diff --git a/src/Juvix/Compiler/Core/Info/FreeVarsInfo.hs b/src/Juvix/Compiler/Core/Info/FreeVarsInfo.hs
index 2a665ab4e5..b9be178967 100644
--- a/src/Juvix/Compiler/Core/Info/FreeVarsInfo.hs
+++ b/src/Juvix/Compiler/Core/Info/FreeVarsInfo.hs
@@ -19,7 +19,10 @@ makeLenses ''FreeVarsInfo
 -- | Computes free variable info for each subnode. Assumption: no subnode is a
 -- closure.
 computeFreeVarsInfo :: Node -> Node
-computeFreeVarsInfo = umap go
+computeFreeVarsInfo = computeFreeVarsInfo' 1
+
+computeFreeVarsInfo' :: Int -> Node -> Node
+computeFreeVarsInfo' lambdaMultiplier = umap go
   where
     go :: Node -> Node
     go node = case node of
@@ -27,6 +30,15 @@ computeFreeVarsInfo = umap go
         mkVar (Info.insert fvi _varInfo) _varIndex
         where
           fvi = FreeVarsInfo (Map.singleton _varIndex 1)
+      NLam Lambda {..} ->
+        modifyInfo (Info.insert fvi) node
+        where
+          fvi =
+            FreeVarsInfo
+              . fmap (* lambdaMultiplier)
+              . Map.mapKeysMonotonic (\idx -> idx - 1)
+              . Map.filterWithKey (\idx _ -> idx >= 1)
+              $ getFreeVarsInfo _lambdaBody ^. infoFreeVars
       _ ->
         modifyInfo (Info.insert fvi) node
         where
@@ -34,11 +46,11 @@ computeFreeVarsInfo = umap go
             FreeVarsInfo $
               foldr
                 ( \NodeChild {..} acc ->
-                    Map.unionWith (+) acc $
-                      Map.mapKeysMonotonic (\idx -> idx - _childBindersNum) $
-                        Map.filterWithKey
-                          (\idx _ -> idx >= _childBindersNum)
-                          (getFreeVarsInfo _childNode ^. infoFreeVars)
+                    Map.unionWith (+) acc
+                      . Map.mapKeysMonotonic (\idx -> idx - _childBindersNum)
+                      . Map.filterWithKey
+                        (\idx _ -> idx >= _childBindersNum)
+                      $ getFreeVarsInfo _childNode ^. infoFreeVars
                 )
                 mempty
                 (children node)
diff --git a/src/Juvix/Compiler/Core/Info/ShallowFreeVarsInfo.hs b/src/Juvix/Compiler/Core/Info/ShallowFreeVarsInfo.hs
deleted file mode 100644
index 31cc9d4f62..0000000000
--- a/src/Juvix/Compiler/Core/Info/ShallowFreeVarsInfo.hs
+++ /dev/null
@@ -1,50 +0,0 @@
-module Juvix.Compiler.Core.Info.ShallowFreeVarsInfo where
-
-import Data.Map qualified as Map
-import Juvix.Compiler.Core.Extra
-import Juvix.Compiler.Core.Info qualified as Info
-
-newtype ShallowFreeVarsInfo = ShallowFreeVarsInfo
-  { -- map free variables to the number of their shallow occurrences (not under binders)
-    _infoShallowFreeVars :: Map Index Int
-  }
-
-instance IsInfo ShallowFreeVarsInfo
-
-kShallowFreeVarsInfo :: Key ShallowFreeVarsInfo
-kShallowFreeVarsInfo = Proxy
-
-makeLenses ''ShallowFreeVarsInfo
-
--- | Computes shallow free variable info for each subnode. Assumption: no
--- subnode is a closure.
-computeShallowFreeVarsInfo :: Node -> Node
-computeShallowFreeVarsInfo = umap go
-  where
-    go :: Node -> Node
-    go node = case node of
-      NVar Var {..} ->
-        mkVar (Info.insert fvi _varInfo) _varIndex
-        where
-          fvi = ShallowFreeVarsInfo (Map.singleton _varIndex 1)
-      _ ->
-        modifyInfo (Info.insert fvi) node
-        where
-          fvi =
-            ShallowFreeVarsInfo $
-              foldr
-                ( \NodeChild {..} acc ->
-                    if
-                        | _childBindersNum == 0 ->
-                            Map.unionWith (+) acc (getShallowFreeVarsInfo _childNode ^. infoShallowFreeVars)
-                        | otherwise ->
-                            acc
-                )
-                mempty
-                (children node)
-
-getShallowFreeVarsInfo :: Node -> ShallowFreeVarsInfo
-getShallowFreeVarsInfo = fromJust . Info.lookup kShallowFreeVarsInfo . getInfo
-
-shallowFreeVarOccurrences :: Index -> Node -> Int
-shallowFreeVarOccurrences idx n = fromMaybe 0 (Map.lookup idx (getShallowFreeVarsInfo n ^. infoShallowFreeVars))
diff --git a/src/Juvix/Compiler/Core/Transformation/Optimize/LetFolding.hs b/src/Juvix/Compiler/Core/Transformation/Optimize/LetFolding.hs
index 87cf884eb8..d95891177c 100644
--- a/src/Juvix/Compiler/Core/Transformation/Optimize/LetFolding.hs
+++ b/src/Juvix/Compiler/Core/Transformation/Optimize/LetFolding.hs
@@ -40,7 +40,7 @@ letFolding' isFoldable tab =
   mapAllNodes
     ( removeInfo kFreeVarsInfo
         . convertNode isFoldable tab
-        . computeFreeVarsInfo
+        . computeFreeVarsInfo' 2
     )
     tab
 
diff --git a/tests/Compilation/positive/test059.juvix b/tests/Compilation/positive/test059.juvix
index 03a5be832f..91ea8dcbce 100644
--- a/tests/Compilation/positive/test059.juvix
+++ b/tests/Compilation/positive/test059.juvix
@@ -1,15 +1,15 @@
 -- builtin list
 module test059;
 
-import Stdlib.Prelude open hiding {head};
+import Stdlib.Prelude open;
 
 mylist : List Nat := [1; 2; 3 + 1];
 
 mylist2 : List (List Nat) := [[10]; [2]; 3 + 1 :: nil];
 
-head : {a : Type} -> a -> List a -> a
+head' : {a : Type} -> a -> List a -> a
   | a [] := a
   | a [x; _] := x
   | _ (h :: _) := h;
 
-main : Nat := head 50 mylist + head 50 (head [] mylist2);
+main : Nat := head' 50 mylist + head' 50 (head' [] mylist2);