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LEASES

12 Months Ended

Dec. 31, 2020

LEASES

We adopted ASC 842 effective January 1, 2019 and elected the modified retrospective transition method. We determine if an arrangement is a lease at inception. Operating leases are included in “Operating lease right-of-use (‘ROU’) assets”, “operating lease liabilities” and “current portion of operating lease obligations” on our consolidated balance sheets. Finance leases are included in “property, plant and equipment, net”, “current portion of long-term debt and finance lease obligations” and “long-term debt and finance lease obligations” on our consolidated balance sheets.

Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments and short-term lease payments (leases with initial terms less than twelve months) are expensed as incurred.

We have lease agreements with lease and non-lease components for certain equipment, office, and vehicle leases. We have elected the practical expedient to not separate lease and non-lease components and account for both as a single lease component.

We have operating and finance leases primarily for equipment, real estate, and vehicles. Our leases have remaining lease terms of 1 year to 14 years, some of which may include options to extend the leases for up to 10 years, and some of which may include options to terminate the leases within 1 year.

The components of lease expense are as follows (in thousands):


	Twelve Months Ended December 31, 2020		Twelve Months Ended December 31, 2019
Operating lease costs	$	26,431	$	30,331
Variable lease costs	5,440		6,195
Finance lease costs:
Amortization of right-of-use assets	441		322
Interest on lease liabilities	320		333
Total lease cost	$	32,632	$	37,181

Other information related to leases are as follows (in thousands):


	Twelve Months Ended December 31, 2020		Twelve Months Ended December 31, 2019
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	20,883	$	24,263
Operating cash flows from finance leases	327		389
Financing cash flows from finance leases	278		291
Right-of-use assets obtained in exchange for lease obligations
Operating leases	4,624		16,242
Finance leases	60		326

Amounts recognized in the condensed consolidated balance sheet are as follows (in thousands):


	December 31, 2020			December 31, 2019
Operating Leases:
Operating lease right-of-use assets	$	63,869		$	67,048
Current portion of operating lease obligations	17,375			17,100
Operating lease obligations (non-current)	52,207			54,436

Finance Leases:
Property, plant and equipment, net	$	4,779		$	5,156
Current portion of long-term debt and finance lease obligations	337			294
Long-term debt and finance lease obligations	4,816			5,069

Weighted average remaining lease term
Operating leases	6 years			6 years
Finance leases	12 years			13 years
Weighted average discount rate
Operating leases	6.7		%	8.3		%
Finance lease	6.2		%	6.3		%

As of December 31, 2020, we have no material additional operating and finance leases that have not yet commenced.

As of December 31, 2020, future minimum lease payments under non-cancellable (excluding short-term leases) are as follows (in thousands):


Twelve Months Ended December 31,	Operating Leases		Finance Lease
2021	19,337		621
2022	14,418		625
2023	12,387		559
2024	10,196		545
2025	7,883		555
Thereafter	17,074		4,553
Total future minimum lease payments	81,295		7,458
Less: Interest	11,713		2,305
Present value of lease liabilities	$	69,582	$	5,153

Total rent expense resulting from operating leases, including short-term leases, for the years ended December 31, 2020, 2019 and 2018 were $38.8 million, $43.0 million and $44.9 million, respectively.

Leases