LEASES

3 Months Ended

Mar. 31, 2020

Note 2: Leases

Our portfolio of nonmineral leases is composed almost entirely of operating leases (we do not have any material finance leases) for real estate (including office buildings, aggregates sales yards, and concrete and asphalt sites) and equipment (including railcars and rail track, barges, office equipment and plant equipment).

Operating lease ROU assets and liabilities and the weighted-average lease term and discount rate are as follows:



		March 31	December 31	March 31
in thousands	Classification on the Balance Sheet	2020	2019	2019
Assets
Operating lease ROU assets		$ 461,712	$ 441,656	$ 434,970
Accumulated amortization		(40,782)	(33,467)	(8,589)
Total lease assets	Operating lease right-of-use assets, net	$ 420,930	$ 408,189	$ 426,381
Liabilities
Current
Operating	Other current liabilities	$ 32,045	$ 29,971	$ 31,255
Noncurrent
Operating	Operating lease liabilities	399,489	388,042	403,426
Total lease liabilities		$ 431,534	$ 418,013	$ 434,681
Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases		10.1	9.9	10.3
Weighted-average discount rate
Operating leases		4.2%	4.3%	4.4%

Our lease agreements do not contain residual value guarantees, restrictive covenants or early termination options that we deem material.

Lease expense for operating leases is recognized on a straight-line basis over the lease term. The components of operating lease expense are as follows:



	Three Months Ended
	March 31
in thousands	2020	2019
Lease Cost
Operating lease cost	$ 14,106	$ 14,127
Short-term lease cost ¹	9,385	8,700
Variable lease cost	3,132	3,068
Sublease income	(734)	(610)
Total lease cost	$ 25,889	$ 25,285


¹	Our short-term lease cost includes the cost of leases with an initial term of one month or less.

Cash paid for operating leases was $13,328,000 and $13,333,000 for the three months ended March 31, 2020 and 2019, respectively, and was reflected as reductions to operating cash flows.

Maturity analysis on an undiscounted basis of our operating lease liabilities as of March 31, 2020 is as follows:



		Operating
in thousands		Leases
Maturity of Lease Liabilities
2020 (remainder)		$ 39,045
2021		49,240
2022		44,481
2023		39,295
2024		35,634
Thereafter		593,029
Total minimum lease payments		$ 800,724
Less: Lease payments representing interest		369,190
Present value of future minimum lease payments		$ 431,534
Less: Current obligations under leases		32,045
Long-term lease obligations		$ 399,489