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LEASES
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES LEASES
Our portfolio of nonmineral leases is composed of leases for real estate (including office buildings, aggregates sales yards and terminals, and concrete and asphalt sites) and equipment (including railcars and rail track, barges, and office, plant and mobile equipment).
Lease right-of-use (ROU) assets and liabilities reflected on our December 31 balance sheets and the weighted-average lease terms and discount rates are as follows:
dollars in millionsClassification on the Balance Sheet20242023
Assets
Operating lease ROU assets$673.2 $636.1 
Accumulated amortization(146.8)(124.4)
Operating leases, netOperating lease right-of-use assets, net526.4 511.7 
Finance lease ROU assets54.7 62.3 
Accumulated depreciation(24.3)(20.2)
Finance leases, netProperty, plant & equipment, net30.4 42.1 
Total lease assets$556.8 $553.8 
Liabilities
Current
OperatingOther current liabilities$49.3 $47.3 
FinanceOther current liabilities10.7 12.5 
Noncurrent
Operating Noncurrent operating lease liabilities521.4 507.4 
FinanceOther noncurrent liabilities9.7 16.6 
Total lease liabilities$591.1 $583.8 
Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases18.919.5
Finance leases2.22.5
Weighted-average discount rate
Operating leases4.5 %4.3 %
Finance leases3.2 %2.4 %
Our lease agreements do not contain material residual value guarantees, restrictive covenants or early termination options. In addition to the lease assets and liabilities presented in the table above, we entered into an agreement to lease a terminal in California and expect to have all permits in place associated with all lease commencement options by the second quarter of 2025.
Our building leases have remaining noncancelable periods of 0 - 14 years and lease terms (including options to extend) of 1 - 22 years. Key factors in determining the certainty of lease renewals include the location of the building, the value of leasehold improvements and the cost to relocate. Rental payments for certain of our building leases are periodically adjusted for inflation, and this variable component is recognized as expense when incurred. Many of our building leases contain common area maintenance charges which we include in the calculation of our lease liability (the lease consideration is not allocated between the lease and non-lease components).
Our aggregates sales yard leases have remaining noncancelable periods of 0 - 24 years and lease terms of 1 - 74 years. The key factor in determining the certainty of lease renewals is the financial impact of extending the lease, including the reserve life of the sourcing aggregates quarry. Certain aggregates sales yard lease agreements include rental payments based on a percentage of sales over contractual levels or the number of shipments received into the sales yard. Variable payments for these sales yards comprise a majority of the overall variable lease cost presented in the table below.
Our concrete and asphalt site leases have remaining noncancelable periods of 0 - 15 years and lease terms of 0 - 74 years. The key factor in determining the certainty of lease renewals is the financial impact of extending the lease, including the reserve life of the sourcing aggregates quarry. Rental payments are generally fixed for our concrete and asphalt sites.
Our rail (car and track) leases have remaining noncancelable periods of 0 - 15 years and lease terms of 0 - 60 years. Key factors in determining the certainty of lease renewals include the market rental rate for comparable assets and, in some cases, the cost incurred to restore the asset. Rental payments are fixed for our rail leases. The majority of our rail leases contain substitution rights that allow the supplier to replace damaged equipment. Because these rights are generally limited to either replacing railcars or moving our placement on rail track for purposes of repair or maintenance, we do not consider these substitution rights to be substantive and have recorded a lease liability and ROU asset for all leased rail.
Our barge leases have remaining noncancelable periods of 3 - 4 years and lease terms of 10 - 18 years. Key factors in determining the certainty of lease renewals include the market rental rate for comparable assets and, in some cases, the cost incurred to restore the asset. Rental payments are fixed. Like our rail leases, our barge leases contain non-substantive substitution rights that are limited to replacing barges in need of repair or maintenance.
Office, plant and mobile equipment leases have remaining noncancelable periods of 0 - 5 years and lease terms of 0 - 5 years. The key factor in determining the certainty of lease renewals is the market rental rate for comparable assets. Rental payments are generally fixed for our equipment leases with terms greater than 1 year. The significant majority of our short-term lease cost presented in the table below is derived from office and plant equipment leases with terms of 1 year or less.
The components of lease expense for the years ended December 31, 2024, 2023 and 2022 are as follows:
in millions202420232022
Finance lease cost
Depreciation of right-of-use assets$9.5 $12.8 $16.5 
Interest on lease liabilities0.7 0.9 1.2 
Operating lease cost75.6 77.5 85.6 
Short-term lease cost 1
46.9 50.4 46.4 
Variable lease cost20.6 23.5 14.4 
Sublease income(2.8)(3.4)(2.9)
Total lease expense$150.5 $161.7 $161.2 
1Includes the cost of leases with an initial term of one year or less (including those with terms of one month or less).
Cash paid for operating leases was $73.8 million and $73.0 million for 2024 and 2023, respectively. Cash paid for finance leases (principal and interest) was $13.7 million and $31.6 million for 2024 and 2023, respectively.
Maturity analysis on an undiscounted basis of our lease liabilities (see Note 12 for mineral lease payments) as of December 31, 2024 is as follows:
in millionsOperating
Leases		Finance
Leases
2025$73.8 $11.2 
202666.7 6.7 
202762.2 2.1 
202855.2 0.8 
202950.8 0.4 
Thereafter608.7 0.0 
Total minimum lease payments$917.4 $21.2 
Lease payments representing interest(346.7)(0.8)
Present value of future minimum lease payments$570.7 $20.4 
Current obligations under leases(49.3)(10.7)
Long-term lease obligations$521.4 $9.7 
LEASES LEASES
Our portfolio of nonmineral leases is composed of leases for real estate (including office buildings, aggregates sales yards and terminals, and concrete and asphalt sites) and equipment (including railcars and rail track, barges, and office, plant and mobile equipment).
Lease right-of-use (ROU) assets and liabilities reflected on our December 31 balance sheets and the weighted-average lease terms and discount rates are as follows:
dollars in millionsClassification on the Balance Sheet20242023
Assets
Operating lease ROU assets$673.2 $636.1 
Accumulated amortization(146.8)(124.4)
Operating leases, netOperating lease right-of-use assets, net526.4 511.7 
Finance lease ROU assets54.7 62.3 
Accumulated depreciation(24.3)(20.2)
Finance leases, netProperty, plant & equipment, net30.4 42.1 
Total lease assets$556.8 $553.8 
Liabilities
Current
OperatingOther current liabilities$49.3 $47.3 
FinanceOther current liabilities10.7 12.5 
Noncurrent
Operating Noncurrent operating lease liabilities521.4 507.4 
FinanceOther noncurrent liabilities9.7 16.6 
Total lease liabilities$591.1 $583.8 
Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases18.919.5
Finance leases2.22.5
Weighted-average discount rate
Operating leases4.5 %4.3 %
Finance leases3.2 %2.4 %
Our lease agreements do not contain material residual value guarantees, restrictive covenants or early termination options. In addition to the lease assets and liabilities presented in the table above, we entered into an agreement to lease a terminal in California and expect to have all permits in place associated with all lease commencement options by the second quarter of 2025.
Our building leases have remaining noncancelable periods of 0 - 14 years and lease terms (including options to extend) of 1 - 22 years. Key factors in determining the certainty of lease renewals include the location of the building, the value of leasehold improvements and the cost to relocate. Rental payments for certain of our building leases are periodically adjusted for inflation, and this variable component is recognized as expense when incurred. Many of our building leases contain common area maintenance charges which we include in the calculation of our lease liability (the lease consideration is not allocated between the lease and non-lease components).
Our aggregates sales yard leases have remaining noncancelable periods of 0 - 24 years and lease terms of 1 - 74 years. The key factor in determining the certainty of lease renewals is the financial impact of extending the lease, including the reserve life of the sourcing aggregates quarry. Certain aggregates sales yard lease agreements include rental payments based on a percentage of sales over contractual levels or the number of shipments received into the sales yard. Variable payments for these sales yards comprise a majority of the overall variable lease cost presented in the table below.
Our concrete and asphalt site leases have remaining noncancelable periods of 0 - 15 years and lease terms of 0 - 74 years. The key factor in determining the certainty of lease renewals is the financial impact of extending the lease, including the reserve life of the sourcing aggregates quarry. Rental payments are generally fixed for our concrete and asphalt sites.
Our rail (car and track) leases have remaining noncancelable periods of 0 - 15 years and lease terms of 0 - 60 years. Key factors in determining the certainty of lease renewals include the market rental rate for comparable assets and, in some cases, the cost incurred to restore the asset. Rental payments are fixed for our rail leases. The majority of our rail leases contain substitution rights that allow the supplier to replace damaged equipment. Because these rights are generally limited to either replacing railcars or moving our placement on rail track for purposes of repair or maintenance, we do not consider these substitution rights to be substantive and have recorded a lease liability and ROU asset for all leased rail.
Our barge leases have remaining noncancelable periods of 3 - 4 years and lease terms of 10 - 18 years. Key factors in determining the certainty of lease renewals include the market rental rate for comparable assets and, in some cases, the cost incurred to restore the asset. Rental payments are fixed. Like our rail leases, our barge leases contain non-substantive substitution rights that are limited to replacing barges in need of repair or maintenance.
Office, plant and mobile equipment leases have remaining noncancelable periods of 0 - 5 years and lease terms of 0 - 5 years. The key factor in determining the certainty of lease renewals is the market rental rate for comparable assets. Rental payments are generally fixed for our equipment leases with terms greater than 1 year. The significant majority of our short-term lease cost presented in the table below is derived from office and plant equipment leases with terms of 1 year or less.
The components of lease expense for the years ended December 31, 2024, 2023 and 2022 are as follows:
in millions202420232022
Finance lease cost
Depreciation of right-of-use assets$9.5 $12.8 $16.5 
Interest on lease liabilities0.7 0.9 1.2 
Operating lease cost75.6 77.5 85.6 
Short-term lease cost 1
46.9 50.4 46.4 
Variable lease cost20.6 23.5 14.4 
Sublease income(2.8)(3.4)(2.9)
Total lease expense$150.5 $161.7 $161.2 
1Includes the cost of leases with an initial term of one year or less (including those with terms of one month or less).
Cash paid for operating leases was $73.8 million and $73.0 million for 2024 and 2023, respectively. Cash paid for finance leases (principal and interest) was $13.7 million and $31.6 million for 2024 and 2023, respectively.
Maturity analysis on an undiscounted basis of our lease liabilities (see Note 12 for mineral lease payments) as of December 31, 2024 is as follows:
in millionsOperating
Leases		Finance
Leases
2025$73.8 $11.2 
202666.7 6.7 
202762.2 2.1 
202855.2 0.8 
202950.8 0.4 
Thereafter608.7 0.0 
Total minimum lease payments$917.4 $21.2 
Lease payments representing interest(346.7)(0.8)
Present value of future minimum lease payments$570.7 $20.4 
Current obligations under leases(49.3)(10.7)
Long-term lease obligations$521.4 $9.7