NOTE 8 — LEASES

The Company leases certain facilities and equipment. On January 1, 2019, the Company adopted ASU 2016-02, Leases (“Topic 842”) and ASU 2018-11 using the cumulative effect method and has elected to apply each available practical expedient. The adoption of Topic 842 resulted in the Company recognizing operating lease liabilities totaling $19,508 with a corresponding right-of-use (“ROU”) asset of $17,613 based on the present value of the minimum rental payments of such leases. The variance between the ROU asset balance and the lease liability is a deferred rent liability that existed prior to the adoption of Topic 842 and was offset against the ROU asset balance during the adoption. The discount rates used for leases accounted for under ASC 842 are based on an interest rate yield curve developed for the leases in the Company’s lease portfolio.

The Company has elected to apply the short-term lease exception to all leases of one year or less. During the three months ended March 31, 2020, the Company had an additional operating lease that resulted in right-of-use assets obtained in exchange for lease obligations of $4,380.

Some of the Company’s facility leases include options to renew. The exercise of the renewal options is typically at the Company’s discretion. The Company regularly evaluates the renewal options and includes them in the lease term when the Company is reasonably certain to exercise them.

Quantitative information regarding the Company’s leases is as follows:


	For the Three Months Ended
	March 31, 2020	March 31, 2019
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$ 129	$ 136
Interest on finance lease liabilities	26	29
Total finance lease costs	155	165
Operating lease cost components:
Operating lease cost	765	786
Short-term lease cost	132	146
Variable lease cost (1)	195	178
Sublease income	(45)	(44)
Total operating lease costs	1,047	1,066

Total lease cost	$ 1,202	$ 1,231

Supplemental cash flow information related to our operating leases is
as follows for the three months ended March 31, 2020 and 2019:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases
Operating cash outflow from operating leases	$ 888	$ 875

Weighted-average remaining lease term-finance leases at end of period (in years)	1.2	1.6
Weighted-average remaining lease term-operating leases at end of period (in years)	10.5	10.9
Weighted-average discount rate-finance leases at end of period	9.2%	8.4%
Weighted-average discount rate-operating leases at end of period	8.8%	9.0%

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Variable lease costs consist primarily of taxes, insurance, utilities, and common area or other maintenance costs for the Company’s leased facilities and equipment.

As of March 31, 2020, future minimum lease payments under finance leases and operating leases were as follows:


	Finance		Operating
	Leases		Leases		Total
2020	$	409	$	2,628	$	3,037
2021		527		3,387		3,914
2022		202		2,902		3,104
2023		34		2,884		2,918
2024		—		2,906		2,906
2025 and thereafter		—		20,119		20,119
Total lease payments		1,172		34,826		35,998
Less—portion representing interest		(116)		(12,923)		(13,039)
Present value of lease obligations		1,056		21,903		22,959
Less—current portion of lease obligations		(462)		(1,579)		(2,041)
Long-term portion of lease obligations	$	594	$	20,324	$	20,918