Leases

12 Months Ended

Dec. 31, 2020

NOTE 10. LEASES

We determine if an arrangement is or contains a lease at inception. We have operating leases for office space, warehouses, distribution centers, research and development facilities, manufacturing locations, and certain equipment, primarily automobiles. Many leases include one option to renew, some of which include options to extend the lease for up to 15 years, and some of which include options to terminate the leases within one year. We considered options to renew in our lease terms and measurement of right-of-use assets and lease liabilities if we determined they were reasonably certain to be exercised.

Operating lease cost was $22.5 million, $22.1 million, and $23.1 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Short-term and variable lease cost, sublease income and cost for finance leases were immaterial for the year ended December 31, 2020. During the year ended December 31, 2020, cash paid for operating leases was $21.0 million and is included in operating cash flows. Right-of-use assets obtained in exchange for operating lease obligations were $13.6 million for the year ended December 31, 2020.

The following table presents the maturity of our operating lease liabilities as of December 31, 2020:


($ in millions)
2021	$	11.8
2022	8.2
2023	6.3
2024	4.3
2025	3.3
Thereafter	16.7
Total lease payments	50.6
Less: imputed interest	(8.2)
Total lease liabilities	$	42.4

As of December 31, 2020, the weighted average lease term of our operating leases was 8.6 years, and the weighted average discount rate of our operating leases was 3.1%. We primarily use our incremental borrowing rate as the discount rate for our operating leases, as we are generally unable to determine the interest rate implicit in the lease.