Leases

12 Months Ended

Dec. 31, 2020

Leases

Most of the leases the Company enters into are for equipment, buildings, easements and vehicles as part of their ongoing operations. The Company also leases certain equipment to third parties through its utility and construction services segments. The Company determines if an arrangement contains a lease at inception of a contract and accounts for all leases in accordance with ASC 842 - Leases.

The recognition of leases requires the Company to make estimates and assumptions that affect the lease classification and the assets and liabilities recorded. The accuracy of lease assets and liabilities reported on the Consolidated Financial Statements depends on, among other things, management's estimates of interest rates used to discount the lease assets and liabilities to their present value, as well as the lease terms based on the unique facts and circumstances of each lease.

Lessee accounting

The leases the Company has entered into as part of its ongoing operations are considered operating leases and are recognized on the Consolidated Balance Sheets as operating lease right-of-use assets, operating lease liabilities due within one year and, if applicable, noncurrent liabilities - operating lease liabilities. The corresponding lease costs are included in operation and maintenance expense on the Consolidated Statements of Income.

Generally, the leases for vehicles and equipment have a term of five years or less and buildings and easements have a longer term of up to 35 years or more. To date, the Company does not have any residual value guarantee amounts probable of being owed to a lessor, financing leases or material agreements with related parties.

The following tables provide information on the Company's operating leases at and for the years ended December 31:


	2020		2019
	(In thousands)
Lease costs:
Operating lease cost	$	45,319	$	43,759
Variable lease cost	1,319		1,555
Short-term lease cost	135,376		120,030
Total lease costs	$	182,014	$	165,344


	2020			2019
	(Dollars in thousands)
Weighted average remaining lease term	2.73 years			3.13 years
Weighted average discount rate	4.03		%	4.41		%
Cash paid for amounts included in the measurement of lease liabilities	$	45,043		$	43,477

The reconciliation of the future undiscounted cash flows to the operating lease liabilities presented on the Consolidated Balance Sheet at December 31, 2020, was as follows:


	(In thousands)
2021	$	36,632
2022	25,133
2023	16,639
2024	12,140
2025	7,852
Thereafter	48,845
Total	147,241
Less discount	26,718
Total operating lease liabilities	$	120,523

Leases of Lessor Disclosure

Lessor accounting

The Company leases certain equipment to third parties through its utility and construction services segments, which are considered short-term operating leases with terms of less than 12 months. The Company recognized revenue from operating leases of $48.0 million and $51.5 million for the years ended December 31, 2020 and 2019, respectively. At December 31, 2020, the Company had $11.2 million of lease receivables with a majority due within 12 months or less.