Leasing

12 Months Ended

Dec. 31, 2023

T. Leasing

The Company records a right-of-use asset and lease liability for several types of operating leases, including land and buildings, alumina refinery process control technology, plant equipment, vehicles, and computer equipment. These amounts are equivalent to the aggregate future lease payments on a discounted basis. The leases have remaining terms of less than one to 59 years. The discount rate applied in determining the present value of lease payments is the Company’s incremental borrowing rate at the lease commencement date, unless there is a rate implicit in the lease agreement. The Company does not have material financing leases.

Lease expense and operating cash flows include:


	2023		2022
Costs from operating leases	$	53	$	54
Variable lease payments	$	25	$	16
Short-term rental expense	$	11	$	2

The weighted average lease term and weighted average discount rate were as follows:


December 31,	2023			2022
Weighted average lease term for operating leases (years)	12.9			5.1
Weighted average discount rate for operating leases		6.7	%		5.6	%

The following represents the aggregate right-of-use assets and related lease obligations recognized in the Consolidated Balance Sheet:


December 31,	2023		2022
Properties, plants, and equipment, net	$	135	$	89
Other current liabilities		31		30
Other noncurrent liabilities and deferred credits		104		59
Total operating lease liabilities	$	135	$	89

New leases of $76 and $26 were added during the years ended December 31, 2023 and 2022, respectively.

The future cash flows related to the operating lease obligations as of December 31, 2023 were as follows:


Year Ending December 31,
2024	$	40
2025		26
2026		20
2027		16
2028		11
Thereafter		112
Total lease payments (undiscounted)		225
Less: discount to net present value		(90	)
Total	$	135