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LEASE OBLIGATIONS | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
LEASE OBLIGATIONS | Our operating leases consist primarily of leases for office space, iron ore vessels, rail cars, processing equipment and mining equipment. Our finance leases consist primarily of processing equipment and mining equipment. We use our incremental borrowing rate as the discount rate to determine the present value of the lease payments, as our leases do not have readily determinable implicit discount rates. 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:
| (In Millions)
| Year Ended December 31,
| 2020 |  | 2019
Operating leases | $ | 43 |  |  | $ | 4 |
Finance leases: |  |  |
Amortization of lease cost | 15 |  |  | 6 |
Interest on lease liabilities | 4 |  |  | 2 |
Short-term leases | 13 |  |  | 6 |
Total | $ | 75 |  |  | $ | 18 |
Other information related to leases was as follows:
| (In Millions)
| Year Ended December 31,
| 2020 |  | 2019
Cash paid for amounts included in measurement of lease liabilities: |  |  |
Operating leases within cash flows from operating activities | $ | 43 |  |  | $ | 4 |
Finance leases within cash flows from operating activities | $ | 4 |  |  | $ | 2 |
Finance leases within cash flows from financing activities | $ | 15 |  |  | $ | 6 |
Right-of-use assets obtained in exchange for new finance lease liabilities 1 | $ | 44 |  |  | $ | 29 |
Weighted-average remaining lease term - operating leases (in years) | 8 |  | 10
Weighted-average remaining lease term - finance leases (in years) | 5 |  | 6
Weighted-average discount rate - operating leases | 8 | % |  | 8 | %
Weighted-average discount rate - finance leases | 4 | % |  | 5 | %
1 Right-of-use assets obtained in the Acquisitions are not included in this figure.
Future minimum lease payments under noncancellable finance and operating leases as of December 31, 2020 were as follows:
| (In Millions)
| Finance Leases |  | Operating Leases
2021 | $ | 100 |  |  | $ | 70 |
2022 | 95 |  |  | 53 |
2023 | 78 |  |  | 46 |
2024 | 23 |  |  | 38 |
2025 | 22 |  |  | 34 |
Thereafter | 76 |  |  | 122 |
Total future minimum lease payments | 394 |  |  | 363 |
Less: imputed interest | 59 |  |  | 99 |
Total lease payments | 335 |  |  | 264 |
Less: current portion of lease liabilities | 91 |  |  | 53 |
Long-term lease liabilities | $ | 244 |  |  | $ | 211 |
The current and long-term portions of our finance lease liabilities are included in Other current liabilities and Other non-current liabilities, respectively. The current and long-term portions of our operating lease liabilities are included in Other current liabilities and Other non-current liabilities, respectively.

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- Definition Lessee, Financing and Operating Leases Disclosure + References No definition available. + Details
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