Leases

9 Months Ended

Sep. 30, 2021

We have entered into various operating lease agreements for automobiles, offices and manufacturing facilities throughout the world. At September 30, 2021, our operating leases had remaining lease terms of up to 39 years, including any reasonably probable extensions.

Lease balances within our consolidated balance sheet were as follows:


(In thousands)	September 30, 2021		December 31, 2020
Assets:
Operating lease right-of-use assets	$	17,726	$	19,522
Liabilities:
Other accrued liabilities	$	4,979	$	6,094
Long-term operating lease obligations	11,948		13,681
Total lease liabilities	$	16,927	$	19,775

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,
	2021		2020		2021		2020
Cost of sales	$	595	$	513	$	1,893	$	1,285
Selling, general and administrative expenses	1,032		976		3,090		2,994
Total operating lease expense	$	1,627	$	1,489	$	4,983	$	4,279
Operating cash outflows from operating leases	$	1,574	$	1,617	$	4,958	$	4,685
Operating lease right-of-use assets obtained in exchange for lease obligations	$	70	$	1,935	$	3,077	$	2,121
Non-cash release of operating lease obligations (1)	$	—	$	—	$	654	$	—

(1)During the nine months ended September 30, 2021, we were released from our guarantee of the lease obligation related to our Ohio call center which was sold in February 2020.

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


	September 30, 2021		December 31, 2020
Weighted average lease liability term (in years)	4.0		3.7
Weighted average discount rate	3.34	%	3.84	%

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, 2021. The reconciliation excludes short-term leases that are not recorded on the balance sheet.


(In thousands)	September 30, 2021
2021 (remaining 3 months)	$	1,286
2022	5,585
2023	4,001
2024	2,687
2025	2,239
Thereafter	2,317
Total lease payments	18,115
Less: imputed interest	(1,188)
Total lease liabilities	$	16,927

At September 30, 2021, we had four operating leases with four-year terms 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.