Leases

12 Months Ended

Dec. 31, 2020

We are a lessee in various agreements for the lease of office space, land, automobiles, and mobile equipment. All our leases are considered operating leases. The terms of our leases vary, including the lease term and the ability to renew or extend certain leases. As part of determining the lease term and potential extensions for purposes of calculating the ROUA and ROUL, we consider our historical practices related to renewal of certain leases. The weighted average remaining lease term for our operating leases was 14.2 years as of December 31, 2020 and 13.6 years as of December 31, 2019. Certain lease payment amounts are variable in nature and change periodically based on the local market consumer price index.

We use our incremental borrowing rate as the basis for the discount rate used to calculate the ROUA and ROUL, respectively, for our operating leases. The incremental borrowing rate is determined on a lease-by-lease basis and is based on the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term for an amount equal to our lease payments. We consider the most likely financing options available for each lease based on the leased asset, legal entity party to the lease, economic environment in which the lease is denominated, the market conditions relative to the leased asset and our historical practices of obtaining financing for similar types of costs. The weighted average discount rate for our operating leases was 7.3% as of December 31, 2020 and 2019.

Our ROUA and ROUL balances for the years ended December 31, 2020 and December 31, 2019 were as follows (in millions):


	December 31, 2020		December 31, 2019
ROUA(1)	$	24.9	$	25.2

ROUL - current(2)	$	1.6	$	2.8
ROUL - non-current(3)	$	24.3	$	22.8
Total ROUL	$	25.9	$	25.6

(1) ROUA was recorded as part of Other Assets within Non-current assets at December 31, 2020 and 2019.

(2) ROUL - current was recorded as part of Accrued and other current liabilities within Current liabilities at December 31, 2020 and 2019.

(3) ROUL - non-current was recorded as Leases - Right of use liabilities as part of Non-current liabilities at December 31, 2020 and 2019

The undiscounted maturities of our operating lease liability balances are as follows (in millions):


Year	As of December 31, 2020
2021	$	3.4
2022	3.0
2023	2.7
2024	2.7
2025	2.7
Thereafter	29.1
Total	43.6
Less: Interest	(17.7)
ROUL	$	25.9

During 2020 and 2019, we entered into new lease obligations, which resulted in $1.2 million and $1.4 million of additional right of use assets.

Total operating expense includes the following (in millions):


	December 31, 2020	December 31, 2019
Operating leases expense	4.7	4.9
Short term lease expense	0.5	3.2
Total(1)	5.2	8.1

(1) Total lease expense is included in cost of goods sold and selling, general, and administrative expenses on the Consolidated Statements of Operations.

We had cash outflows of $4.2 million for amounts included in the ROUL balance at the beginning of the year related to our operating leases for the years ended December 31, 2020 and December 31, 2019.