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Leases

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2021 and 2020 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	13,807	$	8,085	$	32,954	$	25,298
Finance lease cost:
Amortization of right of use assets	153		126		466		433
Interest on lease liabilities	722		697		2,229		1,977
Total finance lease cost	875		823		2,695		2,410

Short-term lease cost	2,949		3,427		7,729		9,824
Variable lease cost	2,441		2,312		6,619		6,344


Total lease cost	$	20,072	$	14,647	$	49,997	$	43,876

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


	Nine Months Ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,462	$	28,074
Operating cash flows from finance leases	1,295		1,156
Financing cash flows from finance leases	471		513
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	57,136		17,197

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


	September 30, 2021			December 31, 2020
Operating leases:
Other assets	$	165,970		$	136,292

Accrued expenses	33,862			22,297
Other noncurrent liabilities	136,552			116,765
Total operating lease liabilities	170,414			139,062
Finance leases:
Net property, plant and equipment	58,375			58,963

Current portion of long-term debt(a)	2,658			1,752
Long-term debt	57,968			58,543
Total finance lease liabilities	60,626			60,295
Weighted average remaining lease term (in years):
Operating leases	12.6			15.3
Finance leases	27.0			27.5
Weighted average discount rate (%):
Operating leases	3.46		%	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 September 30, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2021	$	10,126	$	542
2022	38,503		4,448
2023	34,453		4,448
2024	20,984		4,448
2025	14,714		4,448
Thereafter	131,456		89,916
Total lease payments	250,236		108,250
Less imputed interest	79,822		47,624
Total	$	170,414	$	60,626

Leases

Leases:

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	13,807	$	8,085	$	32,954	$	25,298
Finance lease cost:
Amortization of right of use assets	153		126		466		433
Interest on lease liabilities	722		697		2,229		1,977
Total finance lease cost	875		823		2,695		2,410

Short-term lease cost	2,949		3,427		7,729		9,824
Variable lease cost	2,441		2,312		6,619		6,344


Total lease cost	$	20,072	$	14,647	$	49,997	$	43,876

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


	Nine Months Ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	24,462	$	28,074
Operating cash flows from finance leases	1,295		1,156
Financing cash flows from finance leases	471		513
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	57,136		17,197


	September 30, 2021			December 31, 2020
Operating leases:
Other assets	$	165,970		$	136,292

Accrued expenses	33,862			22,297
Other noncurrent liabilities	136,552			116,765
Total operating lease liabilities	170,414			139,062
Finance leases:
Net property, plant and equipment	58,375			58,963

Current portion of long-term debt(a)	2,658			1,752
Long-term debt	57,968			58,543
Total finance lease liabilities	60,626			60,295
Weighted average remaining lease term (in years):
Operating leases	12.6			15.3
Finance leases	27.0			27.5
Weighted average discount rate (%):
Operating leases	3.46		%	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 September 30, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2021	$	10,126	$	542
2022	38,503		4,448
2023	34,453		4,448
2024	20,984		4,448
2025	14,714		4,448
Thereafter	131,456		89,916
Total lease payments	250,236		108,250
Less imputed interest	79,822		47,624
Total	$	170,414	$	60,626