LEASES:

The Company has entered into various equipment and property leases with terms of

ten

years or less. Certain lease agreements include renewals and/or purchase options set to expire at various dates, and certain lease agreements include rental payments adjusted periodically for inflation. The Company’s lease agreements do

not

contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is a lease at inception. Leases with an initial term of

twelve

months or less are

not

recorded on the balance sheet; costs for these leases are recognized on a straight-line basis over the lease term. Right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of the Company's leases do

not

provide an implicit rate of return, the Company uses its asset-based lending rate in determining the present value of lease payments. Some of the Company’s lease agreements contain non-lease components, which are accounted for separately.

The following table summarizes the Company's leases recorded on the Consolidated Balance Sheet (in thousands):

	December 31,
	2019
Right-of-use assets:
Finance leases, included in Property and equipment	$	2,081
Operating leases, included in Other assets		7,683
Total right-of-use assets	$	9,764

Lease liabilities:
Finance leases	$	1,641
Operating leases		7,889
Total lease liabilities	$	9,530

Lease cost consists of the following (in thousands):

	Year Ended December 31,
	2019
Finance lease cost:
Amortization of right-of-use assets	$	435
Interest on lease liabilities		57
Operating lease cost		1,934
Short-term lease cost		1,442
Variable lease cost		141
Total lease cost	$	4,009

As we have

not

restated prior-year information for our adoption of Topic

842,

total operating lease rental expense under ASC Topic

840,

“Leases” for the years ended

December

31,

2018

and

2017

was

$2.7

million and

$3.0

million, respectively.

The future maturities of lease liabilities as of

December

31,

2019

are as follows (in thousands):

	Finance Leases			Operating Leases

2020	$	499		$	1,963
2021		382			1,290
2022		361			984
2023		157			802
2024		471			814
Thereafter		-			3,664
Total lease payments		1,870			9,517
Amount representing interest		(229	)		(1,628	)
Present value of lease liabilities		1,641			7,889
Current portion of lease liabilities, included in Accrued liabilities		(420	)		(1,642	)
Lease liabilities, less current portion, included in Other long-term liabilities	$	1,221		$	6,247

The following table summarizes the lease terms and discount rates for the lease liabilities:

	December 31, 2019
Weighted-average remaining lease term (years)
Finance leases		3.79
Operating leases		8.31
Weighted-average discount rate
Finance leases		5.40	%
Operating leases		4.50	%

The following table presents other information related to the operating and finance leases (in thousands):

	Year Ended December 31,
	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	(57	)
Operating cash flows from operating leases		(1,909	)
Financing cash flows from finance leases		(434	)
Right-of-use assets obtained in exchange for finance lease liabilities		819
Right-of-use assets obtained in exchange for operating lease liabilities		1,335