Effective January 1, 2019, we adopted ASU 2016-02, “Leases (Topic 842),” and elected the package of practical expedients that does not require us to reassess: (1) whether any expired or existing contracts are, or contain, leases, (2) lease classification for any expired or existing leases and (3) initial direct costs for any expired or existing leases. We adopted the practical expedient that allows lessees to treat the lease and non-lease components of a lease as a single lease component. The impact of the adoption of ASC 842, as of January 1, 2019, was approximately $5.5 million to our assets, approximately $1.6 million to our current liability and approximately $3.9 million to our long-term liability.

Under the transition method selected by the Company, leases expiring at, or entered into after, January 1, 2019 were required to be recognized and measured. Prior period amounts have not been adjusted and continue to be reflected in accordance with the Company's historical accounting under ASC 840. The adoption of this standard resulted in the recording of operating lease assets and operating lease liabilities as of January 1, 2019, with no related impact on the Company’s Consolidated Statements of Stockholders’ Equity or Consolidated Statements of Income (Loss). Short-term leases have not been recorded on the Company’s Consolidated Balance Sheets.

We lease facilities related to sales and service, manufacturing, reconditioning, certain office spaces, apartments and warehouse, all of which we classify as operating leases. In addition, we also lease certain office equipment and vehicles, which we classify as financing leases. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets; short-term lease expense for the twelve months ended December 31, 2020 was approximately $2.2 million.

Most leases include one or more options to renew, with renewal terms that can extend the lease term on a monthly, annual or longer basis. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option that is reasonably certain of being exercised.

Certain lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

		December 31, 2020		December 31, 2019
	Classification	(In thousands)		(In thousands)
Assets
Operating	Operating lease right of use assets	$	6,962	$	5,144
Finance	Other assets		228		437
Total lease assets		$	7,190	$	5,581

Liabilities
Current
Operating	Operating lease liabilities	$	1,110	$	1,314
Finance	Other accrued liabilities		141		228

Noncurrent
Operating	Operating lease liabilities, long-term		5,845		3,801
Finance	Other long-term liabilities		93		224
Total lease liabilities		$	7,189	$	5,567

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is based on our rate for the ABL Credit Facility (as defined herein).

		Twelve Months Ended
		December 31, 2020		December 31, 2019
		(In thousands)		(In thousands)
	Classification
Operating lease cost	Selling, general and administrative	$	1,617	$	1,713
Short-term lease costs	Selling, general and administrative		2,173		2,104
Amortization of leased assets	Selling, general and administrative		186		361
Interest on lease liabilities	Net interest expense		14		25
Total lease cost		$	3,990	$	4,203

The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $3.8 million, $3.8 million, and $5.4 million in 2020, 2019 and 2018, respectively. The five year and beyond maturity of our lease obligations is presented below:

	Twelve months ended
	December 31, 2020
	Operating		Finance
	Leases		Leases		Total
	(In thousands)
2021	$	1,376	$	149	$	1,525
2022		1,125		54		1,179
2023		870		26		896
2024		625		20		645
2025		602		-		602
After 2025		4,654		-		4,654
Total lease payments		9,252		249		9,501
Less: interest		2,297		15		2,312
Present value of lease liabilities	$	6,955	$	234	$	7,189

The lease term and discount rate for our operating and finance leases is as follows:

	December 31, 2020
Weighted average remaining lease term (years)
Operating leases		11.7
Finance leases		2.3

Weighted average discount rate
Operating leases		5.1	%
Finance leases		4.5	%

We had no material non-cash financing or operating leases entered into during the twelve months ended December 31, 2020.

	December 31, 2020		December 31, 2019
	(In thousands)		(In thousands)
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,615	$	1,737
Operating cash flows from finance leases		16		28
Financing cash flows from finance leases		183		183