Weighted-average discount rate

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FMC CORPORATIONNotes to Condensed Consolidated Financial Statements (unaudited) — (Continued)real estate leases requiring additional payments for property taxes and occupancy-related costs. Leases for real estate typically have initial terms ranging from one to 20 years, with some leases having terms greater than 20 years. Leases for non-real estate (transportation, IT) typically have initial terms ranging from one to 10 years. We have elected not to record short-term leases on the balance sheet whose term is 12 months or less and does not include a purchase option or extension that is reasonably certain to be exercised.We rent or sublease a small number of assets including equipment and office space to third party companies. These third-party arrangements include a small number of TSA arrangements from recent acquisitions. Rental income from all subleases is not material to our business.The ROU asset and lease liability balances as of September 30, 2022 and December 31, 2021 were as follows:

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| (in Millions) | Classification | September 30, 2022 |  | December 31, 2021 |
| Assets |  |  |  |  |
|  |  |  |  |  |
| Operating lease ROU assets | Other assets including long-term receivables, net | $ | 123.9  |  |  | $ | 135.2  |  |
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| Liabilities |  |  |  |  |
|  |  |  |  |  |
| Operating lease current liabilities | Accrued and other liabilities | $ | 22.5  |  |  | $ | 23.5  |  |
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| Operating lease noncurrent liabilities | Other long-term liabilities | 127.5  |  |  | 140.0  |  |
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The components of lease expense for the three and nine months ended September 30, 2022 and 2021 were as follows:

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|  |  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
| (in Millions) | Lease Cost Classification | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Lease Cost |  |  |  |  |  |  |  |  |
| Operating lease cost | Costs of sales and services / Selling, general and administrative expenses | $ | 8.5  |  |  | $ | 8.3  |  |  | $ | 25.3  |  |  | $ | 25.6  |  |
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| Variable lease cost | Costs of sales and services / Selling, general and administrative expenses | 1.8  |  |  | 1.2  |  |  | 4.4  |  |  | 3.6  |  |
|  |  |  |  |  |  |  |  |  |
| Total lease cost |  | $ | 10.3  |  |  | $ | 9.5  |  |  | $ | 29.7  |  |  | $ | 29.2  |  |

  


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|  | September 30, 2022 |
| Operating Lease Term and Discount Rate |  |
| Weighted-average remaining lease term (years) | 8.6 |
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|  |  |
| Weighted-average discount rate | 4.0  | % |
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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
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|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |
| (in Millions) | 2022 |  | 2021 |  | 2022 |  | 2021 |
| Other Information |  |  |  |  |  |  |  |
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| Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
| Operating cash flows from operating leases | $ | (8.1) |  |  | $ | (7.9) |  |  | $ | (25.2) |  |  | $ | (25.5) |  |
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| Supplemental non-cash information on lease liabilities arising from obtaining right-of-use assets: |  |  |  |  |  |  |  |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 5.4  |  |  | $ | 0.8  |  |  | $ | 15.5  |  |  | $ | 16.7  |  |
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