|3 Months Ended|
Mar. 31, 2019
Note 4. Leases
We lease certain assets under operating leases, which primarily consist of real estate leases for 32 of our 235 service center locations and automotive leases for our Company-owned 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 Condensed Balance Sheets.
The right-of-use assets and corresponding lease liabilities on our Condensed 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 range from one to ten years in length and begin in 2020 and continue through 2033. Short-term leases, which have an initial term of 12 months or less, are not included in our right-of-use assets.
Of our total lease liabilities, $10.4 million is classified as current and is presented within “Other accrued liabilities,” and $58.6 million is classified as non-current and is presented within “Other non-current liabilities,” on our Condensed Balance Sheet as of March 31, 2019. Our right-of-use assets totaled $67.8 million and are presented within “Other assets,” which is classified as long-term, on our Condensed Balance Sheet as of March 31, 2019.
Future lease payments for assets under operating leases, as well as a reconciliation to our total lease liabilities as of March 31, 2019, are as follows:
The weighted average lease term for our operating leases was 9.5 years as of March 31, 2019. 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 4.2% as of March 31, 2019.
For the three-month period ended March 31, 2019, cash paid for amounts included in the measurement of our operating leases was $3.5 million, while the aggregate lease expense under operating leases was $3.6 million. 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.
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://www.xbrl.org/2003/role/disclosureRef