We are the lessee under various operating leases for certain sales offices, call centers, office space, equipment and vehicles. Some leases include one or more options to renew, at our discretion, for renewal terms of one year or more. Certain of our lease agreements include rental payments based on a percentage of sales generated at the location, and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain residual value guarantees or restrictive covenants which we believe to be material.

We recognize operating lease assets and operating lease liabilities associated with lease agreements with an initial term of 12 months or greater, while lease agreements with an initial term of 12 months or less are not recorded in our consolidated balance sheets. We generally do not include lease payments associated with renewal options, including those that are exercisable at our discretion, in the measurement of our operating lease assets and liabilities as we are not reasonably certain that such options will be exercised. The table below sets forth information regarding our lease agreements with an initial term of greater than 12 months (dollars in thousands):



	As of December 31,
	2020		2019
Operating Lease Asset	$	34,325	$	20,858
Operating Lease Liability		35,783		22,124
Weighted Average Lease Term (in years) ⁽¹⁾		3.4		3.7
Weighted Average Discount Rate ⁽²⁾		4.77%		5.30%

(1)Our weighted average lease term excludes two real estate leases that expire in December 2034 and May 2056.

(2)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 lease payments. To estimate incremental borrowing rates, we consider various factors, including the rates applicable to our recently issued debt and credit facilities and prevailing financial market conditions. We used the incremental borrowing rate as of January 1, 2019 for operating leases that commenced prior to that date.

We generally recognize lease costs associated with our operating leases on a straight-line basis over the lease term, while variable lease payments that do not depend on an index or rate are recognized as variable lease costs in the period in which the obligation for those payments is incurred. The table below sets forth information regarding our lease costs which are included as selling, general and administrative expenses in our consolidated statement of operations and comprehensive income (in thousands):


	For the year ended December 31,
	2020		2019
Fixed rental costs	$	6,809	$	7,460
Short-term lease cost		1,807		5,113
Variable lease cost		1,917		2,490
Total operating lease costs	$	10,533	$	15,063

The table below sets forth information regarding the maturity of our operating lease liabilities as of December 31, 2020 (in thousands):


As of December 31,	Operating Lease Liabilities
2021	$	3,904
2022		6,703
2023		5,858
2024		3,618
2025		2,152
After 2025		25,435
Total lease payments	$	47,670
Less: Interest		11,887
Present value of operating lease liabilities	$	35,783

The above operating lease payments exclude $0.9 of required minimum lease payments for lease agreements executed but not yet commenced, as we have not received possession of the leased property as of December 31, 2020. Included in our statement of cash flows under operating activities for the years ended December 31, 2020 and 2019 was $6.6 million and $6.9 million, respectively, of cash paid for amounts included in the measurement of lease liabilities.

During the year ended December 31, 2020 and 2019, we obtained $19.4 million and $1.6 million, respectively, of right-of-use assets in exchange for new operating lease liabilities. The increase in the right-of-use assets and operating lease liabilities in 2020 as compared to 2019 was primarily due to 2 leases executed in December 2020.