LEASES

6 Months Ended

Jun. 30, 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 terms and discount rates are as follows:



		June 30	December 31	June 30
in thousands	Classification on the Balance Sheet	2021	2020	2020
Assets
Operating lease ROU assets		$ 530,760	$ 482,513	$ 472,003
Accumulated amortization		(65,995)	(59,385)	(45,385)
Operating leases, net	Operating lease right-of-use assets, net	464,765	423,128	426,618
Finance lease assets		11,061	7,796	6,223
Accumulated amortization		(2,970)	(1,640)	(737)
Finance leases, net	Property, plant & equipment, net	8,091	6,156	5,486
Total lease assets		$ 472,856	$ 429,284	$ 432,104
Liabilities
Current
Operating	Other current liabilities	$ 36,694	$ 36,969	$ 32,645
Finance	Other current liabilities	2,815	2,047	1,695
Noncurrent
Operating	Noncurrent operating lease liabilities	443,128	399,582	405,578
Finance	Other noncurrent liabilities	5,325	4,139	3,807
Total lease liabilities		$ 487,962	$ 442,737	$ 443,725
Lease Term and Discount Rate
Weighted-average remaining lease term (years)
Operating leases		9.1	9.5	10.4
Finance leases		3.8	4.2	4.4
Weighted-average discount rate
Operating leases		3.3%	3.6%	4.1%
Finance leases		1.3%	1.4%	1.5%

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		Six Months Ended
	June 30		June 30
in thousands	2021	2020	2021	2020
Lease Cost
Finance lease cost
Amortization of right-of-use assets	$ 699	$ 369	$ 1,330	$ 673
Interest on lease liabilities	30	25	60	47
Operating lease cost	15,517	14,234	30,809	28,340
Short-term lease cost ¹	5,345	7,676	10,447	16,721
Variable lease cost	2,779	3,773	5,470	6,905
Sublease income	(834)	(721)	(1,657)	(1,456)
Total lease cost	$ 23,536	$ 25,356	$ 46,459	$ 51,230


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 $28,738,000 and $26,559,000 for the six months ended June 30, 2021 and 2020, respectively. Cash paid for finance leases was $1,310,000 and $658,000 for the six months ended June 30, 2021 and 2020, respectively.