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Annual report pursuant to Section 13 and 15(d)

LEASE OBLIGATIONS

v3.24.0.1
LEASE OBLIGATIONS
 12 Months Ended
Dec. 31, 2023
Leases [Abstract] 听
Lease Obligations
NOTE 12 - LEASE OBLIGATIONS
Our operating leases consist primarily of leases for land, office space, rail cars and storage tanks. Our finance leases consist primarily of mining equipment and rail cars. When an implicit discount rate is not readily determinable under our leases, we use our incremental borrowing rate as the discount rate to determine the present value of the lease payments. Our incremental borrowing rate is the rate of interest that we would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment to pay our lease obligations. We determine the incremental borrowing rates for our leases by adjusting the local risk-free interest rate with a credit risk premium corresponding to our credit rating. From time to time, we may enter into arrangements for the construction or purchase of an asset and then enter into a financing arrangement to lease the asset. We recognize leased assets and liabilities under these arrangements when we obtain control of the asset.
Lease costs are presented below:
Year Ended December 31,
(In millions) 2023 2022
Operating leases $ 59听 $ 64听
Finance leases:
Amortization of right-of-use assets 92听 103听
Interest on lease liabilities 11听 8听
Short-term leases 171听 160听
Total $ 333听 $ 335听
Lease terms and discount rates are shown below:
December 31,
(In millions) 2023
Weighted average lease term (in years):
Operating leases 8
Finance leases 7
Weighted average discount rate:
Operating leases 8听 %
Finance leases 6听 %
Other information related to leases was as follows:
Year Ended December 31,
(In millions) 2023 2022 2021
Cash paid for amounts included in measurement of lease liabilities:
Operating leases within cash flows from operating activities $ 57 $ 62 $ 70
Finance leases within cash flows from operating activities 11 8 9
Finance leases within cash flows from financing activities 92 96 94
Right-of-use assets obtained in exchange for new finance lease liabilities 93 55 50
Future minimum lease payments under noncancellable finance and operating leases as of December听31, 2023 were as follows:
(In millions) Finance Leases Operating Leases
2024 $ 53听 $ 56听
2025 49听 49听
2026 39听 42听
2027 27听 38听
2028 25听 29听
Thereafter 74听 117听
Total future minimum lease payments 267听 331听
Less: imputed interest 52听 93听
Total lease payments 215听 238听
Less: current portion of lease liabilities 49听 41听
Long-term lease liabilities $ 166听 $ 197听
The current and long-term portions of our finance and operating lease liabilities are included in Other current liabilities and Other non-current liabilities, respectively.