Leases

12 Months Ended

Dec. 31, 2022

13. Leases

The Company's operating leases consist primarily of leases for land, office space, equipment, railcars and locomotives. Certain of our long-term leases include one or more options to renew or to terminate, with renewal terms that can extend the lease term from one month to 50 years. The Company's finance leases are immaterial to our consolidated financial statements.

The components of lease expense were as follows:


	Year ended December 31, 2022		Year ended December 31, 2021
	(Dollars in millions)
Operating leases:
Cost of products sold and operating expenses	$	2.3	$	1.9
Selling, general and administrative expenses	0.4		0.5
	$	2.7	$	2.4




Short-term leases:
Cost of products sold and operating expenses(1)(2)	5.5		6.0
Total lease expense	$	8.2	$	8.4

(1)Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond one month.

(2)Includes variable lease expenses, which are immaterial to the consolidated financial statements.

Supplemental balance sheet information related to leases was as follows:


	Financial Statement Classification	December 31, 2022		December 31, 2021
		(Dollars in millions)

Operating ROU assets	Deferred charges and other assets	$	11.3	$	12.9

Operating lease liabilities:
Current operating lease liabilities	Accrued liabilities	$	2.0	$	1.9
Noncurrent operating lease liabilities	Other deferred credits and liabilities	8.5		9.8
Total operating lease liabilities		$	10.5	$	11.7

The weighted average remaining lease term and weighted average discount rate were as follows:


	December 31, 2022		December 31, 2021
Weighted average remaining lease term of operating leases	5.9 years		6.7 years
Weighted average discount rate of operating leases	4.2	%	4.2	%

Supplemental cash flow information related to leases was as follows:


	Year Ended December 31, 2022		Year Ended December 31, 2021
	(Dollars in millions)
Operating cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	2.4	$	2.7
Non-cash activity:
ROU assets obtained in exchange for new operating lease liabilities	$	0.6	$	3.9

Maturities of operating lease liabilities as of December 31, 2022 are as follows:


	(Dollars in millions)
Year ending December 31:
2023	$	2.4
2024	2.2
2025	2.1
2026	1.5
2027	1.2
2028-Thereafter	2.5
Total lease payments	11.9
Less: imputed interest	1.4
Total lease liabilities	$	10.5