We enter into a variety of arrangements in which we are the lessee for the use of automobiles, forklifts and other production equipment, production facilities, warehouses, office space and land. We determine if an arrangement contains a lease at inception. All our lease arrangements are operating leases and are recorded in the condensed consolidated balance sheet under the caption “Other assets” and the lease obligation is under “Other current liabilities” and “Other long-term liabilities.” We do not have any finance leases.

Operating lease right of use (“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. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. We use our incremental borrowing rate

based on information available at the commencement date in determining the lease liabilities as our leases generally do not provide an implicit rate. For purposes of recording the lease arrangement, the term of lease may include options to extend or terminate when we are reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term.

The following table sets forth information related to our leases as of the periods indicated.

	June 30			December 31
Dollars in thousands	2021			2020
Right of use asset	$	24,865		$	11,789
Weighted average discount rate		3.37	%		2.94	%
Weighted average remaining maturity (months)		345			66

The following table sets forth operating lease expense for the periods indicated:
	June 30
In thousands	2021			2020
Three months ended	$	1,452		$	1,443
Six months ended		2,799			2,885

The following table sets forth required future minimum lease payments for the years indicated:

In thousands
2021	$	2,595
2022		4,299
2023		2,868
2024		2,280
2025		1,962
Thereafter		40,437

In connection with the May 2021 Mount Holly acquisition, we assumed a long-term lease of the land on which the facility is situated. The lease obligation, including renewal options that are expected to be exercised, expires in July 2077, and a corresponding right of use asset totaled of $7.7 million at the time the acquisition was completed.