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Note 7 - Leases

12 Months Ended

Dec. 31, 2020

(7) LEASES

We have operating leases primarily for office space, temporary residences, automobiles and office equipment. Contracts containing assets that we benefit from and control are recognized on our balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognized lease expense for these leases on a straight-line basis over the lease term. We combine the lease and non-lease components for all of our lease agreements.

Certain leases include one or more options to renew, with renewal terms that can extend the lease term from one to ten years. The exercise of lease renewal options is at our sole discretion, and lease renewal options are not included in our lease terms if they are not reasonably certain to be exercised. Our lease agreements do not contain any residual value guarantees or restrictive covenants or options to purchase the leased property. The amount of right of use assets and lease liabilities recorded on our Consolidated Balance Sheet at December 31, 2020 and 2019, respectively, are as follows.

Leases (In thousands)	Classification	December 31, 2020		December 31, 2019
Assets:
Operating	Other assets	$	3,372	$	4,338
Liabilities:
Current
Operating	Other current liabilities		1,134		501
Noncurrent
Operating	Other liabilities		2,668		4,274
Total lease liabilities		$	3,802	$	4,775

Future payments to be made on our operating lease liabilities at December 31, 2020 will be as follows.

Maturity of lease liabilities (In thousands)	Operating leases
2021	$	1,318
2022		1,094
2023		717
2024		273
2025		273
After 2025		547
Total lease payments	$	4,222
Less: Interest		(420	)
Present value of lease liabilities	$	3,802

As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

We used the incremental borrowing rate on January 1, 2019 for operating leases that began prior to that date.

Lease costs included in general and administrative expense for the two years ended December 31, 2020 and 2019, respectively, is as follows.

		Year Ended		Year Ended
Lease costs (In thousands)	Classification	December 31, 2020		December 31, 2019
Operating lease costs	General and administrative		1,270		1,336
Short-term leases	General and administrative		3,483		4,840
Variable lease costs	General and administrative		392		313
Sublease income	General and administrative		—		(3	)
Net lease cost			5,145		6,486

Our weighted average remaining lease term and weighted average discount rate at December 31, 2020 is as follows.

Lease term and discount rate	December 31, 2020
Weighted average remaining lease term in years		3.1
Weighted average discount rate		7.3	%

The cash paid for operating leases included in operating cash flows and in the measurement of lease liabilities for the years ended December 31, 2020 and 2019 was $1.0 million and $1.4 million, respectively. Right-of-use assets obtained in exchange for operating lease obligations were $0.3 million and $0.8 million, for the years ended December 31, 2020 and 2019, respectively.