Leases

12 Months Ended

Dec. 31, 2023

Operating and Finance Leases [Text Block]

LEASES

Leasing Activity

We have operating and finance leases for heavy mobile equipment, railcars, fleet vehicles, field and plant equipment, river and cross-gulf vessels, corporate offices, land, and computer equipment. Our leases have remaining lease terms of one year to 39 years, some of which include options to extend the lease for up to 20 years and some of which include options to terminate the lease within one year.

Supplemental balance sheet information related to leases as of December 31, 2023 and December 31, 2022 is as follows:


	December 31,
Type of Lease Asset or Liability	2023		2022		Balance Sheet Classification
	(in millions)
Operating Leases
Right-of-use assets	$	229.8	$	182.5	Other assets
Lease liabilities:
Short-term	65.3		50.7		Accrued liabilities
Long-term	168.1		135.2		Other noncurrent liabilities
Total	$	233.4	$	185.9
Finance Leases
Right-of-use assets:
Gross assets	$	459.7	$	484.2
Less: accumulated depreciation	171.3		166.1
Net assets	$	288.4	$	318.1	Property, plant and equipment, net
Lease liabilities:
Short-term	$	112.7	$	71.4	Current maturities of long-term debt
Long-term	67.3		122.9		Long-term debt, less current maturities
Total	$	180.0	$	194.3

Lease expense is generally included within cost of goods sold and selling, general and administrative expenses, except for interest on lease liabilities, which is recorded within net interest. The components of lease expense were as follows:


	December 31,
(in millions)	2023		2022		2021
Operating lease cost	$	86.9	$	86.6	$	78.8
Finance lease cost:
Amortization of right-of-use assets	45.8		45.9		40.6
Interest on lease liabilities	7.1		5.3		6.3
Short-term lease cost	0.1		0.8		3.1
Variable lease cost	19.8		19.3		19.2
Total lease cost	$	159.7	$	157.9	$	148.0

Rental expense for 2023, 2022 and 2021 was $252.1 million, $237.2 million and $211.8 million, respectively.

Supplemental cash flow information related to leases was as follows:


	December 31,
(In millions)	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	89.2	$	88.1	$	78.8
Operating cash flows from finance leases	7.1		5.3		6.3
Financing cash flows from finance leases	78.8		46.5		142.5

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	54.5	$	56.7	$	18.4
Finance leases	35.8		27.2		8.9

Other information related to leases was as follows:


	December 31, 2023
Weighted Average Remaining Lease Term
Operating leases	6.4 years
Finance leases	2.4 years

Weighted Average Discount Rate
Operating leases	7.3	%
Finance leases	4.2	%

Future lease payments under non-cancellable leases recorded as of December 31, 2023, were as follows:


	Operating Leases		Finance Leases
(in millions)
2024	$	79.8	$	119.2
2025	57.0		34.9
2026	38.6		16.9
2027	28.2		11.7
2028	23.2		6.0
Thereafter	63.5		5.8
Total future lease payments	$	290.3	$	194.5
Less imputed interest	(56.9)		(14.5)
Total	$	233.4	$	180.0