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Leases | 12 Months Ended
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Dec. 31, 2020
Leases [Abstract] |
Leases | Leases The Company leases real estate, trucks and other equipment. The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Classification and initial measurement of the right-of-use asset and lease liability are determined at the lease commencement date. The Company elected the short-term lease measurement and recognition exemption; therefore, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. The Company's arrangements include certain non-lease components such as common area and other maintenance for leased real estate, as well as mileage, fuel and maintenance costs related to leased vehicles. For all leased asset classes, the Company has elected to not separate non-lease components from lease components and will account for each separate lease component and non-lease component associated with the lease as a single lease component. The Company does not guarantee any residual value in its lease agreements, and there are no material restrictions or covenants imposed by lease arrangements. Real estate leases typically include one or more options to extend the lease. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. For our leased vehicles, the Company uses the incremental borrowing rate in its leases with the lessor to discount lease payments at the lease commencement date. When the stated rate is not readily available, as is the case with our real estate leases, the Company uses quoted borrowing rates on our secured debt. The following table summarizes the lease amounts included in our consolidated balance sheets as of December 31, 2020 and December 31, 2019:
(in thousands) | Classification on the Consolidated Balance Sheet | December 31, 2020 |  | December 31, 2019
Assets |  |  |  |
Operating | Operating lease right-of-use assets (a) | 18,751 |  |  | $ | 21,056 |
Finance | Property and equipment, net (b) | 6,242 |  |  | 6,412 |
Total lease assets |  | $ | 24,993 |  |  | $ | 27,468 |
Liabilities |  |  |  |
Current |  |  |  |
Operating | Current operating lease liabilities | 3,929 |  |  | $ | 3,750 |
Finance | Current portion of long-term debt | 2,536 |  |  | 2,424 |
Noncurrent |  |  |  |
Operating | Long-term operating lease liabilities | 15,459 |  |  | 18,247 |
Finance | Long-term debt | 3,923 |  |  | 4,161 |
Total lease liabilities |  | $ | 25,847 |  |  | $ | 28,582 |
(a) Operating lease assets are recorded net of accumulated amortization of $11.9 million and $8.5 million at December 31, 2020 and December 31, 2019, respectively. (b) Finance lease assets are recorded net of accumulated amortization of $5.3 million and $4.7 million at December 31, 2020 and December 31, 2019, respectively. The following table summarizes the lease costs included in our consolidated statements of operations for the years ended December 31, 2020 and December 31, 2019:
(in thousands) | Classification on the Consolidated Statement of Operations |  | December 31, 2020 |  | December 31, 2019
Operating lease cost | Cost of revenue(a) |  | $ | 3,527 |  |  | $ | 3,497 |
Operating lease cost | Selling, general and administrative(a) |  | 1,483 |  |  | 1,351 |
Finance lease cost |  |  |  |  |
Amortization | Cost of revenue(b) |  | 2,711 |  |  | 2,517 |
Interest | Interest income (expense), net(b) |  | 363 |  |  | 333 |
Total lease cost |  |  | $ | 8,084 |  |  | $ | 7,698 |
(a) Operating lease costs recorded in cost of sales includes $0.7 million of variable lease costs for the years ended December 31, 2020 and December 31, 2019, respectively. In addition, $0.3 million and $0.2 million of variable lease costs are included in selling, general and administrative expenses for the years ended December 31, 2020 and December 31, 2019, respectively. These variable costs consist of our proportionate share of operating expenses, real estate taxes, and utilities. (b) Finance lease costs recorded in cost of revenue includes $2.4 million and $2.9 million of variable leases costs for the years ended December 31, 2020 and December 31, 2019, respectively. These variable lease costs consist of fuel, maintenance, and sales tax charges. No variable lease costs for finance leases were recorded in selling, general and administrative expenses for the years ended December 31, 2020 or December 31, 2019. Future minimum commitments for finance and operating leases that have non-cancelable lease terms in excess of one year as of the year ended December 31, 2020 were as follows (in thousands):
Year ending December 31: | Finance Leases |  | Operating Leases
2021 | $ | 2,826 |  |  | $ | 4,908 |
2022 | 2,316 |  |  | 4,606 |
2023 | 1,320 |  |  | 3,516 |
2024 | 509 |  |  | 2,917 |
2025 | 4 |  |  | 2,409 |
Thereafter | — |  |  | 4,043 |
Total minimum lease payments | $ | 6,975 |  |  | $ | 22,399 |
Amounts representing interest | (516) |  |  |
Present value of net minimum lease payments | $ | 6,459 |  |  |
The following is a summary of the lease terms and discount rates as of:
| December 31, 2020 |  | December 31, 2019
Weighted average lease term (in years) |  |  |
Operating | 5.48 |  | 6.20
Finance | 2.78 |  | 2.96
Weighted average discount rate |  |  |
Operating | 4.83 | % |  | 4.80 | %
Finance | 5.50 | % |  | 5.69 | %
The following is a summary of other information and supplemental cash flow information related to finance and operating leases for the years ended:
(in thousands) | December 31, 2020 |  | December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 5,164 |  |  | $ | 4,722 |
Operating cash flows from finance leases | 363 |  |  | 333 |
Financing cash flows from finance leases | 2,664 |  |  | 2,469 |
Right-of-use assets exchanged for lease liabilities |  |  |
Operating leases | $ | 1,096 |  |  | $ | 3,355 |
Finance leases | 2,624 |  |  | 3,578 |
Right-of-use assets disposed or adjusted modifying operating leases liabilities | $ | 621 |  |  | $ | 1,651 |
Right-of-use assets disposed or adjusted modifying finance leases liabilities | $ | (86) |  |  | $ | (78) |
Leases | Leases The Company leases real estate, trucks and other equipment. The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Classification and initial measurement of the right-of-use asset and lease liability are determined at the lease commencement date. The Company elected the short-term lease measurement and recognition exemption; therefore, leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. The Company's arrangements include certain non-lease components such as common area and other maintenance for leased real estate, as well as mileage, fuel and maintenance costs related to leased vehicles. For all leased asset classes, the Company has elected to not separate non-lease components from lease components and will account for each separate lease component and non-lease component associated with the lease as a single lease component. The Company does not guarantee any residual value in its lease agreements, and there are no material restrictions or covenants imposed by lease arrangements. Real estate leases typically include one or more options to extend the lease. The Company regularly evaluates the renewal options, and when they are reasonably certain of exercise, the Company includes the renewal period in its lease term. For our leased vehicles, the Company uses the incremental borrowing rate in its leases with the lessor to discount lease payments at the lease commencement date. When the stated rate is not readily available, as is the case with our real estate leases, the Company uses quoted borrowing rates on our secured debt. The following table summarizes the lease amounts included in our consolidated balance sheets as of December 31, 2020 and December 31, 2019:
(in thousands) | Classification on the Consolidated Balance Sheet | December 31, 2020 |  | December 31, 2019
Assets |  |  |  |
Operating | Operating lease right-of-use assets (a) | 18,751 |  |  | $ | 21,056 |
Finance | Property and equipment, net (b) | 6,242 |  |  | 6,412 |
Total lease assets |  | $ | 24,993 |  |  | $ | 27,468 |
Liabilities |  |  |  |
Current |  |  |  |
Operating | Current operating lease liabilities | 3,929 |  |  | $ | 3,750 |
Finance | Current portion of long-term debt | 2,536 |  |  | 2,424 |
Noncurrent |  |  |  |
Operating | Long-term operating lease liabilities | 15,459 |  |  | 18,247 |
Finance | Long-term debt | 3,923 |  |  | 4,161 |
Total lease liabilities |  | $ | 25,847 |  |  | $ | 28,582 |
(a) Operating lease assets are recorded net of accumulated amortization of $11.9 million and $8.5 million at December 31, 2020 and December 31, 2019, respectively. (b) Finance lease assets are recorded net of accumulated amortization of $5.3 million and $4.7 million at December 31, 2020 and December 31, 2019, respectively. The following table summarizes the lease costs included in our consolidated statements of operations for the years ended December 31, 2020 and December 31, 2019:
(in thousands) | Classification on the Consolidated Statement of Operations |  | December 31, 2020 |  | December 31, 2019
Operating lease cost | Cost of revenue(a) |  | $ | 3,527 |  |  | $ | 3,497 |
Operating lease cost | Selling, general and administrative(a) |  | 1,483 |  |  | 1,351 |
Finance lease cost |  |  |  |  |
Amortization | Cost of revenue(b) |  | 2,711 |  |  | 2,517 |
Interest | Interest income (expense), net(b) |  | 363 |  |  | 333 |
Total lease cost |  |  | $ | 8,084 |  |  | $ | 7,698 |
(a) Operating lease costs recorded in cost of sales includes $0.7 million of variable lease costs for the years ended December 31, 2020 and December 31, 2019, respectively. In addition, $0.3 million and $0.2 million of variable lease costs are included in selling, general and administrative expenses for the years ended December 31, 2020 and December 31, 2019, respectively. These variable costs consist of our proportionate share of operating expenses, real estate taxes, and utilities. (b) Finance lease costs recorded in cost of revenue includes $2.4 million and $2.9 million of variable leases costs for the years ended December 31, 2020 and December 31, 2019, respectively. These variable lease costs consist of fuel, maintenance, and sales tax charges. No variable lease costs for finance leases were recorded in selling, general and administrative expenses for the years ended December 31, 2020 or December 31, 2019. Future minimum commitments for finance and operating leases that have non-cancelable lease terms in excess of one year as of the year ended December 31, 2020 were as follows (in thousands):
Year ending December 31: | Finance Leases |  | Operating Leases
2021 | $ | 2,826 |  |  | $ | 4,908 |
2022 | 2,316 |  |  | 4,606 |
2023 | 1,320 |  |  | 3,516 |
2024 | 509 |  |  | 2,917 |
2025 | 4 |  |  | 2,409 |
Thereafter | — |  |  | 4,043 |
Total minimum lease payments | $ | 6,975 |  |  | $ | 22,399 |
Amounts representing interest | (516) |  |  |
Present value of net minimum lease payments | $ | 6,459 |  |  |
The following is a summary of the lease terms and discount rates as of:
| December 31, 2020 |  | December 31, 2019
Weighted average lease term (in years) |  |  |
Operating | 5.48 |  | 6.20
Finance | 2.78 |  | 2.96
Weighted average discount rate |  |  |
Operating | 4.83 | % |  | 4.80 | %
Finance | 5.50 | % |  | 5.69 | %
The following is a summary of other information and supplemental cash flow information related to finance and operating leases for the years ended:
(in thousands) | December 31, 2020 |  | December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 5,164 |  |  | $ | 4,722 |
Operating cash flows from finance leases | 363 |  |  | 333 |
Financing cash flows from finance leases | 2,664 |  |  | 2,469 |
Right-of-use assets exchanged for lease liabilities |  |  |
Operating leases | $ | 1,096 |  |  | $ | 3,355 |
Finance leases | 2,624 |  |  | 3,578 |
Right-of-use assets disposed or adjusted modifying operating leases liabilities | $ | 621 |  |  | $ | 1,651 |
Right-of-use assets disposed or adjusted modifying finance leases liabilities | $ | (86) |  |  | $ | (78) |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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