|12 Months Ended|
Dec. 31, 2020
Note 3. Leases
We lease certain assets under operating leases, which at December 31, 2020 primarily consist of real estate leases for 27 of our 244 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 2021 and continue through 2033, and range fromin 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, $13.0 million and $10.4 million are classified as current and are presented within “Other accrued liabilities,” and $93.3 million and $56.1 million are classified as non-current and is presented within “Other non-current liabilities,” on our Balance Sheet as of December 31, 2020 and 2019, respectively. Our right-of-use assets totaled $104.4 million and $65.3 million and are presented within “Other assets,” which is classified as long-term, on our Balance Sheet as of December 31, 2020 and 2019, respectively.
Future lease payments for assets under operating leases, as well as a reconciliation to our total lease liabilities as of December 31, 2020, are as follows:
(a) Lease payments include lease extensions that are reasonably certain to be exercised
The weighted average lease term for our operating leases was 9.4 years at each of December 31, 2020 and 2019, 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 3.1% and 4.0% as of December 31, 2020 and 2019, respectively.
Cash paid for amounts included in the measurement of our operating leases was $14.5 million and $14.3 million for the years ended December 31, 2020 and 2019, respectively. Aggregate expense under operating leases was $16.0 million, $14.7 million and $12.6 million for 2020, 2019 and 2018, 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, 2020 and 2019, we added $51.1 million and $8.3 million of right-of-use assets, respectively, in exchange for new operating lease liabilities.
The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.
Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef