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Leases

6 Months Ended

Jun. 30, 2022

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, 2022 and 2021 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Operating lease cost	$	10,590	$	9,735	$	21,201	$	19,147
Finance lease cost:
Amortization of right of use assets	972		156		1,402		313
Interest on lease liabilities	840		752		1,693		1,507
Total finance lease cost	1,812		908		3,095		1,820

Short-term lease cost	3,271		2,176		5,970		4,780
Variable lease cost	1,914		1,813		2,631		4,178


Total lease cost	$	17,587	$	14,632	$	32,897	$	29,925

Supplemental cash flow information related to our lease contracts for the six-month periods ended June 30, 2022 and 2021 is as follows (in thousands):


	Six Months Ended June 30,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	17,539	$	14,980
Operating cash flows from finance leases	1,185		876
Financing cash flows from finance leases	661		316
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	1,560		50,856

Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at June 30, 2022 and December 31, 2021 is as follows (in thousands, except as noted):


	June 30, 2022			December 31, 2021
Operating leases:
Other assets	$	135,143		$	154,741

Accrued expenses	30,669			31,603
Other noncurrent liabilities	106,947			126,997
Total operating lease liabilities	137,616			158,600
Finance leases:
Net property, plant and equipment	72,983			75,302

Current portion of long-term debt(a)	4,199			3,768
Long-term debt	72,194			74,011
Total finance lease liabilities	76,393			77,779
Weighted average remaining lease term (in years):
Operating leases	13.5			12.9
Finance leases	24.5			24.5
Weighted average discount rate (%):
Operating leases	3.58		%	3.44		%
Finance leases	4.46		%	4.47		%

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

Maturities of lease liabilities at June 30, 2022 were as follows (in thousands):


	Operating Leases		Finance Leases
Remainder of 2022	$	17,928	$	3,038
2023	31,878		6,077
2024	19,464		6,077
2025	11,921		6,077
2026	9,783		5,442
Thereafter	122,295		97,215
Total lease payments	213,269		123,926
Less imputed interest	75,653		47,533
Total	$	137,616	$	76,393

Leases