Cleveland-Cliffs Inc. Annual report pursuant to Section 13 and 15(d)

LEASE OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2020

Lease costs are presented below:


	(In Millions)
	Year Ended December 31,
	2020		2019
Operating leases	$	43	$	4
Finance leases:
Amortization of lease cost	15		6
Interest on lease liabilities	4		2
Short-term leases	13		6

Total	$	75	$	18

Other information related to leases was as follows:


	(In Millions)
	Year Ended December 31,
	2020			2019
Cash paid for amounts included in measurement of lease liabilities:
Operating leases within cash flows from operating activities	$	43		$	4
Finance leases within cash flows from operating activities	$	4		$	2
Finance leases within cash flows from financing activities	$	15		$	6
Right-of-use assets obtained in exchange for new finance lease liabilities1	$	44		$	29
Weighted-average remaining lease term - operating leases (in years)	8			10
Weighted-average remaining lease term - finance leases (in years)	5			6
Weighted-average discount rate - operating leases	8		%	8		%
Weighted-average discount rate - finance leases	4		%	5		%
1 Right-of-use assets obtained in the Acquisitions are not included in this figure.

Future minimum lease payments under noncancellable finance and operating leases as of December 31, 2020 were as follows:


	(In Millions)
	Finance Leases		Operating Leases
2021	$	100	$	70
2022	95		53
2023	78		46
2024	23		38
2025	22		34
Thereafter	76		122
Total future minimum lease payments	394		363
Less: imputed interest	59		99
Total lease payments	335		264
Less: current portion of lease liabilities	91		53
Long-term lease liabilities	$	244	$	211