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Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases

Note 3. Leases

We lease certain assets under operating leases, which at December 31, 2021 primarily consist of real estate leases for certain service center locations and automotive leases for private passenger vehicles. Certain operating leases provide for renewal options, which can vary by lease and are typically offered at their fair rental value. We have not made any residual value guarantees related to our operating leases; therefore, we have no corresponding liability recorded on our Balance Sheets.  

The right-of-use assets and corresponding lease liabilities on our Balance Sheet represent payments over the lease term, which includes renewal options for certain real estate leases that we are likely to exercise. These renewal options begin in 2022 and continue through 2033, and range from one to ten years in length. Short-term leases, which have an initial term of 12 months or less, are not included in our right-of-use assets, or corresponding lease liabilities.

Of our total lease liabilities, $14.0 million and $13.0 million are classified as current and are presented within “Other accrued liabilities,” and $88.8 million and $93.3 million are classified as non-current and is presented within “Other non-current liabilities,” on our Balance Sheet as of December 31, 2021 and 2020, respectively. Our right-of-use assets totaled $100.3 million and $104.4 million and are presented within “Other assets,” which is classified as long-term, on our Balance Sheet as of December 31, 2021 and 2020, respectively.

 


 

Future lease payments for assets under operating leases, as well as a reconciliation to our total lease liabilities as of December 31, 2021, are as follows:

(In thousands)

 

Lease Payments (a)

2022

 

$

16,909

 

2023

 

 

15,650

 

2024

 

 

13,480

 

2025

 

 

11,012

 

2026

 

 

10,734

 

Thereafter

 

 

53,463

 

Total lease payments

 

$

121,248

 

Less: imputed interest

 

 

(18,459

)

Total lease liabilities

 

$

102,789

 

 

(a) Lease payments include lease extensions that are reasonably certain to be exercised.

The weighted average lease term for our operating leases was 9.0 years and 9.4 years at December 31, 2021 and 2020, respectively. The discount rate used in the calculation of our right-of-use assets and corresponding lease liabilities was determined based on the stated rate within each contract when available, or our collateralized borrowing rate from lending institutions. The weighted average discount rate for our operating leases was 3.0% and 3.1% as of December 31, 2021 and 2020, respectively.

Cash paid for amounts included in the measurement of our operating leases was $17.6 million and $14.5 million for the years ended December 31, 2021 and 2020, respectively. Aggregate expense under operating leases was $19.0 million, $16.0 million and $14.7 million for 2021, 2020 and 2019, respectively. Certain operating leases include rent escalation provisions, which we recognize as expense on a straight-line basis. Lease expense is presented within “Operating supplies and expenses” or “General supplies and expenses,” depending on the nature of the use of the leased asset. During the years ended December 31, 2021 and 2020, we added $12.2 million and $51.1 million of right-of-use assets, respectively, in exchange for new operating lease liabilities.