Leases

12 Months Ended

Dec. 31, 2020

NOTE 14. LEASES

We account for leases in accordance with ASC Topic 842, Leases, which we adopted on January 1, 2019 using the effective date as our date of initial application. Consequently, financial information will not be updated, and the disclosures required under the new standard will not be provided for periods before January 1, 2019. See Note 1: Summary of Significant Accounting Policies for further detail on our policies surrounding leases.

Balance Sheet Classification

The following tables provide supplemental balance sheet information related to our leases as of December 31:

(in thousands)	Classification	2020		2019
Assets
Operating lease assets	Other long-term assets	$	11,081	$	15,772
Finance lease assets¹	Property, plant and equipment, net		7,206		2,360
Total lease assets		$	18,287	$	18,132

Liabilities
Current
Operating lease liabilities	Accounts payable and accrued liabilities	$	4,304	$	4,998
Finance lease liabilities	Accounts payable and accrued liabilities		2,202		644
Noncurrent
Operating lease liabilities	Other long-term obligations		6,835		10,775
Finance lease liabilities	Other long-term obligations		4,914		1,703
Total lease liabilities		$	18,255	$	18,120

¹	Finance lease assets are presented net of accumulated amortization of $1.7 million and $0.3 million as of December 31, 2020 and 2019, respectively.

	2020			2019
Weighted-average remaining terms (years)
Operating leases		3.80			4.22
Finance leases		3.59			3.83
Weighted-average discount rate
Operating leases		4.13	%		4.17	%
Finance leases		2.76	%		3.54	%

Lease Costs

The following table summarizes the components of our lease expense as of December 31:

	Year Ended December 31,
(in thousands)	2020		2019		2018
Operating lease costs¹	$	5,640	$	5,938	$	4,989
Finance lease costs:
Amortization of leased assets		1,451		269		—
Interest on lease assets		153		40		—
Net lease costs	$	7,244	$	6,247	$	4,989

¹	Excludes short-term leases and variable lease costs, which are immaterial.

Operating lease costs and amortization of finance lease assets are included within costs of goods sold and selling, general and administrative expenses and interest on leased assets is included in interest expense, net on our Consolidated Statements of Operations.

Other Lease Information

The following table presents supplemental cash flow information related to leases as of December 31:

(in thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	5,627	$	5,963
Operating cash flows for finance leases	$	153	$	40
Financing cash flows for finance leases	$	1,526	$	283
Leased assets exchanged for new lease liabilities:
Operating leases	$	447	$	7,135
Finance leases	$	6,295	$	2,630

Maturity of Lease Liabilities

At December 31, 2020, the future minimum lease payment obligations under noncancelable leases were as follows:

(in thousands)	Operating Leases		Finance Leases
2021	$	4,670	$	2,369
2022		2,834		2,278
2023		1,879		1,589
2024		986		868
2025		692		276
After 2025		1,000		91
Total lease payments		12,061		7,471
Less: interest		922		355
Present value of lease liabilities	$	11,139	$	7,116