The Company’s operating leases are primarily comprised of real estate, railcar, storage tank, warehouse, auto, trailer and manufacturing/office equipment leases. Real estate and railcars comprise approximately 62 percent and 24 percent, respectively, of the Company’s consolidated right of use (ROU) asset balance. Except for real estate, typical lease terms range from one to ten years. Real estate lease terms typically range from one to fifty years. The Company’s four principal real estate leases consist of the office lease for the corporate headquarters in Northbrook, Illinois and land leases in the Philippines, Singapore and Lake Providence, Louisiana. As of December 31, 2022, the Company had railcars, equipment and storage tank leases valued at approximately $8,229,000, that had not commenced. These leases will commence during the first three quarters of 2023 with lease terms ranging 1 year to 10 years.

As most of the Company’s leases do not provide an implicit borrowing rate, the Company uses its incremental borrowing rate (IBR) based on the information available at the commencement date in determining the present value of lease payments. IBRs were specifically determined for the United States, Philippines, Singapore, Brazil and China, typically for five-year increments. The U.S. IBR was used for all other countries as the leases in these countries are not material. The total value of leases that reside in the five countries identified above represents approximately 97 percent of the Company’s consolidated ROU asset balance. Lease cost is recognized in both the Cost of Sales and Operating Expenses sections of the Consolidated Statements of Income.


(In thousands)	Year ended December 31, 2022		Year ended December 31, 2021
Lease Cost
Operating lease cost	$	16,042	$	15,630
Short-term lease cost		7,029		6,570
Variable lease cost		1,206		892
Total lease cost	$	24,277	$	23,092
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	15,963	$	14,885
Right-of-use assets obtained in exchange for operating lease liabilities		7,588		19,610

The following table outlines maturities of lease liabilities as of December 31, 2022:


(In thousands)
Undiscounted Cash Flows:
2023	$	14,683
2024		9,461
2025		6,892
2026		5,226
2027		4,767
Subsequent to 2027		34,063
Total Undiscounted Cash Flows	$	75,092
Less: Imputed interest		(11,481	)
Present value	$	63,611
Current operating lease liabilities (1)		13,052
Non-current operating lease liabilities		50,559
Total lease liabilities	$	63,611

(1)

This item is included in Accrued liabilities line on the Company’s Consolidated Balance Sheet.