Leases

12 Months Ended

Dec. 31, 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 years ended December 31, 2021 and 2020 (in thousands):


	Year Ended December 31,
	2021		2020
Operating lease cost	$	42,338	$	33,904
Finance lease cost:
Amortization of right of use assets	614		585
Interest on lease liabilities	3,010		2,681
Total finance lease cost	3,624		3,266

Short-term lease cost	11,084		11,663
Variable lease cost	8,002		8,691


Total lease cost	$	65,048	$	57,524

Supplemental cash flow information related to our lease contracts for the years ended December 31, 2021 and 2020 is as follows (in thousands):


	Year Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	33,030	$	36,245
Operating cash flows from finance leases	1,776		1,568
Financing cash flows from finance leases	687		663
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	56,814		29,581
Finance leases	17,096		—

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


	December 31,
	2021			2020
Operating leases:
Other assets	$	154,741		$	136,292

Accrued expenses	31,603			22,297
Other noncurrent liabilities	126,997			116,765
Total operating lease liabilities	158,600			139,062
Finance leases:
Net property, plant and equipment	75,302			58,963

Current portion of long-term debt(a)	3,768			1,752
Long-term debt	74,011			58,543
Total finance lease liabilities	77,779			60,295
Weighted average remaining lease term (in years):
Operating leases	12.9			15.3
Finance leases	24.5			27.5
Weighted average discount rate (%):
Operating leases	3.44		%	3.94		%
Finance leases	4.47		%	4.56		%

(a) Balance includes accrued interest of finance lease.

Maturities of lease liabilities as of December 31, 2021 were as follows (in thousands):


	Operating Leases		Finance Leases
2022	$	36,552	$	5,018
2023	33,368		6,222
2024	20,367		6,222
2025	14,588		6,222
2026	9,689		5,544
Thereafter	122,717		97,682
Total lease payments	237,281		126,910
Less imputed interest	78,681		49,131
Total	$	158,600	$	77,779

Leases