LEASES

3 Months Ended

Mar. 31, 2022

Note 2: 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 and the weighted-average lease terms and discount rates are as follows:



		March 31	December 31	March 31
dollars in millions	Classification on the Balance Sheet	2022	2021	2021
Assets
Operating lease ROU assets		$ 768.1	$ 771.1	$ 488.6
Accumulated amortization		(88.4)	(79.7)	(67.0)
Operating leases, net	Operating lease right-of-use assets, net	679.7	691.4	421.6
Finance lease assets		128.6	129.2	10.6
Accumulated amortization		(12.8)	(8.8)	(2.2)
Finance leases, net	Property, plant & equipment, net	115.8	120.4	8.4
Total lease assets		$ 795.5	$ 811.8	$ 430.0
Liabilities
Current
Operating	Other current liabilities	$ 50.2	$ 49.2	$ 38.1
Finance	Other current liabilities	33.4	35.4	2.7
Noncurrent
Operating	Noncurrent operating lease liabilities	631.7	642.5	397.3
Finance	Other noncurrent liabilities	55.2	60.5	5.7
Total lease liabilities		$ 770.5	$ 787.6	$ 443.8
Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases		20.7	21.0	9.2
Finance leases		3.2	3.3	4.0
Weighted-average discount rate
Operating leases		3.8%	3.8%	3.3%
Finance leases		1.4%	1.3%	1.3%

The increases from March 31, 2021 in ROU assets and liabilities presented above primarily relate to the acquisition of U.S. Concrete (see Note 16 for additional information). Our lease agreements do not contain residual value guarantees, restrictive covenants or early termination options that we deem material. We have not sought or been granted any material lease concessions as a result of the COVID-19 pandemic.

The components of lease expense are as follows:



	Three Months Ended
	March 31
in millions	2022	2021
Lease Cost
Finance lease cost
Amortization of right-of-use assets	$ 4.4	$ 0.6
Interest on lease liabilities	0.3	0.0
Operating lease cost	23.0	15.3
Short-term lease cost ¹	10.3	5.1
Variable lease cost	1.8	2.7
Sublease income	(0.8)	(0.8)
Total lease cost	$ 39.0	$ 22.9


¹	Our short-term lease cost includes 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 $20.9 million and $14.5 million for the three months ended March 31, 2022 and 2021, respectively. Cash paid for finance leases was $8.5 million and $0.6 million for the three months ended March 31, 2022 and 2021, respectively.