In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard requires lessees to recognize lease assets and lease liabilities on the balance sheet and requires expanded disclosures about leasing arrangements. We adopted this standard on January 1, 2019 on a modified retrospective basis and will not restate comparative amounts.

We determine whether an arrangement is a lease at inception. We have operating and finance leases for corporate offices, warehouse space and equipment (including vehicles). As of September 30, 2019, we are the lessee in all agreements. Our leases have remaining lease terms of 1 to 8 years, some of which include options to extend the leases based on agreed upon terms, and some of which include options to terminate the leases within 1 year.

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

We have lease agreements that contain both lease and non-lease components (e.g., common-area maintenance). For these agreements, we account for lease components separate from non-lease components.

	Three months ended		Nine months ended
	September 30, 2019		September 30, 2019
Operating Lease Cost	$	232	$	695
Finance Lease Cost
Amortization of right-of use assets		112		264
Interest on lease liabilities		10		23
Total Finance Lease Cost	$	122	$	287

Lease cost for the three and nine months ended September 30, 2018 was $368 and $1,097.

	Three months ended		Nine months ended
	September 30, 2019		September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	232	$	690
Operating cash flows from financing leases		10		23
Financing cash flows from financing leases		129		253
Non-cash activity
Right-of-use assets obtained in exchange for operating lease obligations		-		240
Right-of-use assets obtained in exchange for finance lease obligations		-		1,249

	September 30, 2019
Operating Leases
Right-of-use assets	$	3,574

Current lease liabilities		761
Non-current lease liabilities		3,053
Total operating lease liabilities	$	3,814


Finance Leases
Right-of-use assets	$	1,276

Current lease liabilities		439
Non-current lease liabilities		829
Total finance lease liabilities	$	1,268

Weighted Average Remaining Lease Term
Weighted-average remaining lease term—operating leases	4.89
Weighted-average remaining lease term—finance leases	3.25

Weighted Average Discount Rate
Weighted-average discount rate—operating leases	4.23	%
Weighted-average discount rate—finance leases	2.82	%

As of September 30, 2019, minimum lease payments by period are expected to be as follows:


	Finance			Operating
2019 (excluding the nine months ended September 30, 2019)	$	120		$	231
2020		454			951
2021		325			923
2022		324			898
2023		94			542
Thereafter		4			807
Total Minimum Lease Payments		1,321			4,352
Less: imputed interest		(53	)		(538	)
Present Value of Lease Liabilities	$	1,268		$	3,814

As of December 31, 2018, minimum lease payments under non-cancelable operating leases by period were expected to be as follows:

2019	$	903
2020		902
2021		877
2022		850
2023		506
Thereafter		737
	$	4,775