We determine whether an agreement is a lease at inception. We have operating and finance leases for equipment and real estate that primarily have fixed lease payments. Our leases have remaining lease terms of approximately one to 13 years, some of which may include options to extend the lease for up to 20 years, and some of which may include options to terminate the lease within one year. None of our options to extend or terminate are reasonably certain of being exercised, and are therefore not included in our

determination of lease assets and liabilities. Short-term leases with an initial term of 12 months or less are not recorded on our Consolidated Balance Sheets.

As most of our leases do not provide an implicit rate, we use information available at the lease commencement date in determining an incremental borrowing rate when calculating our right-of-use lease assets and liabilities. In determining the inputs to the incremental borrowing rate calculation, we make judgments about the value of the leased asset, our credit rating and the lease term, including the probability of our exercising options to extend or terminate the underlying lease. Additionally, we make judgments around contractual asset substitution rights in determining whether a contract contains a lease.

We have lease agreements with lease and non-lease components, which are generally accounted for separately. These non-lease components include items such as common area maintenance, taxes and insurance for our real estate leases, as well as maintenance charges related to our equipment leases. We have, however, applied the practical expedient within ASU 2016-02 to not separate lease and non-lease components to our embedded supply system equipment leases and have therefore accounted for both lease and non‑lease components in determining the lease assets and liabilities.

Many of our equipment leases contain clauses that require us to return the equipment with certain functionality intact. We account for these costs as residual value guarantees when the guarantee becomes probable of being owed. Our lease agreements do not contain any material restrictive covenants.

The following table presents lease terms and discount rates as of December 31, 2020:

The following table summarizes the classification of lease assets and lease liabilities on our Consolidated Balance Sheets (in millions of dollars):

		As of December 31,
Leases	Classification	2020		2019
Assets
Operating lease assets	Operating lease assets	$	26.5	$	25.8
Finance lease assets	Property, plant and equipment, net		8.1		6.6
Total lease assets		$	34.6	$	32.4
Liabilities
Current:
Operating lease liabilities	Other accrued liabilities	$	4.4	$	3.9
Finance lease liabilities	Other accrued liabilities		1.9		1.2
Non-current:
Operating lease liabilities	Long-term portion of operating lease liabilities		25.6		25.2
Finance lease liabilities	Long-term liabilities		6.2		5.4
Total lease liabilities		$	38.1	$	35.7

The following table summarizes the components of lease cost on our Statements of Consolidated Income (in millions of dollars):

	Year Ended December 31,
	2020		2019
Operating lease cost	$	6.8	$	7.5
Short-term lease cost		1.6		1.2
Finance lease cost:
Amortization of leased assets		1.6		1.5
Interest on lease liabilities		0.3		0.3
Total lease cost	$	10.3	$	10.5

The following table presents the maturity of our lease liabilities as of December 31, 2020 (in millions of dollars):

Maturity of Lease Liabilities	Finance Leases			Operating Leases
2021	$	2.2		$	5.9
2022		2.0			5.0
2023		1.7			4.6
2024		1.2			4.2
2025		1.0			2.3
Thereafter		0.8			16.9
Total minimum lease payments	$	8.9		$	38.9
Less: interest		(0.8	)		(8.9	)
Present value	$	8.1		$	30.0