Leases

9 Months Ended

Sep. 30, 2020

We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At September 30, 2020, our operating leases had remaining lease terms of up to 40 years.

Lease balances within our consolidated balance sheet were as follows:


(In thousands)	September 30, 2020		December 31, 2019
Assets:
Operating lease right-of-use assets	$	18,678	$	19,826
Liabilities:
Other accrued liabilities	$	5,802	$	4,903
Long-term operating lease obligations	13,284		15,639
Total lease liabilities	$	19,086	$	20,542

Operating lease expense, including variable and short-term lease costs which were insignificant to the total, operating lease cash flows and supplemental cash flow information were as follows:


(In thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cost of sales	$	513	$	574	$	1,285	$	1,627
Selling, general and administrative expenses	976		1,036		2,994		3,324
Total operating lease expense	$	1,489	$	1,610	$	4,279	$	4,951
Operating cash outflows from operating leases	$	1,617	$	1,537	$	4,685	$	5,197
Operating lease right-of-use assets obtained in exchange for lease obligations	$	1,935	$	1,131	$	2,121	$	2,655

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


	September 30, 2020		December 31, 2019
Weighted average lease liability term (in years)	3.8		4.3
Weighted average discount rate	4.18	%	4.50	%

The following table reconciles the undiscounted cash flows for each of the first five years and thereafter to the operating lease liabilities recognized in our consolidated balance sheet at September 30, 2020. The reconciliation excludes short-term leases that are not recorded on the balance sheet.


(In thousands)	September 30, 2020
2020 (remaining 3 months)	$	1,462
2021	6,671
2022	5,671
2023	2,835
2024	1,765
Thereafter	2,281
Total lease payments	20,685
Less: imputed interest	(1,599)
Total lease liabilities	$	19,086

At September 30, 2020, we had one operating lease with a five-year term that had not yet commenced. The total initial lease liability, which is immaterial to the balance sheet, is not reflected within the above maturity schedule.