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 Condensed Consolidated Balance Sheet (in thousands):

	March 31, 2020		December 31, 2019
Right-of-use assets:
Finance leases, net, included in Property and equipment (1)	$	1,097	$	1,203
Operating leases		28,678		7,683
Total right-of-use assets	$	29,775	$	8,886

Lease liabilities:
Finance leases	$	1,538	$	1,641
Operating leases		27,714		7,889
Total lease liabilities	$	29,252	$	9,530

(

)

Finance lease right-of-use assets are presented net of accumulated amortization of

$1.0

million and

$0.9

million as of

March

31,

2020

and

December

31,

2019,

respectively.

Lease cost consists of the following (in thousands):

	Three Months Ended March 31,
	2020		2019
Finance lease cost:
Amortization of right-of-use assets	$	105	$	109
Interest on lease liabilities		22		15
Operating lease cost		805		425
Short-term lease cost		190		262
Variable lease cost		42		40
Total lease cost	$	1,164	$	851

The future maturities of lease liabilities as of

March

31,

2020

are as follows (in thousands):

	Finance Leases			Operating Leases

Remainder of 2020	$	375		$	2,632
2021		382			2,852
2022		361			2,497
2023		157			2,235
2024		471			2,089
Thereafter		-			25,913
Total lease payments		1,746			38,218
Amount representing interest		(208	)		(10,504	)
Present value of lease liabilities		1,538			27,714
Current portion of lease liabilities (1)		(402	)		(2,450	)
Lease liabilities, less current portion (2)	$	1,136		$	25,264

	( 1 )	Current portion of finance lease liabilities are included in Accrued liabilities.

	( 2 )	Finance lease liabilities, less current portion are included in Other long-term liabilities.

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

	March 31, 2020			December 31, 2019
Weighted-average remaining lease term (years)
Finance leases		3.60			3.79
Operating leases		17.99			8.31
Weighted-average discount rate
Finance leases		5.42	%		5.40	%
Operating leases		3.59	%		4.50	%

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

	Three Months Ended March 31,
	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	(22	)	$	(15	)
Operating cash flows from operating leases		(774	)		(415	)
Financing cash flows from finance leases		(103	)		(107	)
Right-of-use assets obtained in exchange for operating lease liabilities		-			506