Leases

3 Months Ended

Mar. 31, 2020

NOTE 13. LEASES

We lease certain equipment, office space and land. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease.

The following table presents supplemental balance sheet information related to lease assets and liabilities:

(in thousands)	Classification	March 31, 2020		December 31, 2019
Assets
Operating lease assets	Other long-term assets	$	14,475	$	15,772
Finance lease assets¹	Property, plant and equipment, net		3,673		2,360
Total lease assets		$	18,148	$	18,132

Liabilities
Current
Operating lease liabilities	Accounts payable and accrued liabilities	$	4,885	$	4,998
Finance lease liabilities	Accounts payable and accrued liabilities		972		644
Noncurrent
Operating lease liabilities	Other long-term obligations		9,569		10,775
Finance lease liabilities	Other long-term obligations		2,676		1,703
Total lease liabilities		$	18,102	$	18,120

¹ Finance lease assets are presented net of accumulated amortization of $0.5 million and $0.3 million as of March 31, 2020 and December 31, 2019, respectively.

The following table presents the components of lease expense:

	Three Months Ended March 31,
(in thousands)	2020		2019
Operating lease costs¹	$	1,425	$	1,410
Finance lease costs
Amortization of leased assets	213		21
Interest on lease liabilities	27		5
Net lease costs	$	1,665	$	1,436

¹ Excludes short-term leases and variable lease costs, which are immaterial

The following tables presents supplemental cash flow information related to leases:

	Three Months Ended March 31,
(in thousands)	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,506	$	1,522
Operating cash flows for finance leases	$	27	$	5
Financing cash flows for finance leases	$	215	$	27
Leased assets exchanged for new lease liabilities
Operating leases	$	38	$	268
Finance leases	$	1,517	$	508