14. Leases

The Company's operating leases consist primarily of leases for land, office space, equipment, railcars and locomotives. The Company's finance leases consist primarily of equipment. Certain of our long-term leases include one or more options to renew or to terminate, with renewal terms that can extend the lease term from one month to 50 years.

The components of lease expense were as follows:


	Years ended December 31,
	2025		2024
	(Dollars in millions)
Operating leases:
Cost of products sold and operating expenses	$	2.4	$	2.4
Selling, general and administrative expenses	0.5		0.5
Operating lease cost	$	2.9	$	2.9
Finance Leases:
Depreciation of Right of Use ("ROU") assets	$	7.1	0.2
Interest on lease liabilities	0.3		—
Finance lease cost	$	7.4	$	0.2
Short-term leases:
Cost of products sold and operating expenses(1)(2)	9.6		5.5
Total lease expense	$	19.9	$	8.6

(1)Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is not reasonably certain to renew the lease term beyond one month.

(2)Includes variable lease expenses, which are immaterial to the consolidated financial statements.

Supplemental balance sheet information related to leases are as follows:


		Years ended December 31,
	Financial Statement Classification	2025		2024
		(Dollars in millions)
Operating Leases:
Operating ROU assets	Deferred charges and other assets	$	12.2	$	11.5

Operating lease liabilities:
Current operating lease liabilities	Accrued liabilities	$	2.8	$	2.4
Noncurrent operating lease liabilities	Other deferred credits and liabilities	8.9		8.5
Total operating lease liabilities		$	11.7	$	10.9

Finance Leases:
Finance ROU Assets	Properties, plants and equipment	$	10.6	$	0.6

Finance lease liabilities:
Current finance lease liabilities	Accrued liabilities	$	3.8	$	0.3
Long-term finance lease liabilities	Long-term finance lease liability	2.6		0.2
Total finance lease liabilities		$	6.4	$	0.5

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


	Years ended December 31,
	2025		2024
Weighted average remaining lease term of operating leases	7.6		8.4
Weighted average discount rate of operating leases	5.3	%	5.0	%
Weighted average remaining lease term of finance leases	2.2		1.8
Weighted average discount rate of finance leases	5.6	%	6.4	%

Supplemental cash flow information related to leases was as follows:


	Years ended December 31,
	2025		2024
	(Dollars in millions)
Operating cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	2.9	$	2.6
Cash paid for amounts included in the measurement of finance lease liabilities(1)	$	10.3	$	0.2
Non-cash activity:
ROU assets obtained in exchange for new operating lease liabilities	$	0.4	$	2.3

(1)The year ended December 31, 2025 includes $5.5 million of payments related to finance lease buyouts executed in the current year period.

Maturities of operating and finance lease liabilities as of December 31, 2025 are as follows:


	Operating Leases		Finance Leases
	(Dollars in millions)

2026	$	3.2	4.0
2027	2.4		1.3
2028	2.3		1.0
2029	2.0		0.4
2030	0.6		0.1
2031-Thereafter	3.9		—
Total lease payments	14.4		6.8
Less: imputed interest	2.7		0.4
Total lease liabilities	$	11.7	$	6.4

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

SunCoke Energy, Inc. Leases Disclosure

About Leases Disclosures

Other Available Disclosures