LEASES

12 Months Ended

Dec. 31, 2022

NOTE 21. LEASES

Our lease commitments are primarily for railcars, but also include logistics, manufacturing, storage, real estate and information technology assets. Our leases have remaining lease terms of up to 92 years (15 years excluding land leases), some of which may include options to extend the leases for up to five years, and some of which may include options to terminate the leases within one year.

The amounts for leases included in our consolidated balance sheets include:


		December 31,
		2022		2021
Lease assets:	Balance sheet location:	($ in millions)
Operating	Operating lease assets, net	$	356.0	$	372.4
Finance	Property, plant and equipment, less accumulated depreciation(1)	2.4		3.4
Total lease assets		$	358.4	$	375.8
Lease liabilities:
Current
Operating	Current operating lease liabilities	$	71.8	$	76.8
Finance	Current installments of long-term debt	1.0		1.1
Long-term
Operating	Operating lease liabilities	292.5		302.0
Finance	Long-term debt	0.9		1.9
Total lease liabilities		$	366.2	$	381.8

(1) As of December 31, 2022 and 2021, assets recorded under finance leases were $7.6 million for both years and accumulated depreciation associated with finance leases was $5.2 million and $4.3 million, respectively.

The components of lease expense are recorded to cost of goods sold and selling and administration expenses in the consolidated statement of operations, excluding interest on finance lease liabilities which is recorded to interest expense. The components of lease expense were as follows:


	Years Ended December 31,
	2022		2021		2020
Lease expense:	($ in millions)
Operating	$	93.4	$	97.1	$	96.0
Other operating lease expense(1)	32.5		28.7		24.3
Finance:
Depreciation of leased assets	1.0		1.1		1.3
Interest on lease liabilities	0.1		0.1		0.2
Total lease expense	$	127.0	$	127.0	$	121.8

(1) Includes costs associated with short-term leases and variable lease expenses.

The maturities of lease liabilities were as follows:


	December 31, 2022
	Operating leases		Finance leases		Total
	($ in millions)
2023	$	81.8	$	1.0	$	82.8
2024	68.1		0.8		68.9
2025	58.4		0.2		58.6
2026	45.4		—		45.4
2027	35.3		—		35.3
Thereafter	138.3		—		138.3
Total lease payments	427.3		2.0		429.3
Less: Imputed interest(1)	(63.0)		(0.1)		(63.1)
Present value of lease liabilities	$	364.3	$	1.9	$	366.2

(1) Calculated using the discount rate for each lease.

Other information related to leases was as follows:


	Years Ended December 31,
	2022			2021			2020
Supplemental cash flows information:	($ in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	93.1		$	97.4		$	95.9
Operating cash flows from finance leases	0.1			0.1			0.2
Financing cash flows from finance leases	1.1			1.1			2.1
Non-cash increase in lease assets and lease liabilities:
Operating leases	$	71.8		$	56.7		$	70.5
Finance leases	—			0.1			1.1

	December 31,
Weighted-average remaining lease term:	2022			2021			2020
Operating leases	9.1 years			9.3 years			9.5 years
Finance leases	1.6 years			2.4 years			3.1 years
Weighted-average discount rate:
Operating leases	3.4		%	3.1		%	3.0		%
Finance leases	3.6		%	3.4		%	3.3		%

As of December 31, 2022, we have additional operating leases that have not yet commenced of approximately $2 million which are expected to commence during 2023 with lease terms between 2 years and 5 years.