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Leases

6 Months Ended

Jun. 30, 2021

Leases:

We lease certain office space, buildings, transportation and equipment in various countries. The initial lease terms generally range from 1 to 30 years for real estate leases, and from 2 to 15 years for non-real estate leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet, and we recognize lease expense for these leases on a straight-line basis over the lease term.

Many leases include options to terminate or renew, with renewal terms that can extend the lease term from 1 to 50 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table provides details of our lease contracts for the three-month and six-month periods ended June 30, 2021 and 2020 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Operating lease cost	$	9,735	$	8,473	$	19,147	$	17,213
Finance lease cost:
Amortization of right of use assets	156		153		313		307
Interest on lease liabilities	752		630		1,507		1,280
Total finance lease cost	908		783		1,820		1,587

Short-term lease cost	2,176		3,514		4,780		6,397
Variable lease cost	1,813		2,084		4,178		4,032


Total lease cost	$	14,632	$	14,854	$	29,925	$	29,229

Supplemental cash flow information related to our lease contracts for the six-month periods ended June 30, 2021 and 2020 is as follows (in thousands):


	Six Months Ended June 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,980	$	18,664
Operating cash flows from finance leases	876		749
Financing cash flows from finance leases	316		344
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	50,856		17,197

Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2021 and December 31, 2020 is as follows (in thousands, except as noted):


	June 30, 2021			December 31, 2020
Operating leases:
Other assets	$	172,058		$	136,292

Accrued expenses	34,114			22,297
Other noncurrent liabilities	142,122			116,765
Total operating lease liabilities	176,236			139,062
Finance leases:
Net property, plant and equipment	58,582			58,963

Current portion of long-term debt(a)	2,369			1,752
Long-term debt	58,168			58,543
Total finance lease liabilities	60,537			60,295
Weighted average remaining lease term (in years):
Operating leases	12.5			15.3
Finance leases	27.2			27.5
Weighted average discount rate (%):
Operating leases	3.79		%	3.94		%
Finance leases	4.57		%	4.56		%

(a) Balance includes accrued interest of finance lease recorded in Accrued liabilities.

Maturities of lease liabilities at June 30, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2021	$	21,752	$	1,091
2022	36,814		4,463
2023	33,521		4,463
2024	20,182		4,463
2025	14,265		4,463
Thereafter	131,613		89,916
Total lease payments	258,147		108,859
Less imputed interest	81,911		48,322
Total	$	176,236	$	60,537

Leases