10. LEASES

A reconciliation of lease obligations for the nine months ended September 30, 2021, is as follows:

All extension options that are reasonably certain to be exercised have been included in the measurement of lease obligations. The Company reassesses the likelihood of extension option exercise if there is a significant event or change in circumstances within its control.

The components of lease expense for the three and nine months ended September 30, 2021 and 2020 are as follows:

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(1) Included in cost of goods sold and general and administrative expenses in the consolidated statement of operations.

(2) Included in interest expense in the consolidated statement of operations.

The key assumptions used in accounting for leases as of September 30, 2021 were a weighted average remaining lease term of 15.2 years and a weighted average discount rate of 6%. The key assumptions used in accounting for leases as of December 31, 2020 were a weighted average remaining lease term of 18.1 years and a weighted average discount rate of 6%.

The future lease payments with initial remaining terms in excess of one year as of September 30, 2021 were as follows: