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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | 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, 2020 and 2019 (in thousands):
| Year Ended December 31,
| 2020 |  | 2019
Operating lease cost | $ | 33,904 |  |  | $ | 35,335 |
Finance lease cost: |  |  |
Amortization of right of use assets | 585 |  |  | 625 |
Interest on lease liabilities | 2,681 |  |  | 117 |
Total finance lease cost | 3,266 |  |  | 742 |
Short-term lease cost | 11,663 |  |  | 6,655 |
Variable lease cost | 8,691 |  |  | 6,198 |
Total lease cost | $ | 57,524 |  |  | $ | 48,930 |
Rental expense was approximately $37.6 million for the year ended December 31, 2018. Supplemental cash flow information related to our lease contracts for the years ended December 31, 2020 and 2019 is as follows (in thousands):
| Year Ended December 31,
| 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 36,245 |  |  | $ | 29,946 |
Operating cash flows from finance leases | 1,568 |  |  | 117 |
Financing cash flows from finance leases | 663 |  |  | 678 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | 29,581 |  |  | 24,687 |
Finance leases(a) | — |  |  | 55,806 |
(a) Represents 60% ownership interest in finance lease acquired as part of the Wodgina Project acquisition. See Note 2, “Acquisitions,” for further details. Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at December 31, 2020 and 2019 is as follows (in thousands, except as noted):
| December 31,
| 2020 |  | 2019
Operating leases: |  |  |
Other assets | $ | 136,292 |  |  | $ | 133,864 |
Accrued expenses | 22,297 |  |  | 23,137 |
Other noncurrent liabilities | 116,765 |  |  | 114,686 |
Total operating lease liabilities | 139,062 |  |  | 137,823 |
Finance leases: |  |  |
Net property, plant and equipment | 58,963 |  |  | 59,494 |
Current portion of long-term debt(a) | 1,752 |  |  | 636 |
Long-term debt | 58,543 |  |  | 58,888 |
Total finance lease liabilities | 60,295 |  |  | 59,524 |
Weighted average remaining lease term (in years): |  |  |
Operating leases | 15.3 |  | 11.4
Finance leases | 27.5 |  | 28.3
Weighted average discount rate (%): |  |  |
Operating leases | 3.94 | % |  | 3.84 | %
Finance leases | 4.56 | % |  | 4.56 | %
(a) Balance includes accrued interest of finance lease. Maturities of lease liabilities as of December 31, 2020 were as follows (in thousands):
| Operating Leases |  | Finance Leases
2021 | $ | 25,620 |  |  | $ | 2,200 |
2022 | 20,428 |  |  | 4,479 |
2023 | 21,846 |  |  | 4,479 |
2024 | 10,794 |  |  | 4,479 |
2025 | 9,620 |  |  | 4,479 |
Thereafter | 132,365 |  |  | 89,918 |
Total lease payments | 220,673 |  |  | 110,034 |
Less imputed interest | 81,611 |  |  | 49,739 |
Total | $ | 139,062 |  |  | $ | 60,295 |
Leases | 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, 2020 and 2019 (in thousands):
| Year Ended December 31,
| 2020 |  | 2019
Operating lease cost | $ | 33,904 |  |  | $ | 35,335 |
Finance lease cost: |  |  |
Amortization of right of use assets | 585 |  |  | 625 |
Interest on lease liabilities | 2,681 |  |  | 117 |
Total finance lease cost | 3,266 |  |  | 742 |
Short-term lease cost | 11,663 |  |  | 6,655 |
Variable lease cost | 8,691 |  |  | 6,198 |
Total lease cost | $ | 57,524 |  |  | $ | 48,930 |
Rental expense was approximately $37.6 million for the year ended December 31, 2018. Supplemental cash flow information related to our lease contracts for the years ended December 31, 2020 and 2019 is as follows (in thousands):
| Year Ended December 31,
| 2020 |  | 2019
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | $ | 36,245 |  |  | $ | 29,946 |
Operating cash flows from finance leases | 1,568 |  |  | 117 |
Financing cash flows from finance leases | 663 |  |  | 678 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | 29,581 |  |  | 24,687 |
Finance leases(a) | — |  |  | 55,806 |
(a) Represents 60% ownership interest in finance lease acquired as part of the Wodgina Project acquisition. See Note 2, “Acquisitions,” for further details. Supplemental balance sheet information related to our lease contracts, including the location on balance sheet, at December 31, 2020 and 2019 is as follows (in thousands, except as noted):
| December 31,
| 2020 |  | 2019
Operating leases: |  |  |
Other assets | $ | 136,292 |  |  | $ | 133,864 |
Accrued expenses | 22,297 |  |  | 23,137 |
Other noncurrent liabilities | 116,765 |  |  | 114,686 |
Total operating lease liabilities | 139,062 |  |  | 137,823 |
Finance leases: |  |  |
Net property, plant and equipment | 58,963 |  |  | 59,494 |
Current portion of long-term debt(a) | 1,752 |  |  | 636 |
Long-term debt | 58,543 |  |  | 58,888 |
Total finance lease liabilities | 60,295 |  |  | 59,524 |
Weighted average remaining lease term (in years): |  |  |
Operating leases | 15.3 |  | 11.4
Finance leases | 27.5 |  | 28.3
Weighted average discount rate (%): |  |  |
Operating leases | 3.94 | % |  | 3.84 | %
Finance leases | 4.56 | % |  | 4.56 | %
(a) Balance includes accrued interest of finance lease. Maturities of lease liabilities as of December 31, 2020 were as follows (in thousands):
| Operating Leases |  | Finance Leases
2021 | $ | 25,620 |  |  | $ | 2,200 |
2022 | 20,428 |  |  | 4,479 |
2023 | 21,846 |  |  | 4,479 |
2024 | 10,794 |  |  | 4,479 |
2025 | 9,620 |  |  | 4,479 |
Thereafter | 132,365 |  |  | 89,918 |
Total lease payments | 220,673 |  |  | 110,034 |
Less imputed interest | 81,611 |  |  | 49,739 |
Total | $ | 139,062 |  |  | $ | 60,295 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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