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: | | | | | | | | | | | | | | | | | | | | | | September 30 | | | December 31 | | | September 30 | | dollars in millions | Classification on the Balance Sheet | 2022 | | | 2021 | | | 2021 | | Assets 1 | | | | | | | | | Operating lease ROU assets | | $ 778.8 | | | $ 771.1 | | | $ 728.8 | | Accumulated amortization | | (89.6) | | | (79.7) | | | (71.9) | | Operating leases, net | Operating lease right-of-use assets, net | 689.2 | | | 691.4 | | | 656.9 | | Finance lease assets | | 111.2 | | | 129.2 | | | 125.6 | | Accumulated depreciation | | (12.6) | | | (8.8) | | | (5.0) | | Finance leases, net | Property, plant & equipment, net | 98.6 | | | 120.4 | | | 120.6 | | Total lease assets | | $ 787.8 | | | $ 811.8 | | | $ 777.5 | | Liabilities 1 | | | | | | | | | Current | | | | | | | | | Operating | Other current liabilities | $ 51.9 | | | $ 49.2 | | | $ 48.7 | | Finance | Other current liabilities | 27.7 | | | 35.4 | | | 38.4 | | Noncurrent | | | | | | | | | Operating | Noncurrent operating lease liabilities | 643.3 | | | 642.5 | | | 622.3 | | Finance | Other noncurrent liabilities | 45.9 | | | 60.5 | | | 63.2 | | Total lease liabilities | | $ 768.8 | | | $ 787.6 | | | $ 772.6 | | Lease Term and Discount Rate | | | | | | | | | Weighted-average remaining lease term (years) | | | | | | | | | Operating leases | 20.1 | | | 21.0 | | | 21.0 | | Finance leases | 3.1 | | | 3.3 | | | 3.4 | | Weighted-average discount rate | | | | | | | | | Operating leases | 3.7% | | | 3.8% | | | 3.9% | | Finance leases | 1.6% | | | 1.3% | | | 1.2% | |
| | 1 | Includes lease assets and liabilities that are classified as held for sale as detailed in Note 16. | | |
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 | | | Nine Months Ended | | September 30 | | | September 30 | in millions | 2022 | | | 2021 | | | 2022 | | | 2021 | Lease Cost | | | | | | | | | | | Finance lease cost | | | | | | | | | | | Depreciation of right-of-use assets | $ 4.2 | | | $ 0.8 | | | $ 12.9 | | | $ 2.2 | Interest on lease liabilities | 0.2 | | | 0.2 | | | 0.9 | | | 0.2 | Operating lease cost | 21.7 | | | 18.4 | | | 65.6 | | | 49.2 | Short-term lease cost 1 | 12.3 | | | 7.7 | | | 32.8 | | | 17.9 | Variable lease cost | 4.7 | | | 2.2 | | | 8.9 | | | 7.7 | Sublease income | (0.6) | | | (0.6) | | | (2.2) | | | (2.4) | Total lease cost | $ 42.5 | | | $ 28.7 | | | $ 118.9 | | | $ 74.8 |
| | 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 $60.0 million and $44.6 million for the nine months ended September 30, 2022 and 2021, respectively. Cash paid for finance leases (principal and interest) was $28.0 million and $4.8 million for the nine months ended September 30, 2022 and 2021, respectively.
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