We lease a variety of transportation equipment (including trucks, trailers, and railcars), terminals, land and facilities, and office space and equipment. Lease terms vary and can range from short term (under 12 months) to long term (greater than 12 months). A majority of our leases contain options to extend the life of the lease at our sole discretion. We considered these options when determining the lease terms used to derive our right of use asset and associated lease liability. Leases with a term of less than 12 months are not recorded on our Consolidated Balance Sheets and we recognize lease expense for these leases on a straight-line basis over the lease term.

Certain lease agreements include lease and non-lease components. We have elected to combine lease and non-lease components for all of our underlying assets for the purpose of deriving our right of use asset and lease liability. Additionally, certain lease payments are driven by variable factors, such as plant production or indexing rates. Variable costs are expensed as incurred and are not included in our determination for our lease liability and right of use asset.

As a lessee, we do not have any finance leases and none of our leases contain material residual value guarantees or material restrictive covenants. In addition, most of our leases do not provide an implicit rate, and as such, we determined our incremental borrowing rate based on the information available at the inception of the lease in determining the present value of lease payments.

Our lease portfolio consists of operating leases within three major categories: Transportation Equipment, Office Space and Equipment, and Facilities and Equipment. These values are recorded within Right of Use Assets, net on the Consolidated Balance Sheets. Current and non-current lease liabilities are recorded within Accrued liabilities and Other long-term liabilities, respectively, on the Consolidated Balance Sheets. Refer to the table below for our lease balances as of December 31, 2021 and December 31, 2020.


Leases	Classification	Financial Statement Caption	December 31, 2021		December 31, 2020
Assets
	Transportation Equipment	Right of Use Assets, net	$	79,784	$	88,038
	Office Space & Equipment	Right of Use Assets, net	5,981		7,489
	Facilities and Equipment	Right of Use Assets, net	55,031		58,398
Total Right of Use Assets, net			$	140,796	$	153,925

Liabilities
Current		Accrued liabilities	19,966		23,348
Non-Current		Other long-term liabilities	121,854		131,623
Total Lease Liability			$	141,820	$	154,971

Our “Right of Use Assets, net” balance includes our unamortized initial direct costs associated with certain of our transportation equipment leases. Additionally, it includes our unamortized prepaid rents, our deferred rents, and our previously classified intangible asset associated with a favorable lease. Our lease liability includes our cease-use provision for railcars no longer in use.

We recorded total operating lease expense of $18.4 million, $30.2 million, and $27.2 million for the years ended December 31, 2021, 2020, and 2019, respectively. The total operating lease expense is net of the variable railcar mileage credits we receive in our Alkali Business of $20.8 million, $18.4 million, and $24.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. The total operating cost includes the amounts associated with our existing lease liabilities, along with both short term and variable lease costs incurred during the period which are not significant to the operating lease cost individually, or in the aggregate.

The following table presents the maturities of our operating lease liabilities as of December 31, 2021 on an undiscounted cash flow basis reconciled to the present value recorded on our Consolidated Balance Sheets:


Maturity of Lease Liabilities	Transportation Equipment		Office Space and Equipment		Facilities and Equipment		Operating Leases
2022	$	20,401	$	2,922	$	5,604	$	28,927
2023	18,778		1,125		5,529		25,432
2024	17,716		995		5,005		23,716
2025	13,983		776		5,041		19,800
2026	9,846		664		5,092		15,602
Thereafter	14,113		432		120,485		135,030
Total Lease Payments	94,837		6,914		146,756		248,507
Less: Interest	(15,121)		(759)		(90,807)		(106,687)
Present value of operating lease liabilities	$	79,716	$	6,155	$	55,949	$	141,820

Lease Term and Discount Rate

December 31, 2021

December 31, 2020

Weighted-average remaining lease term

13.48 years

13.10 years

Weighted-average discount rate

7.69%

7.68%


Cash Flows Information	December 31, 2021		December 31, 2020
Cash paid for amounts included in the measurement of lease liabilities	$	33,145	$	41,308
Leased assets obtained in exchange for new operating lease liabilities	8,296		8,035

We have certain contracts discussed below in which we act as a lessor. We also, from time to time, sublease certain of our transportation and facilities equipment to third parties.

During the years ended December 31, 2021, 2020, and 2019, we acted as a lessor in our revenue contracts associated with the M/T American Phoenix, included in our marine transportation segment. During the years ended December 31, 2020, and 2019, we acted as a lessor in our Free State pipeline system, included in our onshore facilities and transportation segment. Revenues associated with these contracts were recorded within their respective segment's revenue in the Consolidated Statements of Operations. Our lease revenues for these arrangements (inclusive of fixed and variable consideration) are reflected in the table below for the years ended December 31, 2021, 2020, and 2019, respectively:

(1) We sold the Free State pipeline to a subsidiary of Denbury Inc. on October 30, 2020. The 2020 revenues presented above reflect operations through October 29, 2020 as that was the last date the asset operated under our ownership.

We formerly held a direct finance lease of the Northeast Jackson Dome (“NEJD”) Pipeline. Under the terms of the agreement, we were paid a quarterly payment, which commenced on August 3, 2008. These payments were fixed at approximately $5.2 million per quarter during the lease term at an interest rate of 10.25%. At the end of the lease term in 2028,