Annual report pursuant to Section 13 and 15(d)

LEASE OBLIGATIONS

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LEASE OBLIGATIONS
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
LEASE OBLIGATIONS
NOTE 12 - LEASE OBLIGATIONS
Our operating leases consist primarily of leases for land, office space, rail cars and storage tanks. Our finance leases consist primarily of mining equipment, an on-site coke battery and rail cars. We use our incremental borrowing rate as the discount rate to determine the present value of the lease payments, as our leases do not have readily determinable implicit discount rates. Our incremental borrowing rate is the rate of interest that we would have to borrow on a collateralized basis over a similar term and amount in a similar economic environment to pay our lease obligations. We determine the incremental borrowing rates for our leases by adjusting the local risk-free interest rate with a credit risk premium corresponding to our credit rating. From time to time, we may enter into arrangements for the construction or purchase of an asset and then enter into a financing arrangement to lease the asset. We recognize leased assets and liabilities under these arrangements when we obtain control of the asset.
Lease costs are presented below:
Year Ended December 31,
(In millions) 2022 2021
Operating leases $ 64  $ 70 
Finance leases:
Amortization of right-of-use assets 103  94 
Interest on lease liabilities 8  9 
Short-term leases 160  66 
Total $ 335  $ 239 
Other information related to leases was as follows:
Year Ended December 31,
(In millions) 2022 2021
Cash paid for amounts included in measurement of lease liabilities:
Operating leases within cash flows from operating activities $ 62 $ 70
Finance leases within cash flows from operating activities $ 8 $ 9
Finance leases within cash flows from financing activities $ 96 $ 94
Right-of-use assets obtained in exchange for new finance lease liabilities1
$ 55 $ 50
Weighted-average remaining lease term - operating leases (in years) 9 8
Weighted-average remaining lease term - finance leases (in years) 5 5
Weighted-average discount rate - operating leases 8  % 7  %
Weighted-average discount rate - finance leases 5  % 4  %
1 Right-of-use assets obtained in acquisitions are not included in this figure.
Future minimum lease payments under noncancellable finance and operating leases as of December 31, 2022 were as follows:
(In millions) Finance Leases Operating Leases
2023 $ 101  $ 56 
2024 36  48 
2025 32  40 
2026 24  35 
2027 13  30 
Thereafter 63  123 
Total future minimum lease payments 269  332 
Less: imputed interest 54  94 
Total lease payments 215  238 
Less: current portion of lease liabilities 93  43 
Long-term lease liabilities $ 122  $ 195 
The current and long-term portions of our finance and operating lease liabilities are included in Other current liabilities and Other non-current liabilities, respectively.