Leases

3 Months Ended

Mar. 31, 2021

We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for certain plant equipment and one of our production facilities which are recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets. Our finance lease ROU assets and finance lease liabilities were $15,419 and $15,933, respectively, as of March 31, 2021, and $15,772 and $16,173, respectively, as of December 31, 2020. Our leases have remaining lease terms of up to 19.4 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the lease.

We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis.

We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities.

The components of lease expense were as follows:


	Three Months Ended March 31,
	2021		2020
Lease expense
Operating lease expense	$	7,577	$	7,911
Finance lease expense:
Amortization of ROU assets	443		266
Interest on lease liabilities	110		49
Short-term lease expense	5,890		6,426

Total lease expense	$	14,020	$	14,652

Other information related to leases was as follows:


	Three Months Ended March 31,
	2021			2020
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,810		$	6,718
Operating cash flows from finance leases	110			49
Financing cash flows from finance leases	329			200

ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,013		$	3,784
Finance leases	$	89		$	440


	March 31, 2021			December 31, 2020
Weighted-average remaining lease term (in years):
Operating leases	4.6			4.7
Finance leases	12.3			12.5

Weighted-average discount rate:
Operating leases	3.3		%	3.4		%
Finance leases	2.8		%	2.8		%

Leases

The components of lease expense were as follows:


	Three Months Ended March 31,
	2021		2020
Lease expense
Operating lease expense	$	7,577	$	7,911
Finance lease expense:
Amortization of ROU assets	443		266
Interest on lease liabilities	110		49
Short-term lease expense	5,890		6,426

Total lease expense	$	14,020	$	14,652

Other information related to leases was as follows:


	Three Months Ended March 31,
	2021			2020
Supplemental Cash Flows Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,810		$	6,718
Operating cash flows from finance leases	110			49
Financing cash flows from finance leases	329			200

ROU assets obtained in exchange for lease obligations:
Operating leases	$	3,013		$	3,784
Finance leases	$	89		$	440


	March 31, 2021			December 31, 2020
Weighted-average remaining lease term (in years):
Operating leases	4.6			4.7
Finance leases	12.3			12.5

Weighted-average discount rate:
Operating leases	3.3		%	3.4		%
Finance leases	2.8		%	2.8		%