LEASES:

9 Months Ended

Sep. 30, 2024

LEASES:

LEASES:

NOTE 6 — LEASES:

The Company has operating leases for power generating facilities, vehicles and properties. The Company recognizes leasing expenses for these leases on a straight-line basis over the lease term. Some of the Company’s leases include both lease and non-lease components which are accounted for separately. The Company’s leases have remaining lease terms of one year to nine years, and do not include options to extend the leases. The Company’s lease agreements do not contain options to purchase the leased assets or to terminate the leases before the expiration date. In addition, the Company’s lease contracts have no material residual value guarantees or material restrictive covenants. As none of the Company’s leases stipulates an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The weighted average remaining lease term for the Company’s leases is approximately eight years, and the weighted average discount rate for these leases is 4.06%.

The operating lease expense recognized in the nine-month period ended September 30, 2024 and 2023 was classified as follows (in millions):

Classification	2024		2023
Cost of sales (exclusive of depreciation, amortization and depletion)	$	77.4	$	86.9
Selling, general and administrative		0.1		0.1
Exploration		0.1		0.2
Total lease expense	$	77.5	$	87.2

Maturities of lease liabilities are as follows:

	Lease liabilities
Year	(in millions)
2024	$	27.7
2025		106.9
2026		106.6
2027		106.3
2028		106.0
After 2028		421.8
Total lease payments	$	875.3
Less: interest on lease liabilities		(150.3)
Present value of lease payments	$	725.0