LEASES

3 Months Ended

Mar. 31, 2021

Note 2: Leases

Our portfolio of nonmineral leases is composed of 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).

Lease right-of-use (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	2021	2020	2020
Assets
Operating lease ROU assets	Operating lease right-of-use assets, net	$ 488,607	$ 482,513	$ 461,712
Accumulated amortization		(66,982)	(59,385)	(40,782)
Finance lease assets	Property, plant & equipment, net	10,638	7,796	3,910
Accumulated amortization		(2,271)	(1,640)	(369)
Total lease assets		$ 429,992	$ 429,284	$ 424,471
Liabilities
Current
Operating	Other current liabilities	$ 38,131	$ 36,969	$ 32,045
Finance	Other current liabilities	2,718	2,047	1,197
Noncurrent
Operating	Operating lease liabilities	397,306	399,582	399,489
Finance	Other noncurrent liabilities	5,688	4,139	2,349
Total lease liabilities		$ 443,843	$ 442,737	$ 435,080
Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases		9.2	9.5	10.1
Finance leases		4.0	4.2	3.1
Weighted-average discount rate
Operating leases		3.3%	3.6%	4.2%
Finance leases		1.3%	1.4%	2.7%

Our lease agreements do not contain residual value guarantees, restrictive covenants or early termination options that we deem material. We have not sought or been granted any material lease concessions as a result of the COVID-19 pandemic.

The components of lease expense are as follows:



	Three Months Ended
	March 31
in thousands	2021	2020
Lease Cost
Finance lease cost
Amortization of right-of-use assets	$ 632	$ 304
Interest on lease liabilities	30	22
Operating lease cost	15,292	14,106
Short-term lease cost ¹	5,102	9,059
Variable lease cost	2,691	3,132
Sublease income	(824)	(734)
Total lease cost	$ 22,923	$ 25,889


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 $14,521,000 and $13,328,000 for the three months ended March 31, 2021 and 2020, respectively. Cash paid for finance leases was $621,000 and $301,000 for the three months ended March 31, 2021 and 2020, respectively.