,976 63,901 28,430 (315) 93,992 Properties and equipment, net — 1,087,184 363,501 — 1,450,685 Operating lease right-of-use assets — 2,822 157 — 2,979 Net investment in leases — 166,316 — — 166,316 Investment in subsidiaries 1,789,808 286,883 — (2,076,691) — Intangible assets, net — 87,315 — — 87,315 Goodwill — 234,684 — — 234,684 Equity method investments — 81,089 39,455 — 120,544 Other assets 4,268 6,782 — — 11,050 Total assets $ 1,796,052 $ 2,016,976 $ 431,543 $ (2,077,006) $ 2,167,565 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 30,252 $ 16,463 $ (315) $ 46,400 Accrued interest 10,892 — — — 10,892 Deferred revenue — 10,868 500 — 11,368 Accrued property taxes — 2,915 1,077 — 3,992 Current operating lease liabilities — 804 71 — 875 Current finance lease liabilities — 3,713 — — 3,713 Other current liabilities 5 2,491 9 — 2,505 Total current liabilities 10,897 51,043 18,120 (315) 79,745 Long-term debt 1,405,603 — — — 1,405,603 Noncurrent operating lease liabilities — 2,476 — — 2,476 Noncurrent finance lease liabilities — 68,047 — — 68,047 Other long-term liabilities 260 12,171 474 — 12,905 Deferred revenue — 40,581 — — 40,581 Class B unit — 52,850 — — 52,850 Equity - partners 379,292 1,789,808 286,883 (2,076,691) 379,292 Equity - noncontrolling interests — — 126,066 — 126,066 Total liabilities and equity $ 1,796,052 $ 2,016,976 $ 431,543 $ (2,077,006) $ 2,167,565 Condensed Consolidating Statement of Income Three Months Ended March 31, 2021 Parent Guarantor Restricted Non-Guarantor Non-restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 95,701 $ 6,225 $ — $ 101,926 Third parties — 19,051 6,206 — 25,257 — 114,752 12,431 — 127,183 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 37,799 3,566 — 41,365 Depreciation and amortization — 20,836 4,229 — 25,065 General and administrative 1,178 1,790 — — 2,968 Goodwill impairment — 11,034 — — 11,034 1,178 71,459 7,795 — 80,432 Operating income (loss) (1,178) 43,293 4,636 — 46,751 Other income (expense): Equity in earnings of subsidiaries 77,809 4,136 — (81,945) — Equity in earnings of equity method investments 618 1,145 — 1,763 Interest expense (12,234) (1,006) — — (13,240) Interest income 6,548 — — 6,548 Gain on sales-type lease — 24,650 — — 24,650 Other income — 501 1 — 502 65,575 35,447 1,146 (81,945) 20,223 Income before income taxes 64,397 78,740 5,782 (81,945) 66,974 State income tax expense — (37) — — (37) Net income 64,397 78,703 5,782 (81,945) 66,937 Allocation of net income attributable to noncontrolling interests — (893) (1,647) — (2,540) Net income attributable to the partners $ 64,397 $ 77,810 $ 4,135 $ (81,945) $ 64,397 Condensed Consolidating Statement of Income Three Months Ended March 31, 2020 Parent Guarantor Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 94,755 $ 6,673 $ — $ 101,428 Third parties — 19,155 7,271 — 26,426 — 113,910 13,944 — 127,854 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 31,131 3,850 — 34,981 Depreciation and amortization 19,753 4,225 — 23,978 General and administrative 1,099 1,603 — — 2,702 1,099 52,487 8,075 — 61,661 Operating income (loss) (1,099) 61,423 5,869 — 66,193 Other income (expense): Equity in earnings of subsidiaries 68,535 4,295 — (72,830) — Equity in earnings of equity method investments — 2,088 (374) — 1,714 Interest expense (16,730) (1,037) — — (17,767) Interest income — 2,218 — — 2,218 Loss on early extinguishment of debt (25,915) — — — (25,915) Gain on sale of assets and other 70 420 16 — 506 25,960 7,984 (358) (72,830) (39,244) Income before income taxes 24,861 69,407 5,511 (72,830) 26,949 State income tax expense — (37) — — (37) Net income 24,861 69,370 5,511 (72,830) 26,912 Allocation of net income attributable to noncontrolling interests — (835) (1,216) — (2,051) Net income attributable to the partners $ 24,861 $ 68,535 $ 4,295 $ (72,830) $ 24,861

Description of Business and P_2

Description of Business and Presentation of Financial Statements (Policies)3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]
Principles of Consolidation and Common Control TransactionsPrinciples of Consolidation and Common Control Transactions The consolidated financial statements include our accounts and those of subsidiaries and joint ventures that we control. All significant intercompany transactions and balances have been eliminated.
Goodwill and Long-Lived AssetsGoodwill and Long-Lived Assets Goodwill represents the excess of our cost of an acquired business over the fair value of the assets acquired, less liabilities assumed. Goodwill is not amortized. We test goodwill at the reporting unit level for impairment annually and between annual tests if events or changes in circumstances indicate the carrying amount may exceed fair value. Our goodwill impairment testing first entails a comparison of our reporting unit fair values relative to their respective carrying values, including goodwill. If carrying value exceeds the estimated fair value for a reporting unit, we measure goodwill impairment as the excess of the carrying amount of the reporting unit over the estimated fair value of the reporting unit. Indicators of goodwill and long-lived asset impairment The changes in our new agreements with HFC related to our Cheyenne assets resulted in an increase in the net book value of our Cheyenne reporting unit due to sales-type lease accounting, which led us to determine indicators of potential goodwill impairment for our Cheyenne reporting unit were present. The estimated fair value of our Cheyenne reporting unit was derived using a combination of income and market approaches. The income approach reflects expected future cash flows based on anticipated gross margins, operating costs, and capital expenditures. The market approaches include both the guideline public company and guideline transaction methods. Both methods utilize pricing multiples derived from historical market transactions of other like-kind assets. These fair value measurements involve significant unobservable inputs (Level 3 inputs). See Note 5 for further discussion of Level 3 inputs. Our interim impairment testing of our Cheyenne reporting unit goodwill identified an impairment charge of $11.0 million, which was recorded in the three months ended March 31, 2021. We evaluate long-lived assets, including finite-lived intangible assets, for potential impairment by identifying whether indicators of impairment exist and, if so, assessing whether the long-lived assets are recoverable from estimated future undiscounted cash flows. The actual amount of impairment loss, if any, to be recorded is equal to the amount by which a long-lived asset’s carrying value exceeds its fair value.
Revenue RecognitionRevenue Recognition Revenues are generally recognized as products are shipped through our pipelines and terminals, feedstocks are processed through our refinery processing units or other services are rendered. The majority of our contracts with customers meet the definition of a lease since (1) performance of the contracts is dependent on specified property, plant, or equipment and (2) it is unlikely that one or more parties other than the customer will take more than a minor amount of the output associated with the specified property, plant, or equipment. Prior to the adoption of the new lease standard (see below), we bifurcated the consideration received between lease and service revenue. The new lease standard allows the election of a practical expedient whereby a lessor does not have to separate non-lease (service) components from lease components under certain conditions. The majority of our contracts meet these conditions, and we have made this election for those contracts. Under this practical expedient, we treat the combined components as a single performance obligation in accordance with Accounting Standards Codification (“ASC”) 606, which largely codified ASU 2014-09, if the non-lease (service) component is the dominant component. If the lease component is the dominant component, we treat the combined components as a lease in accordance with ASC 842, which largely codified ASU 2016-02. Several of our contracts include incentive or reduced tariffs once a certain quarterly volume is met. Revenue from the variable element of these transactions is recognized based on the actual volumes shipped as it relates specifically to rendering the services during the applicable quarter. The majority of our long-term transportation contracts specify minimum volume requirements, whereby, we bill a customer for a minimum level of shipments in the event a customer ships below their contractual requirements. If there are no future performance obligations, we will recognize these deficiency payments in revenue. In certain of these throughput agreements, a customer may later utilize such shortfall billings as credit towards future volume shipments in excess of its minimum levels within its respective contractual shortfall make-up period. Such amounts represent an obligation to perform future services, which may be initially deferred and later recognized as revenue based on estimated future shipping levels, including the likelihood of a customer’s ability to utilize such amounts prior to the end of the contractual shortfall make-up period. We recognize these deficiency payments in revenue when we do not expect we will be required to satisfy these performance obligations in the future based on the pattern of rights projected to be exercised by the customer. During the three months ended March 31, 2021 and 2020, we recognized $3.8 million and $7.5 million, respectively, of these deficiency payments in revenue, of which $0.5 million and $0.7 million, respectively, related to deficiency payments billed in prior periods. We have other cost reimbursement provisions in our throughput / storage agreements providing that customers (including HFC) reimburse us for certain costs. Such reimbursements are recorded as revenue or deferred revenue depending on the nature of the cost. Deferred revenue is recognized over the remaining contractual term of the related throughput agreement.
Lessee AccountingLessee Accounting - At inception, we determine if an arrangement is or contains a lease. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our payment obligation under the leasing arrangement. Right-of-use assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use our estimated incremental borrowing rate (“IBR”) to determine the present value of lease payments as most of our leases do not contain an implicit rate. Our IBR represents the interest rate which we would pay to borrow, on a collateralized basis, an amount equal to the lease payments over a similar term in a similar economic environment. We use the implicit rate when readily determinable. Operating leases are recorded in operating lease right-of-use assets and current and noncurrent operating lease liabilities on our consolidated balance sheet. Finance leases are included in properties and equipment, current finance lease liabilities and noncurrent finance lease liabilities on our consolidated balance sheet. When renewal options are defined in a lease, our lease term includes an option to extend the lease when it is reasonably certain we will exercise that option. Leases with a term of 12 months or less are not recorded on our balance sheet, and lease expense is accounted for on a straight-line basis. In addition, as a lessee, we separate non-lease components that are identifiable and exclude them from the determination of net present value of lease payment obligations.
Lessor AccountingLessor Accounting - Customer contracts that contain leases are generally classified as either operating leases, direct finance leases or sales-type leases. We consider inputs such as the lease term, fair value of the underlying asset and residual value of the underlying assets when assessing the classification.
Accounting Pronouncements Adopted During the Periods PresentedAccounting Pronouncements Adopted During the Periods Presented Credit Losses Measurement In June 2016, ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” was issued requiring measurement of all expected credit losses for certain types of financial instruments, including trade receivables, held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. We adopted this standard effective January 1, 2020, and adoption of the standard did not have a material impact on our financial condition, results of operations or cash flows.
Fair Value MeasurementsFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are derived using inputs (assumptions that market participants would use in pricing an asset or liability) including assumptions about risk. GAAP categorizes inputs used in fair value measurements into three broad levels as follows: • (Level 1) Quoted prices in active markets for identical assets or liabilities. • (Level 2) Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, similar assets and liabilities in markets that are not active or can be corroborated by observable market data. • (Level 3) Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes valuation techniques that involve significant unobservable inputs.

Revenues (Tables)

Revenues (Tables)3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregated RevenueDisaggregated revenues are as follows: Three Months Ended 2021 2020 (In thousands) Pipelines $ 66,505 $ 70,472 Terminals, tanks and loading racks 38,182 37,498 Refinery processing units 22,496 19,884 $ 127,183 $ 127,854
Schedule of RevenuesR evenues on our consolidated statem ents of income were composed of the following lease and service revenues: Three Months Ended 2021 2020 (In thousands) Lease revenues $ 87,944 $ 93,185 Service revenues 39,239 34,669 $ 127,183 $ 127,854
Schedule of Contract Asset and Contract Liability BalancesOur consolidated balance sheets included the contract assets and liabilities in the table below: March 31, December 31, (In thousands) Contract assets $ 6,425 $ 6,306 Contract liabilities $ (500) $ (500)
Schedule of Future Performance ObligationsWe expect to recognize revenue for these unfulfilled performance obligations as shown in the table below (amounts shown in table include both service and lease revenues): Years Ending December 31, (In millions) Remainder of 2021 $ 253 2022 310 2023 274 2024 236 2025 171 2026 156 Thereafter 479 Total $ 1,879

Leases (Tables)

Leases (Tables)3 Months Ended
Mar. 31, 2021
Leases [Abstract]
Schedule of Supplemental Balance Sheet InformationSupplemental balance sheet information related to leases was as follows (in thousands, except for lease term and discount rate): March 31, December 31, 2020 Operating leases: Operating lease right-of-use assets, net $ 2,912 $ 2,979 Current operating lease liabilities 882 875 Noncurrent operating lease liabilities 2,404 2,476 Total operating lease liabilities $ 3,286 $ 3,351 Finance leases: Properties and equipment $ 6,053 $ 6,410 Accumulated amortization (3,089) (3,390) Properties and equipment, net $ 2,964 $ 3,020 Current finance lease liabilities $ 3,668 $ 3,713 Noncurrent finance lease liabilities 67,309 68,047 Total finance lease liabilities $ 70,977 $ 71,760 Weighted average remaining lease term (in years) Operating leases 5.7 5.9 Finance leases 15.7 15.9 Weighted average discount rate Operating leases 4.9% 4.8% Finance leases 5.6% 5.6%
Schedule of Supplemental Cash Flow Information and Components of Lease ExpenseSupplemental cash flow and other information related to leases were as follows: Three Months Ended 2021 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows on operating leases $ 312 $ 282 Operating cash flows on finance leases $ 1,058 $ 1,077 Financing cash flows on finance leases $ 958 $ 1,096 The components of lease expense were as follows: Three Months Ended 2021 2020 (In thousands) Operating lease costs $ 298 $ 273 Finance lease costs Amortization of assets 212 242 Interest on lease liabilities 1,006 1,037 Variable lease cost 66 49 Total net lease cost $ 1,582 $ 1,601
Schedule of Operating and Finance Lease MaturitiesMaturities of lease liabilities were as follows: March 31, 2021 Operating Finance (In thousands) 2021 $ 747 $ 5,537 2022 688 7,332 2023 607 7,375 2024 494 6,918 2025 426 6,456 2026 and thereafter 750 73,888 Total lease payments 3,712 107,506 Less: Imputed interest (426) (36,529) Total lease obligations 3,286 70,977 Less: Current lease liabilities (882) (3,668) Noncurrent lease liabilities $ 2,404 $ 67,309
Sales-Type Lease, Gain RecognizedTherefore, we recognized a gain on sales-type leases during the three months ended March 31, 2021 composed of the following: (In thousands) Net investment in leases $ 41,246 Properties and equipment, net (23,155) Deferred revenue 6,559 Gain on sales-type leases $ 24,650
Schedule of Lease IncomeLease income recognized was as follows: Three Months Ended 2021 2020 (In thousands) Operating lease revenues $ 85,892 $ 91,388 Direct financing lease interest income 524 524 Gain on sales-type leases 24,650 — Sales-type lease interest income 6,025 1,655 Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable 2,052 1,797
Schedule of Minimum Undiscounted Lease PaymentsAnnual minimum undiscounted lease payments under our leases were as follows as of March 31, 2021: Operating Finance Sales-type Years Ending December 31, (In thousands) Remainder of 2021 $ 212,736 $ 1,598 $ 20,900 2022 282,394 2,145 27,867 2023 251,943 2,162 23,961 2024 215,839 2,179 20,732 2025 152,925 2,196 17,305 2026 and thereafter 553,945 38,591 133,315 Total lease receipt payments $ 1,669,782 $ 48,871 $ 244,080 Less: Imputed interest (32,436) (189,424) 16,435 54,656 Unguaranteed residual assets at end of leases — 139,121 Net investment in leases $ 16,435 $ 193,777
Schedule of Net Investment in LeasesNet investments in leases recorded on our balance sheet were composed of the following: March 31, 2021 December 31, 2020 Sales-type Leases Direct Financing Leases Sales-type Leases Direct Financing Leases (In thousands) (In thousands) Lease receivables (1) $ 122,514 $ 16,435 $ 88,922 $ 16,452 Unguaranteed residual assets 71,263 — 64,551 — Net investment in leases $ 193,777 $ 16,435 $ 153,473 $ 16,452 (1) Current portion of lease receivables included in prepaid and other current assets on the balance sheet.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Carrying Amounts of Estimated Fair Values of Senior NotesThe carrying amounts and estimated fair values of our senior notes were as follows: March 31, 2021 December 31, 2020 Financial Instrument Fair Value Input Level Carrying Fair Value Carrying Fair Value (In thousands) Liabilities: 5% Senior Notes Level 2 492,335 504,960 492,103 506,540

Properties and Equipment (Table

Properties and Equipment (Tables)3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]
Schedule of Properties and EquipmentThe carrying amounts of our properties and equipment were as follows: March 31, December 31, (In thousands) Pipelines, terminals and tankage 1 $ 1,554,870 $ 1,575,815 Refinery assets 348,882 348,882 Land and right of way 87,076 87,076 Construction in progress 79,762 58,467 Other 1 45,471 46,201 2,116,061 2,116,441 Less accumulated depreciation (683,262) (665,756) $ 1,432,799 $ 1,450,685

Intangible Assets (Tables)

Intangible Assets (Tables)3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets by Major ClassThe carrying amounts of our intangible assets were as follows: Useful Life March 31, December 31, (In thousands) Delek transportation agreement 30 years $ 59,933 $ 59,933 HFC transportation agreement 10-15 years 75,131 75,131 Customer relationships 10 years 69,683 69,683 Other 20 years 50 50 204,797 204,797 Less accumulated amortization (120,984) (117,482) $ 83,813 $ 87,315

Employees, Retirement and Inc_2

Employees, Retirement and Incentive Plans (Tables)3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Phantom UnitsA summary of phantom unit activity and changes during the three months ended March 31, 2021, is presented below: Phantom Units Units Weighted Average Grant-Date Fair Value Outstanding at January 1, 2021 (nonvested) 295,992 $ 14.48 Forfeited (870) 16.17 Outstanding at March 31, 2021 (nonvested) 295,122 14.48
Schedule of Performance UnitsA summary of performance unit activity and changes for the three months ended March 31, 2021, is presented below: Performance Units Units Outstanding at January 1, 2021 (nonvested) 77,472 Vesting and transfer of common units to recipients (10,881) Outstanding at March 31, 2021 (nonvested) 66,591

Debt (Tables)

Debt (Tables)3 Months Ended
Mar. 31, 2021
Debt Instruments [Abstract]
Schedule of Long-term Debt InstrumentsThe carrying amounts of our long-term debt were as follows: March 31, December 31, (In thousands) Credit Agreement Amount outstanding $ 896,000 $ 913,500 5% Senior Notes Principal 500,000 500,000 Unamortized premium and debt issuance costs (7,665) (7,897) 492,335 492,103 Total long-term debt $ 1,388,335 $ 1,405,603

Net Income Per Limited Partne_2

Net Income Per Limited Partner Unit (Tables)3 Months Ended
Mar. 31, 2021
Net Income per Limited Partner Unit [Abstract]
Schedule of Net Income per Limited Partner UnitNet income per limited partner unit is computed as follows: Three Months Ended 2021 2020 (In thousands, except per unit data) Net income attributable to the partners $ 64,397 $ 24,861 Less: Participating securities’ share in earnings (225) — Net income attributable to common units 64,172 24,861 Weighted average limited partners' units outstanding 105,440 105,440 Limited partners' per unit interest in earnings - basic and diluted $ 0.61 $ 0.24

Segment Information (Tables)

Segment Information (Tables)3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Schedule of Segment Reporting InformationThree Months Ended 2021 2020 (In thousands) Revenues: Pipelines and terminals - affiliate $ 79,430 $ 81,544 Pipelines and terminals - third-party 25,257 26,426 Refinery processing units - affiliate 22,496 19,884 Total segment revenues $ 127,183 $ 127,854 Segment operating income: Pipelines and terminals (1) $ 41,484 $ 58,903 Refinery processing units 8,235 9,992 Total segment operating income 49,719 68,895 Unallocated general and administrative expenses (2,968) (2,702) Interest and financing costs, net (6,692) (15,549) Loss on early extinguishment of debt — (25,915) Equity in earnings of equity method investments 1,763 1,714 Gain on sales-type leases 24,650 — Gain (loss) on sale of assets and other 502 506 Income before income taxes $ 66,974 $ 26,949 Capital Expenditures: Pipelines and terminals $ 33,218 $ 18,618 Refinery processing units — 324 Total capital expenditures $ 33,218 $ 18,942 March 31, 2021 December 31, 2020 (In thousands) Identifiable assets: Pipelines and terminals (2) $ 1,739,414 $ 1,729,547 Refinery processing units 300,363 305,090 Other 130,749 132,928 Total identifiable assets $ 2,170,526 $ 2,167,565 (1) Pipelines and terminals segment operating income includes goodwill impairment charg e of $11.0 million for the three months ended March 31, 2021. (2) Includes goodwill of $223.7 million as of March 31, 2021 and $234.7 million as of December 31, 2020.

Supplemental Guarantor _ Non-_2

Supplemental Guarantor / Non-Guarantor Financial Information (Tables)3 Months Ended
Mar. 31, 2021
Supplemental Guarantor / Non-Guarantor Financial Information [Abstract]
Schedule of Condensed Consolidating Balance SheetCondensed Consolidating Balance Sheet March 31, 2021 Parent Guarantor Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 2,125 $ (838) $ 18,466 $ — $ 19,753 Accounts receivable — 54,301 8,919 (302) 62,918 Prepaid and other current assets 501 8,252 749 — 9,502 Total current assets 2,626 61,715 28,134 (302) 92,173 Properties and equipment, net — 1,054,969 377,830 — 1,432,799 Operating lease right-of-use assets — 2,773 139 — 2,912 Net investment in leases — 206,124 — — 206,124 Investment in subsidiaries 1,793,064 290,948 — (2,084,012) — Intangible assets, net — 83,813 — — 83,813 Goodwill — 223,650 — — 223,650 Equity method investments — 79,301 38,964 — 118,265 Other assets 3,671 7,119 — — 10,790 Total assets $ 1,799,361 $ 2,010,412 $ 445,067 $ (2,084,314) $ 2,170,526 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 22,978 $ 17,683 $ (302) $ 40,359 Accrued interest 4,661 — — — 4,661 Deferred revenue — 13,589 500 — 14,089 Accrued property taxes — 3,488 1,762 — 5,250 Current operating lease liabilities — 810 72 — 882 Current finance lease liabilities — 3,668 — — 3,668 Other current liabilities 129 2,848 12 — 2,989 Total current liabilities 4,790 47,381 20,029 (302) 71,898 Long-term debt 1,388,335 — — — 1,388,335 Noncurrent operating lease liabilities — 2,404 — — 2,404 Noncurrent finance lease liabilities — 67,309 — — 67,309 Other long-term liabilities 260 11,197 450 — 11,907 Deferred revenue — 35,314 — — 35,314 Class B unit — 53,743 — — 53,743 Equity - partners 405,976 1,793,064 290,948 (2,084,012) 405,976 Equity - noncontrolling interests — — 133,640 — 133,640 Total liabilities and equity $ 1,799,361 $ 2,010,412 $ 445,067 $ (2,084,314) $ 2,170,526 Condensed Consolidating Balance Sheet December 31, 2020 Parent Guarantor Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 1,627 $ (987) $ 21,350 $ — $ 21,990 Accounts receivable — 56,522 6,308 (315) 62,515 Prepaid and other current assets 349 8,366 772 — 9,487 Total current assets 1,976 63,901 28,430 (315) 93,992 Properties and equipment, net — 1,087,184 363,501 — 1,450,685 Operating lease right-of-use assets — 2,822 157 — 2,979 Net investment in leases — 166,316 — — 166,316 Investment in subsidiaries 1,789,808 286,883 — (2,076,691) — Intangible assets, net — 87,315 — — 87,315 Goodwill — 234,684 — — 234,684 Equity method investments — 81,089 39,455 — 120,544 Other assets 4,268 6,782 — — 11,050 Total assets $ 1,796,052 $ 2,016,976 $ 431,543 $ (2,077,006) $ 2,167,565 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ — $ 30,252 $ 16,463 $ (315) $ 46,400 Accrued interest 10,892 — — — 10,892 Deferred revenue — 10,868 500 — 11,368 Accrued property taxes — 2,915 1,077 — 3,992 Current operating lease liabilities — 804 71 — 875 Current finance lease liabilities — 3,713 — — 3,713 Other current liabilities 5 2,491 9 — 2,505 Total current liabilities 10,897 51,043 18,120 (315) 79,745 Long-term debt 1,405,603 — — — 1,405,603 Noncurrent operating lease liabilities — 2,476 — — 2,476 Noncurrent finance lease liabilities — 68,047 — — 68,047 Other long-term liabilities 260 12,171 474 — 12,905 Deferred revenue — 40,581 — — 40,581 Class B unit — 52,850 — — 52,850 Equity - partners 379,292 1,789,808 286,883 (2,076,691) 379,292 Equity - noncontrolling interests — — 126,066 — 126,066 Total liabilities and equity $ 1,796,052 $ 2,016,976 $ 431,543 $ (2,077,006) $ 2,167,565
Schedule of Condensed Consolidating Statement of IncomeCondensed Consolidating Statement of Income Three Months Ended March 31, 2021 Parent Guarantor Restricted Non-Guarantor Non-restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 95,701 $ 6,225 $ — $ 101,926 Third parties — 19,051 6,206 — 25,257 — 114,752 12,431 — 127,183 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 37,799 3,566 — 41,365 Depreciation and amortization — 20,836 4,229 — 25,065 General and administrative 1,178 1,790 — — 2,968 Goodwill impairment — 11,034 — — 11,034 1,178 71,459 7,795 — 80,432 Operating income (loss) (1,178) 43,293 4,636 — 46,751 Other income (expense): Equity in earnings of subsidiaries 77,809 4,136 — (81,945) — Equity in earnings of equity method investments 618 1,145 — 1,763 Interest expense (12,234) (1,006) — — (13,240) Interest income 6,548 — — 6,548 Gain on sales-type lease — 24,650 — — 24,650 Other income — 501 1 — 502 65,575 35,447 1,146 (81,945) 20,223 Income before income taxes 64,397 78,740 5,782 (81,945) 66,974 State income tax expense — (37) — — (37) Net income 64,397 78,703 5,782 (81,945) 66,937 Allocation of net income attributable to noncontrolling interests — (893) (1,647) — (2,540) Net income attributable to the partners $ 64,397 $ 77,810 $ 4,135 $ (81,945) $ 64,397 Condensed Consolidating Statement of Income Three Months Ended March 31, 2020 Parent Guarantor Non-Guarantor Non-Restricted Subsidiaries Eliminations Consolidated (In thousands) Revenues: Affiliates $ — $ 94,755 $ 6,673 $ — $ 101,428 Third parties — 19,155 7,271 — 26,426 — 113,910 13,944 — 127,854 Operating costs and expenses: Operations (exclusive of depreciation and amortization) — 31,131 3,850 — 34,981 Depreciation and amortization 19,753 4,225 — 23,978 General and administrative 1,099 1,603 — — 2,702 1,099 52,487 8,075 — 61,661 Operating income (loss) (1,099) 61,423 5,869 — 66,193 Other income (expense): Equity in earnings of subsidiaries 68,535 4,295 — (72,830) — Equity in earnings of equity method investments — 2,088 (374) — 1,714 Interest expense (16,730) (1,037) — — (17,767) Interest income — 2,218 — — 2,218 Loss on early extinguishment of debt (25,915) — — — (25,915) Gain on sale of assets and other 70 420 16 — 506 25,960 7,984 (358) (72,830) (39,244) Income before income taxes 24,861 69,407 5,511 (72,830) 26,949 State income tax expense — (37) — — (37) Net income 24,861 69,370 5,511 (72,830) 26,912 Allocation of net income attributable to noncontrolling interests — (835) (1,216) — (2,051) Net income attributable to the partners $ 24,861 $ 68,535 $ 4,295 $ (72,830) $ 24,861

Description of Business and P_3

Description of Business and Presentation of Financial Statements - Narrative (Details) $ in ThousandsJan. 01, 2021USD ($)renewalOptionMar. 31, 2021USD ($)segmentMar. 31, 2020USD ($)
Other Ownership Interests [Line Items]
Ownership percentage, controlling interest57.00%
Lease term (in years)10 years
Lease renewal period options | renewalOption2
Lease renewal option period (in years)5 years
Annual lease payment due $ 5,000
Service fee arrangement period (in years)5 years
Payment due for termination of commitment $ 10,000
Number of reportable segments | segment2
Goodwill impairment $ 11,034 $ 0
Deferred revenue recognized3,800 7,500
Deferred revenue recognized. billed prior period500 $ 700
Cheyenne
Other Ownership Interests [Line Items]
Goodwill impairment $ 11,000
UNEV Pipeline
Other Ownership Interests [Line Items]
Ownership percentage in equity method investment75.00%
Osage Pipeline
Other Ownership Interests [Line Items]
Ownership percentage in equity method investment50.00%
Cushing Connect Pipeline & Terminal
Other Ownership Interests [Line Items]
Ownership percentage in equity method investment50.00%
Cheyenne
Other Ownership Interests [Line Items]
Ownership percentage in equity method investment50.00%

Investment in Joint Venture (De

Investment in Joint Venture (Details) bbl in Thousands, $ in MillionsOct. 02, 2019USD ($)bblMar. 31, 2021
Schedule of Equity Method Investments [Line Items]
Pipeline volume (in barrels per day) | bbl160
Cushing Connect Joint Venture
Schedule of Equity Method Investments [Line Items]
Terminal storage (in barrels) | bbl1,500
Percent of budget which construction costs are payable by HEP10.00%
Cushing Connect Joint Venture | Minimum
Schedule of Equity Method Investments [Line Items]
Payment to acquire joint venture | $ $ 65
Cushing Connect Joint Venture | Maximum
Schedule of Equity Method Investments [Line Items]
Payment to acquire joint venture | $ $ 70

Revenues - Schedule of Disaggre

Revenues - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Disaggregated Revenue $ 127,183 $ 127,854
Pipelines
Disaggregation of Revenue [Line Items]
Disaggregated Revenue66,505 70,472
Terminals, tanks and loading racks
Disaggregation of Revenue [Line Items]
Disaggregated Revenue38,182 37,498
Refinery processing units
Disaggregation of Revenue [Line Items]
Disaggregated Revenue $ 22,496 $ 19,884

Revenues - Schedule of Affiliat

Revenues - Schedule of Affiliate and Third Party Revenues (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Revenue from External Customer [Line Items]
Lease revenues $ 87,944 $ 93,185
Revenues:127,183 127,854
Service revenues
Revenue from External Customer [Line Items]
Revenues: $ 39,239 $ 34,669

Revenues - Narrative (Details)

Revenues - Narrative (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Deferred revenue recognized. billed prior period $ 0.5 $ 0.7
Revenue included in contract assets0.1
Performance obligation revenue $ 1,879

Revenues - Schedule of Contract

Revenues - Schedule of Contract Asset and Liability Balances (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract assets $ 6,425 $ 6,306
Contract liabilities $ (500) $ (500)

Revenues - Schedule of Future P

Revenues - Schedule of Future Performance Obligations (Details) $ in MillionsMar. 31, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unfulfilled performance obligation revenue $ 1,879
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unfulfilled performance obligation revenue $ 253
Satisfaction period9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unfulfilled performance obligation revenue $ 310
Satisfaction period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unfulfilled performance obligation revenue $ 274
Satisfaction period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unfulfilled performance obligation revenue $ 236
Satisfaction period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unfulfilled performance obligation revenue $ 171
Satisfaction period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unfulfilled performance obligation revenue $ 156
Satisfaction period1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unfulfilled performance obligation revenue $ 479
Satisfaction period

Leases - Narrative (Details)

Leases - Narrative (Details) $ in MillionsMar. 31, 2021USD ($)renewalOptionDec. 31, 2020USD ($)
Lessee, Lease, Description [Line Items]
Finance lease term10 years
Cost of asset under finance leases $ 6.1 $ 6.4
Accumulated depreciation of assets under finance leases $ 3.1 $ 3.4
Number of renewal options | renewalOption1
Finance lease extension option (in years)10 years
Minimum
Lessee, Lease, Description [Line Items]
Operating lease term1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease term24 years
Operating lease renewal term10 years
Vehicles | Minimum
Lessee, Lease, Description [Line Items]
Finance lease term33 months
Vehicles | Maximum
Lessee, Lease, Description [Line Items]
Finance lease term48 months

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Operating leases:
Operating lease right-of-use assets, net $ 2,912 $ 2,979
Current operating lease liabilities882 875
Noncurrent operating lease liabilities2,404 2,476
Total operating lease liabilities3,286 3,351
Finance leases:
Properties and equipment6,053 6,410
Accumulated amortization(3,089)(3,390)
Properties and equipment, net $ 2,964 $ 3,020
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]Properties and equipment, net (Cushing Connect VIEs: $65,741 and $47,801, respectively)Properties and equipment, net (Cushing Connect VIEs: $65,741 and $47,801, respectively)
Current finance lease liabilities $ 3,668 $ 3,713
Noncurrent finance lease liabilities67,309 68,047
Total finance lease liabilities $ 70,977 $ 71,760
Weighted average remaining lease term (in years)
Operating leases5 years 8 months 12 days5 years 10 months 24 days
Finance leases15 years 8 months 12 days15 years 10 months 24 days
Weighted average discount rate
Operating leases4.90%4.80%
Finance leases5.60%5.60%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows on operating leases $ 312 $ 282
Operating cash flows on finance leases1,058 1,077
Financing cash flows on finance leases $ 958 $ 1,096

Leases - Operating and Finance

Leases - Operating and Finance Lease Maturities (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Operating
2021 $ 747
2022688
2023607
2024494
2025426
2026 and thereafter750
Total lease payments3,712
Less: Imputed interest(426)
Total operating lease liabilities3,286 $ 3,351
Less: Current lease liabilities(882)(875)
Noncurrent operating lease liabilities2,404 2,476
Finance
20215,537
20227,332
20237,375
20246,918
20256,456
2026 and thereafter73,888
Total lease payments107,506
Less: Imputed interest(36,529)
Total finance lease liabilities70,977 71,760
Less: Current lease liabilities(3,668)(3,713)
Noncurrent lease liabilities $ 67,309 $ 68,047

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Leases [Abstract]
Operating lease costs $ 298 $ 273
Amortization of assets212 242
Interest on lease liabilities1,006 1,037
Variable lease cost66 49
Total net lease cost $ 1,582 $ 1,601

Leases - Gain on Sales-Type Lea

Leases - Gain on Sales-Type Leases (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Leases [Abstract]
Net investment in leases $ 41,246
Properties and equipment, net(23,155)
Deferred revenue6,559
Gain on sales-type leases $ 24,650 $ 0

Leases - Schedule of Lease Inco

Leases - Schedule of Lease Income (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Leases [Abstract]
Operating lease revenues $ 85,892 $ 91,388
Direct financing lease interest income524 524
Gain on sales-type leases24,650 0
Sales-type lease interest income6,025 1,655
Lease revenues relating to variable lease payments not included in measurement of the sales-type lease receivable $ 2,052 $ 1,797

Leases - Schedule of Minimum Un

Leases - Schedule of Minimum Undiscounted Lease Payments (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Operating
Remainder of 2021 $ 212,736
2022282,394
2023251,943
2024215,839
2025152,925
2026 and thereafter553,945
Total lease receipt payments1,669,782
Finance
Finance and Sales-type
Remainder of 20211,598
20222,145
20232,162
20242,179
20252,196
2026 and thereafter38,591
Total lease receipt payments48,871
Less: Imputed interest(32,436)
Lease receivables16,435
Unguaranteed residual assets at end of leases0
Net investment in leases16,435 $ 16,452
Sales-type
Finance and Sales-type
Remainder of 202120,900
202227,867
202323,961
202420,732
202517,305
2026 and thereafter133,315
Total lease receipt payments244,080
Less: Imputed interest(189,424)
Lease receivables54,656
Unguaranteed residual assets at end of leases139,121
Net investment in leases $ 193,777 $ 153,473

Leases - Net Investments in Lea

Leases - Net Investments in Leases (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Sales-type Leases
Lessor, Lease, Description [Line Items]
Lease receivable $ 122,514 $ 88,922
Unguaranteed residual assets71,263 64,551
Net investment in leases193,777 153,473
Direct Financing Leases
Lessor, Lease, Description [Line Items]
Lease receivable16,435 16,452
Unguaranteed residual assets0 0
Net investment in leases $ 16,435 $ 16,452

Fair Value Measurements (Detail

Fair Value Measurements (Details) - 5% Senior Notes - Level 2 - USD ($) $ in ThousandsDec. 31, 2020Mar. 31, 2020
Carrying Value
Debt Instrument [Line Items]
Senior notes $ 492,103 $ 492,335
Fair Value
Debt Instrument [Line Items]
Senior notes $ 506,540 $ 504,960

Properties and Equipment (Detai

Properties and Equipment (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Properties and equipment $ 2,116,061 $ 2,116,441
Less accumulated depreciation(683,262)(665,756)
Properties and equipment, net1,432,799 1,450,685
Depreciation expense21,400 $ 20,300
Pipelines, terminals and tankage
Property, Plant and Equipment [Line Items]
Properties and equipment1,554,870 1,575,815
Refinery assets
Property, Plant and Equipment [Line Items]
Properties and equipment348,882 348,882
Land and right of way
Property, Plant and Equipment [Line Items]
Properties and equipment87,076 87,076
Construction in progress
Property, Plant and Equipment [Line Items]
Properties and equipment79,762 58,467
Other
Property, Plant and Equipment [Line Items]
Properties and equipment $ 45,471 $ 46,201

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross $ 204,797,000 $ 204,797,000
Less accumulated amortization(120,984,000)(117,482,000)
Intangible assets, net83,813,000 87,315,000
Amortization expense3,500,000 $ 3,500,000
Estimated amortization expense for 202214,000,000
Estimated amortization expense for 20239,900,000
Estimated amortization expense for 20249,100,000
Estimated amortization expense for 20259,100,000
Estimated amortization expense for 20269,100,000
Basis in transportation agreements $ 0
Delek transportation agreement
Finite-Lived Intangible Assets, Net [Abstract]
Useful Life30 years
Intangible assets, gross $ 59,933,000 59,933,000
HFC transportation agreement
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross $ 75,131,000 75,131,000
Customer relationships
Finite-Lived Intangible Assets, Net [Abstract]
Useful Life10 years
Intangible assets, gross $ 69,683,000 69,683,000
Other
Finite-Lived Intangible Assets, Net [Abstract]
Useful Life20 years
Intangible assets, gross $ 50,000 $ 50,000
Minimum | HFC transportation agreement
Finite-Lived Intangible Assets, Net [Abstract]
Useful Life10 years
Maximum | HFC transportation agreement
Finite-Lived Intangible Assets, Net [Abstract]
Useful Life15 years

Employees, Retirement and Inc_3

Employees, Retirement and Incentive Plans - Retirement and Benefit Plan Costs (Details) $ in Millions3 Months Ended
Mar. 31, 2021USD ($)componentplansharesMar. 31, 2020USD ($)
Share-based Compensation Arrangements
Retirement and benefit costs | $ $ 2.2 $ 2.2
Number of long-term incentive plan components | component4
Number of incentive-based award plans | plan2
Compensation costs | $ $ 0.7 $ 0.5
Long-term Incentive Plan
Share-based Compensation Arrangements
Units authorized to be granted (in shares) | shares2,500,000
Units not yet granted (in shares) | shares855,049

Employees, Retirement and Inc_4

Employees, Retirement and Incentive Plans - Phantom Units (Details) - Phantom Units - USD ($) $ / shares in Units, $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2021
Share-based Compensation Arrangement Instruments [Roll Forward]
Units outstanding at beginning of period (in shares)295,992
Forfeited (in shares)(870)
Units outstanding at end of period (in shares)295,122
Weighted Average Grant-Date Fair Value
Weighted-average grant-date fair value of units outstanding at beginning of period (in USD per share) $ 14.48
Weighted-average grant-date fair value of units forfeited (in USD per share)16.17
Weighted-average grant-date fair value of units outstanding at end of period (in USD per share) $ 14.48 $ 14.48
Grant date fair value of vested units transferred to recipients $ 0
Unrecognized compensation related to nonvested units $ 2.6
Weighted average recognition period (years)1 year 6 months
Minimum
Weighted Average Grant-Date Fair Value
Award vesting period1 year
Maximum
Weighted Average Grant-Date Fair Value
Award vesting period3 years

Employees, Retirement and Inc_5

Employees, Retirement and Incentive Plans - Performance Units (Details) - Performance Shares - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Share-based Compensation Arrangement, Nonvested [Roll Forward]
Units outstanding at beginning of period (in shares)77,472
Vesting and transfer of full ownership to recipients (in shares)(10,881)
Units outstanding at end of period (in shares)66,591
Grant date fair value of vested units transferred to recipients $ 0.4 $ 0.4
Value of performance units vested and expected to vest1.2
Unrecognized compensation related to nonvested units $ 0.7
Weighted average recognition period (years)2 years
Long-term Incentive Plan
Share-based Compensation Arrangements
Performance period3 years
Long-term Incentive Plan | Certain Officers | Market Performance
Share-based Compensation Arrangements
Range of performance units earned, minimum (as a percent)0.00%
Range of performance units earned, maximum (as a percent)200.00%

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) - USD ($)Apr. 30, 2021Mar. 31, 2021
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit agreement $ 1,400,000,000
Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit agreement $ 1,200,000,000
Line of credit maximum accordion feature1,700,000,000
Subsequent Event | Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit agreement $ 50,000,000

Debt - Senior Notes (Details)

Debt - Senior Notes (Details) - USD ($)Feb. 05, 2020Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020Feb. 04, 2020
Debt Instrument [Line Items]
Loss on early extinguishment of debt $ 0 $ 25,915,000
6% Senior notes
Debt Instrument [Line Items]
Stated interest rate, senior notes6.00%
Principal $ 500,000,000
Redemption cost $ 522,500,000
Loss on early extinguishment of debt25,900,000
Debt redemption premium $ 22,500,000
Unamortized discount3,400,000
5% Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount of senior note $ 500,000,000
Stated interest rate, senior notes5.00%
Principal $ 500,000,000 $ 500,000,000
Unamortized discount $ 7,665,000 $ 7,897,000

Debt - Long-Term Debt (Details)

Debt - Long-Term Debt (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Debt Instrument [Line Items]
Amount outstanding $ 896,000 $ 913,500
Total long-term debt1,388,335 1,405,603
5% Senior Notes
Debt Instrument [Line Items]
Principal500,000 500,000
Unamortized premium and debt issuance costs(7,665)(7,897)
Senior Notes $ 492,335 $ 492,103
Stated interest rate, senior notes5.00%

Related Party Transactions (Det

Related Party Transactions (Details) $ in ThousandsJan. 01, 2021USD ($)renewalOptionMar. 31, 2021USD ($)Mar. 31, 2020USD ($)Dec. 31, 2020USD ($)
Related Party Transaction [Line Items]
Revenues: $ 127,183 $ 127,854
Accounts receivables due45,467 $ 47,972
Accounts payable due10,190 18,120
Lease income500 500
Gain on sales-type leases24,650 0
Sales-type lease payments received6,200 2,400
Lease term (in years)10 years
Lease renewal period options | renewalOption2
Lease renewal option period (in years)5 years
Annual lease payment due $ 5,000
Service fee arrangement period (in years)5 years
Payment due for termination of commitment $ 10,000
HFC
Related Party Transaction [Line Items]
Minimum annualized payments received338,000
Administrative fee700 700
Revenues:101,900 101,400
Reimbursements for expense and capital projects3,100 3,100
Distributions on common units20,900 37,600
Accounts receivables due45,500 48,000
Accounts payable due10,200 18,100
Deferred revenue $ 400 $ 400
HFC | Revenue Benchmark | Revenue from Rights Concentration Risk
Related Party Transaction [Line Items]
Percentage of total revenue80.00%
Annual Administrative Fee | HFC
Related Party Transaction [Line Items]
Administrative fee $ 2,600
Reimbursements Paid | HFC
Related Party Transaction [Line Items]
Expense of employees supporting operations $ 14,400 $ 14,100

Partners' Equity Income Allocat

Partners' Equity Income Allocations and Cash Distributions (Details) - USD ($) $ / shares in Units, $ in MillionsApr. 22, 2021Mar. 31, 2021Mar. 31, 2020
Class of Stock [Line Items]
Partners' capital units held by controlling interest (in shares)59,630,030
Ownership percentage, controlling interest57.00%
Value of common units available to issue and sell under offering program $ 200
Units issued under offering program (in shares)2,413,153
Proceeds from issuance of equity $ 82.3
Cash distributions $ 37 $ 34.5
Subsequent Event
Class of Stock [Line Items]
Cash distribution declared (in USD per share) $ 0.35

Net Income Per Limited Partne_3

Net Income Per Limited Partner Unit - Schedules of Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Net Income per Limited Partner Unit [Abstract]
Net income attributable to the partners $ 64,397 $ 24,861
Less: Participating securities’ share in earnings(225)0
Net income attributable to common units $ 64,172 $ 24,861
Weighted average limited partners’ units outstanding (in shares)105,440 105,440
Limited partners’ per unit interest in earnings—basic and diluted (in USD per share) $ 0.61 $ 0.24

Environmental Environmental (De

Environmental Environmental (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Loss Contingencies [Line Items]
Environmental remediation expense $ 33 $ 200
Accrued environmental liabilities4,400 $ 4,500
Other Noncurrent Liabilities
Loss Contingencies [Line Items]
Accrued environmental liabilities2,300 2,500
Affiliates
Loss Contingencies [Line Items]
Accrued environmental liabilities $ 500 $ 500

Segments Information (Details)

Segments Information (Details) $ in Thousands3 Months Ended
Mar. 31, 2021USD ($)segmentMar. 31, 2020USD ($)Dec. 31, 2020USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment2
Revenues: $ 127,183 $ 127,854
Operating income46,751 66,193
Unallocated general and administrative expenses(2,968)(2,702)
Interest and financing costs, net(6,692)(15,549)
Loss on early extinguishment of debt0 (25,915)
Equity in earnings of equity method investments1,763 1,714
Gain on sales-type leases24,650 0
Gain (loss) on sale of assets and other502 506
Income before income taxes66,974 26,949
Capital Expenditures:33,218 18,942
Capital Expenditures:2,170,526 $ 2,167,565
Goodwill impairment11,034 0
Goodwill223,650 234,684
Affiliates
Segment Reporting Information [Line Items]
Revenues:101,926 101,428
Third parties
Segment Reporting Information [Line Items]
Revenues:25,257 26,426
Pipelines and terminals
Segment Reporting Information [Line Items]
Capital Expenditures:33,218 18,618
Refinery processing units
Segment Reporting Information [Line Items]
Revenues:22,496 19,884
Capital Expenditures:0 324
Operating Segments
Segment Reporting Information [Line Items]
Revenues:127,183 127,854
Operating income49,719 68,895
Operating Segments | Pipelines and terminals
Segment Reporting Information [Line Items]
Operating income41,484 58,903
Capital Expenditures:1,739,414 1,729,547
Goodwill impairment11,000
Goodwill223,700 234,700
Operating Segments | Pipelines and terminals | Affiliates
Segment Reporting Information [Line Items]
Revenues:79,430 81,544
Operating Segments | Pipelines and terminals | Third parties
Segment Reporting Information [Line Items]
Revenues:25,257 26,426
Operating Segments | Refinery processing units
Segment Reporting Information [Line Items]
Revenues:22,496 19,884
Operating income8,235 $ 9,992
Capital Expenditures:300,363 305,090
Other
Segment Reporting Information [Line Items]
Capital Expenditures: $ 130,749 $ 132,928

Supplemental Guarantor _ Non-_3

Supplemental Guarantor / Non-Guarantor Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in ThousandsMar. 31, 2021Dec. 31, 2020
Current assets:
Cash and cash equivalents $ 19,753 $ 21,990
Accounts receivable62,918 62,515
Prepaid and other current assets9,502 9,487
Total current assets92,173 93,992
Properties and equipment, net1,432,799 1,450,685
Operating lease right-of-use assets, net2,912 2,979
Net investment in leases206,124 166,316
Investment in subsidiaries0 0
Intangible assets, net83,813 87,315
Goodwill223,650 234,684
Equity method investments118,265 120,544
Other assets10,790 11,050
Total assets2,170,526 2,167,565
Current liabilities:
Accounts payable40,359 46,400
Accrued interest4,661 10,892
Deferred revenue14,089 11,368
Accrued property taxes5,250 3,992
Current operating lease liabilities882 875
Current finance lease liabilities3,668 3,713
Other current liabilities2,989 2,505
Total current liabilities71,898 79,745
Long-term debt1,388,335 1,405,603
Noncurrent operating lease liabilities2,404 2,476
Noncurrent finance lease liabilities67,309 68,047
Other long-term liabilities11,907 12,905
Deferred revenue35,314 40,581
Class B unit53,743 52,850
Equity - partners405,976 379,292
Equity - noncontrolling interests133,640 126,066
Total liabilities and equity2,170,526 2,167,565
Eliminations
Current assets:
Cash and cash equivalents0 0
Accounts receivable(302)(315)
Prepaid and other current assets0 0
Total current assets(302)(315)
Properties and equipment, net0 0
Operating lease right-of-use assets, net0 0
Net investment in leases0 0
Investment in subsidiaries(2,084,012)(2,076,691)
Intangible assets, net0 0
Goodwill0 0
Equity method investments0 0
Other assets0 0
Total assets(2,084,314)(2,077,006)
Current liabilities:
Accounts payable(302)(315)
Accrued interest0 0
Deferred revenue0 0
Accrued property taxes0 0
Current operating lease liabilities0 0
Current finance lease liabilities0 0
Other current liabilities0 0
Total current liabilities(302)(315)
Long-term debt0 0
Noncurrent operating lease liabilities0 0
Noncurrent finance lease liabilities0 0
Other long-term liabilities0 0
Deferred revenue0 0
Class B unit0 0
Equity - partners(2,084,012)(2,076,691)
Equity - noncontrolling interests0 0
Total liabilities and equity(2,084,314)(2,077,006)
Parent
Current assets:
Cash and cash equivalents2,125 1,627
Accounts receivable0 0
Prepaid and other current assets501 349
Total current assets2,626 1,976
Properties and equipment, net0 0
Operating lease right-of-use assets, net0 0
Net investment in leases0 0
Investment in subsidiaries1,793,064 1,789,808
Intangible assets, net0 0
Goodwill0 0
Equity method investments0 0
Other assets3,671 4,268
Total assets1,799,361 1,796,052
Current liabilities:
Accounts payable0 0
Accrued interest4,661 10,892
Deferred revenue0 0
Accrued property taxes0 0
Current operating lease liabilities0 0
Current finance lease liabilities0 0
Other current liabilities129 5
Total current liabilities4,790 10,897
Long-term debt1,388,335 1,405,603
Noncurrent operating lease liabilities0 0
Noncurrent finance lease liabilities0 0
Other long-term liabilities260 260
Deferred revenue0 0
Class B unit0 0
Equity - partners405,976 379,292
Equity - noncontrolling interests0 0
Total liabilities and equity1,799,361 1,796,052
Guarantor Restricted Subsidiaries
Current assets:
Cash and cash equivalents(838)(987)
Accounts receivable54,301 56,522
Prepaid and other current assets8,252 8,366
Total current assets61,715 63,901
Properties and equipment, net1,054,969 1,087,184
Operating lease right-of-use assets, net2,773 2,822
Net investment in leases206,124 166,316
Investment in subsidiaries290,948 286,883
Intangible assets, net83,813 87,315
Goodwill223,650 234,684
Equity method investments79,301 81,089
Other assets7,119 6,782
Total assets2,010,412 2,016,976
Current liabilities:
Accounts payable22,978 30,252
Accrued interest0 0
Deferred revenue13,589 10,868
Accrued property taxes3,488 2,915
Current operating lease liabilities810 804
Current finance lease liabilities3,668 3,713
Other current liabilities2,848 2,491
Total current liabilities47,381 51,043
Long-term debt0 0
Noncurrent operating lease liabilities2,404 2,476
Noncurrent finance lease liabilities67,309 68,047
Other long-term liabilities11,197 12,171
Deferred revenue35,314 40,581
Class B unit53,743 52,850
Equity - partners1,793,064 1,789,808
Equity - noncontrolling interests0 0
Total liabilities and equity2,010,412 2,016,976
Non-Guarantor Non-Restricted Subsidiaries
Current assets:
Cash and cash equivalents18,466 21,350
Accounts receivable8,919 6,308
Prepaid and other current assets749 772
Total current assets28,134 28,430
Properties and equipment, net377,830 363,501
Operating lease right-of-use assets, net139 157
Net investment in leases0 0
Investment in subsidiaries0 0
Intangible assets, net0 0
Goodwill0 0
Equity method investments38,964 39,455
Other assets0 0
Total assets445,067 431,543
Current liabilities:
Accounts payable17,683 16,463
Accrued interest0 0
Deferred revenue500 500
Accrued property taxes1,762 1,077
Current operating lease liabilities72 71
Current finance lease liabilities0 0
Other current liabilities12 9
Total current liabilities20,029 18,120
Long-term debt0 0
Noncurrent operating lease liabilities0 0
Noncurrent finance lease liabilities0 0
Other long-term liabilities450 474
Deferred revenue0 0
Class B unit0 0
Equity - partners290,948 286,883
Equity - noncontrolling interests133,640 126,066
Total liabilities and equity $ 445,067 $ 431,543
5% Senior Notes
Condensed Financial Statements, Captions [Line Items]
Stated interest rate, senior notes5.00%

Supplemental Guarantor _ Non-_4

Supplemental Guarantor / Non-Guarantor Financial Information - Condensed Consolidating Statement Of Income (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Revenues:
Revenues: $ 127,183 $ 127,854
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)41,365 34,981
Depreciation and amortization25,065 23,978
General and administrative2,968 2,702
Goodwill impairment11,034 0
Total operating costs and expenses80,432 61,661
Operating income46,751 66,193
Equity in earnings of subsidiaries0 0
Equity in earnings of equity method investments1,763 1,714
Interest expense(13,240)(17,767)
Interest income6,548 2,218
Loss on early extinguishment of debt0 (25,915)
Gain on sales-type leases24,650 0
Gain on sale of assets and other502 506
Total other income (expense)20,223 (39,244)
Income before income taxes66,974 26,949
State income tax expense(37)(37)
Net income66,937 26,912
Allocation of net income attributable to noncontrolling interests(2,540)(2,051)
Net income attributable to the partners64,397 24,861
Parent
Revenues:
Revenues:0 0
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)0 0
Depreciation and amortization0
General and administrative1,178 1,099
Goodwill impairment0
Total operating costs and expenses1,178 1,099
Operating income(1,178)(1,099)
Equity in earnings of subsidiaries77,809 68,535
Equity in earnings of equity method investments 0
Interest expense(12,234)(16,730)
Interest income 0
Loss on early extinguishment of debt(25,915)
Gain on sales-type leases0
Gain on sale of assets and other0 70
Total other income (expense)65,575 25,960
Income before income taxes64,397 24,861
State income tax expense0 0
Net income64,397 24,861
Allocation of net income attributable to noncontrolling interests0 0
Net income attributable to the partners64,397 24,861
Guarantor Restricted Subsidiaries
Revenues:
Revenues:114,752 113,910
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)37,799 31,131
Depreciation and amortization20,836 19,753
General and administrative1,790 1,603
Goodwill impairment11,034
Total operating costs and expenses71,459 52,487
Operating income43,293 61,423
Equity in earnings of subsidiaries4,136 4,295
Equity in earnings of equity method investments618 2,088
Interest expense(1,006)(1,037)
Interest income6,548 2,218
Loss on early extinguishment of debt0
Gain on sales-type leases24,650
Gain on sale of assets and other501 420
Total other income (expense)35,447 7,984
Income before income taxes78,740 69,407
State income tax expense(37)(37)
Net income78,703 69,370
Allocation of net income attributable to noncontrolling interests(893)(835)
Net income attributable to the partners77,810 68,535
Non-Guarantor Non-Restricted Subsidiaries
Revenues:
Revenues:12,431 13,944
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)3,566 3,850
Depreciation and amortization4,229 4,225
General and administrative0 0
Goodwill impairment0
Total operating costs and expenses7,795 8,075
Operating income4,636 5,869
Equity in earnings of subsidiaries0 0
Equity in earnings of equity method investments1,145 (374)
Interest expense0 0
Interest income0 0
Loss on early extinguishment of debt0
Gain on sales-type leases0
Gain on sale of assets and other1 16
Total other income (expense)1,146 (358)
Income before income taxes5,782 5,511
State income tax expense0 0
Net income5,782 5,511
Allocation of net income attributable to noncontrolling interests(1,647)(1,216)
Net income attributable to the partners4,135 4,295
Eliminations
Revenues:
Revenues:0 0
Operating costs and expenses:
Operations (exclusive of depreciation and amortization)0 0
Depreciation and amortization0 0
General and administrative0 0
Goodwill impairment0
Total operating costs and expenses0 0
Operating income0 0
Equity in earnings of subsidiaries(81,945)(72,830)
Equity in earnings of equity method investments0 0
Interest expense0 0
Interest income0 0
Loss on early extinguishment of debt0
Gain on sales-type leases0
Gain on sale of assets and other0 0
Total other income (expense)(81,945)(72,830)
Income before income taxes(81,945)(72,830)
State income tax expense0 0
Net income(81,945)(72,830)
Allocation of net income attributable to noncontrolling interests0 0
Net income attributable to the partners(81,945)(72,830)
Affiliates
Revenues:
Revenues:101,926 101,428
Affiliates | Parent
Revenues:
Revenues:0 0
Affiliates | Guarantor Restricted Subsidiaries
Revenues:
Revenues:95,701 94,755
Affiliates | Non-Guarantor Non-Restricted Subsidiaries
Revenues:
Revenues:6,225 6,673
Affiliates | Eliminations
Revenues:
Revenues:0 0
Third parties
Revenues:
Revenues:25,257 26,426
Third parties | Parent
Revenues:
Revenues:0 0
Third parties | Guarantor Restricted Subsidiaries
Revenues:
Revenues:19,051 19,155
Third parties | Non-Guarantor Non-Restricted Subsidiaries
Revenues:
Revenues:6,206 7,271
Third parties | Eliminations
Revenues:
Revenues: $ 0 $ 0