We lease certain equipment, office space and land. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet.

Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion and we consider these options in determining the lease term used to establish our right-of-use assets and lease liabilities. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or a purchase option reasonably certain of exercise.

We determine that a contract contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. In evaluating whether we have the right to control the use of an identified asset, we assess whether or not we have the right to control the use of the identified asset and to obtain substantially all of the economic benefit from the use of the identified asset.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

Certain of our lease agreements include payments that adjust periodically for consumption of goods provided by the right-of-use asset in excess of contractually determined minimum amounts and for inflation. These variable lease payments are not significant. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental statement of earnings information related to our leases is as follows (in thousands):

		Year Ended
	Statement of Earnings Classification	December 31, 2019
Operating lease cost	Cost of products sold	$	21,275
Operating lease cost	Marketing, administrative and other expenses		2,196
Total operating lease cost		$	23,471
Finance lease cost:
Amortization of leased assets	Cost of products sold	$	9,810
Interest on lease liabilities	Interest expense, net		11,335
Total finance lease cost		$	21,145
Total lease cost		$	44,616

Supplemental cash flow information related to our leases is as follows (in thousands):

	Year Ended
	December 31, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	23,155
Operating cash flows from finance leases	$	11,335
Financing cash flows from finance leases	$	9,134
Non-cash investing and financing activities:
Additions to right-of-use assets obtained from
Operating lease liabilities	$	11,941
Finance lease liabilities	$	11,406

Supplemental balance sheet information related to our leases is as follows (in thousands):

	Balance Sheet Classification	December 31, 2019
Assets:
Operating lease	Other assets	$	91,123
Finance lease	Property, plant and equipment, net		72,364
Total leased		$	163,487
Liabilities:
Current operating	Accrued expenses and other current liabilities	$	17,647
Current finance	Current portion of long-term debt and finance lease obligations		9,264
Non-current operating	Deferred credits and other liabilities		74,877
Non-current finance	Long-term debt and finance lease obligations due after one year		75,960
Total leased		$	177,748

Weighted-average remaining lease term and discount rate for our leases are as follows:

The reason for the substantial weighted-average discount rate – finance leases, of 29.4%, is due to Nucor’s past accounting for the respective finance leases under the former accounting guidance for capital leases. Pursuant to the former lease accounting guidance, the recognition of a capital lease asset and associated capital lease liability could not exceed the fair market value of the leased asset at the lease commencement. Accordingly, the incremental borrowing rate was adjusted upward so that the present value of the minimum lease payments would equal the fair value of the asset.

Maturities of lease liabilities by year for our leases were as follows as of December 31, 2019 (in thousands):

	Operating Leases			Finance Leases
Maturities of lease liabilities, year ending December 31,
2020	$	20,382		$	19,802
2021		17,961			19,334
2022		15,797			18,466
2023		12,652			16,554
2024		9,988			11,922
Thereafter		35,149			73,742
Total lease payments	$	111,929		$	159,820
Less imputed interest		(19,405	)		(74,596	)
Present value of lease liabilities	$	92,524		$	85,224

Prior Period Disclosures - As a result of adopting the new lease accounting guidance on January 1, 2019 under the modified retrospective approach, the Company is required to present future minimum lease commitments for capital leases and operating leases having initial or noncancellable lease terms in excess of one year that were previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2018 and accounted for under the former lease guidance.

Total future minimum lease payments related to capital leases at December 31, 2018 were $154.8 million, with the timing of those payments estimated at that date to be made as follows: $17.7 million in 2019; a total of $33.6 million to be paid between 2020 and 2021; a total of $30.0 million to be paid between 2022 and 2023; and $73.4 million to be paid thereafter.

Total future minimum lease payments related to operating leases having initial or noncancellable lease terms in excess of one year at December 31, 2018 were $128.6 million, with the timing of those payments estimated at that date to be made as follows: $31.8 million in 2019; a total of $45.0 million to be paid between 2020 and 2021; a total of $28.4 million to be paid between 2022 and 2023; and $23.5 million to be paid thereafter.

The gross amount of assets recorded under capital leases was $89.4 million as of December 31, 2018, which primarily consisted of buildings and improvements or machinery and equipment.