We lease certain equipment, office space and land. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet.

Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or sometimes more. The exercise of lease renewal options is at our sole discretion and we consider these options in determining the lease term used to establish our right-of-use assets and lease liabilities. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option reasonably certain of exercise.

We determine that a contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In evaluating whether we have the right to control the use of an identified asset, we assess whether or not we have the right to control the use of the identified asset and to obtain substantially all of the economic benefit from the use of the identified asset.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

Certain of our lease agreements include payments that adjust periodically for consumption of goods provided by the right-of-use asset in excess of contractually determined minimum amounts and for inflation. These variable lease payments are not significant. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental statement of earnings information related to our leases is as follows (in thousands):

		Year Ended December 31,
	Statement of Earnings Classification	2022		2021		2020
Operating lease cost	Cost of products sold	$	23,666	$	21,503	$	20,959
Operating lease cost	Marketing, administrative and other expenses		3,239		2,989		3,060
Total operating lease cost		$	26,905	$	24,492	$	24,019
Finance lease cost:
Amortization of leased assets	Cost of products sold	$	19,113	$	13,513	$	9,735
Interest on lease liabilities	Interest expense, net		12,229		10,670		10,551
Total finance lease cost		$	31,342	$	24,183	$	20,286
Total lease cost		$	58,247	$	48,675	$	44,305

Supplemental cash flow information related to our leases is as follows (in thousands):

	Year Ended December 31,
	2022		2021		2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	26,518	$	27,310	$	23,836
Operating cash flows from finance leases	$	12,229	$	10,670	$	10,551
Financing cash flows from finance leases	$	16,008	$	11,425	$	9,541
Non-cash investing and financing activities:
Additions to right-of-use assets obtained from
Operating lease liabilities	$	33,924	$	19,711	$	21,539
Finance lease liabilities	$	27,030	$	99,535	$	14,373

Supplemental balance sheet information related to our leases is as follows (in thousands):

		December 31,
	Balance Sheet Classification	2022		2021
Assets:
Operating lease	Other assets	$	101,499	$	92,318
Finance lease	Property, plant and equipment, net		169,076		162,427
Total leased		$	270,575	$	254,745
Liabilities:
Current operating	Accrued expenses and other current liabilities	$	23,621	$	20,598
Current finance	Current portion of long-term debt and finance lease obligations		18,582		14,678
Non-current operating	Deferred credits and other liabilities		81,455		74,161
Non-current finance	Long-term debt and finance lease obligations due after one year		169,804		164,375
Total leased		$	293,462	$	273,812

Weighted-average remaining lease term and discount rate for our leases are as follows:

The reason for the substantial weighted-average discount rate – finance leases, of 12.9%, is due to Nucor’s past accounting for the respective finance leases under the former accounting guidance for capital leases. Pursuant to the former lease accounting guidance, the recognition of a capital lease asset and associated capital lease liability could not exceed the fair market value of the leased asset at the lease commencement. Accordingly, the incremental borrowing rate was adjusted upward so that the present value of the minimum lease payments would equal the fair value of the asset.

Maturities of lease liabilities by year for our leases were as follows as of December 31, 2022 (in thousands):

	Operating Leases			Finance Leases
Maturities of lease liabilities, year ending December 31,
2023	$	26,415		$	27,243
2024		23,218			22,158
2025		17,262			19,826
2026		14,014			18,139
2027		8,946			17,758
Thereafter		32,827			169,858
Total lease payments	$	122,682		$	274,982
Less imputed interest		(17,605	)		(86,596	)
Present value of lease liabilities	$	105,077		$	188,386