Note D - Leases

January 1, 2019,

the Company adopted Topic

842

using the modified retrospective approach with optional transition method. The Company recorded operating lease assets (ROU assets) of

$22.8

million and operating lease liabilities of

$23.9

million. There was minimal impact to retained earnings upon adoption of Topic

842.

We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of

months or less are generally

not

recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term leases). Our leases have remaining lease terms of

one

year to

six

years, some of which

may

include options to extend the leases for up to an additional

five

years, and some of which include options to terminate the leases within

one

year.

We sublease our Fullerton (CA), Jacksonville (FL) and Manila facilities. Our current subleases have lease terms ranging from

five

months, which will each expire at various dates by fiscal year

2023.

As of

December 31, 2020

, assets recorded under finance and operating leases were approximately

$1.0

million and

$23.8

million respectively, and accumulated amortization associated with finance leases was

$0.5

million. As of

December 31, 2019,

assets recorded under finance and operating leases were approximately

$1.1

million and

$17.7

million respectively, and accumulated depreciation associated with finance leases was

$0.4

million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is

not

readily determinable, we utilized our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset

may

be required for items such as initial direct costs paid or incentives received.

During the year ended

December 31, 2020,

we modified the terms of some of our existing leases which resulted in the re-measurement of the related ROU assets and lease liabilities. We also exercised early termination options and impaired a lease for a facility we were vacating. The resulting impairment and early termination charges are included in our restructuring expenses in the year ended

December 31, 2020.

Please refer to Note O -

Restructuring Activities

for more details.

The following tables present supplemental balance sheet information related to our financing and operating leases:

In thousands	As of December 31, 2020
	Operating Leases		Finance Leases		Total
Right-of-use Assets	$	23,793	$	957	$	24,750

Liabilities
Short-term lease liabilities		6,436		227		6,663
Long-term lease liabilities		20,892		403		21,295
Total Lease Liabilities	$	27,328	$	630	$	27,958

In thousands	As of December 31, 2019
	Operating Leases		Finance Leases		Total
Right-of-use Assets	$	17,679	$	1,138	$	18,817

Liabilities
Short-term lease liabilities		7,226		390		7,616
Long-term lease liabilities		12,514		564		13,078
Total Lease Liabilities	$	19,740	$	954	$	20,694

For the year ended

December 31, 2020

and

2019

the components of lease expense were as follows:

In thousands	Year Ended December 31, 2020			Year Ended December 31, 2019
Operating lease cost	$	8,646		$	9,251
Finance lease cost
Amortization of right-of-use assets		240			298
Interest on lease liabilities		45			70
Total Finance lease cost		285			368
Variable lease cost		3,085			2,797
Sublease income		(470	)		—
Total lease cost, net	$	11,546		$	12,416

Other information related to leases was as follows:

In thousands	Year Ended December 31, 2020			Year Ended December 31, 2019
Supplemental Cash Flows Information

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	18,777		$	17,986
Operating cash flows from finance leases		40			66
Financing cash flows from finance leases		412			807

Weighted Average Remaining Lease term

Operating leases		6.05			3.29
Finance leases		2.97			3.15

Weighted Average Discount Rate
Operating leases		3.72	%		4.71	%
Finance leases		6.74	%		7.44	%

The maturities of the Company's finance and operating lease liabilities as of

December 31, 2020

are as follows:

In thousands	Operating Leases (1)		Finance Leases
Year Ending December 31,
2021	$	7,274	$	252
2022		5,870		209
2023		4,616		166
2024		3,314		48
2025		1,574		6
2026		7,505		—
Total future minimum lease payments		30,153		681
Less: Imputed interest		2,825		51
Total lease liabilities	$	27,328	$	630
(1) Non-cancelable sublease proceeds for the fiscal year ending December 31, 2021, 2022, and 2023 of $647k, $540k, and $154k, respectively, are not included in the table above.

As of

December 31, 2020

, we

have

new operating lease that has

not

yet commenced.