LEASES

12 Months Ended

Dec. 31, 2023

NOTE 22. 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 91 years (14 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,
		2023		2022
	Balance Sheet Location:	($ in millions)
Lease Assets
Operating	Operating lease assets, net	$	344.7	$	356.0
Finance	Property, plant and equipment, net(1)	—		2.4
Total lease assets		$	344.7	$	358.4

Lease Liabilities
Current
Operating	Current operating lease liabilities	$	69.3	$	71.8
Finance	Current installments of long-term debt	—		1.0
Long-term
Operating	Operating lease liabilities	283.1		292.5
Finance	Long-term debt	—		0.9
Total lease liabilities		$	352.4	$	366.2

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

The components of lease expense are recorded to cost of goods sold and selling and administrative 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,
	2023		2022		2021
Lease Expense	($ in millions)
Operating lease expense	$	88.4	$	93.4	$	97.1
Variable and short-term lease expense	24.6		32.5		28.7
Finance lease expense:
Depreciation of leased assets	0.5		1.0		1.1
Interest on lease liabilities	—		0.1		0.1
Total lease expense	$	113.5	$	127.0	$	127.0

Future maturities of operating lease liabilities as of December 31, 2023, are summarized below:


	Operating Leases
Future Lease Maturities	($ in millions)
2024	$	80.9
2025	70.8
2026	55.0
2027	44.0
2028	37.1
Thereafter	132.6
Total lease payments	420.4
Less: Imputed interest(1)	(68.0)
Present value of lease liabilities	$	352.4

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

Other information related to leases was as follows:


	Years Ended December 31,
	2023		2022		2021
Supplemental Cash Flows Information	($ in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	88.8	$	93.1	$	97.4
Operating cash flows from finance leases	—		0.1		0.1
Financing cash flows from finance leases	1.9		1.1		1.1
Non-cash increase in lease assets and lease liabilities:
Operating leases	$	71.1	$	71.8	$	56.7
Finance leases	—		—		0.1


	December 31,
	2023		2022
Weighted-Average Remaining Lease Term
Operating leases	8.9 years		9.1 years
Finance leases	—		1.6 years

Weighted-Average Discount Rate
Operating leases	4.0	%	3.4	%
Finance leases	—	%	3.6	%

As of December 31, 2023, we have additional operating leases that have not yet commenced of approximately $1.5 million which are expected to commence during 2024 with lease terms between 2 years and 3 years.