The Company has operating and finance leases for office space, equipment and vehicles.

Management determines if a contract is or contains a lease at inception of the contract or modification of the contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset.

Finance and operating lease ROU assets and liabilities are recognized based on the present value of future minimum lease payments over the expected lease term at commencement date. As the implicit rate is not determinable in most of the Company’s leases, management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The expected lease term includes options to extend or terminate the lease when it is reasonably certain the Company will exercise such option. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term.

The Company’s lease arrangements have lease and non-lease components. Leases with an expected term of 12 months or less are not accounted for on the balance sheet and the related lease expense is recognized on a straight-line basis over the expected lease term.

The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

(1)	Operating lease right-of-use assets are recorded net of accumulated amortization of $7.4 million as of June 30, 2020.

(2)	Financing lease right-of-use assets are recorded net of accumulated amortization of $6.7 million as of June 30, 2020.

Other information related to lease term and discount rate is as follows:


	June 30,		December 31,
	2020		2019
Weighted Average Remaining Lease Term (in years)
Operating leases	4.98		5.30
Financing leases	4.65		1.18
Weighted Average Discount Rate
Operating leases (1)	4.79	%	4.80	%
Financing leases	4.41	%	5.10	%

(1)	Upon adoption of the new lease standard, discount rates used for existing operating leases were established on January 1, 2019.

The components of lease expense are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease costs:
Operating lease cost	$	1,613	$	1,759	$	3,227	$	3,460
Short-term lease cost (1)		920		87		2,081		155
Financing lease costs:
Interest on lease liabilities		169		97		275		200
Amortization of right-of-use assets		885		585		1,585		1,154
Total lease cost	$	3,587	$	2,528	$	7,168	$	4,969

(1)	Includes expenses related to leases with a lease term of more than one month but less than one year.

Supplemental cash flow information related to leases is as follows:


	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	3,179	$	3,417
Operating cash flows for finance leases	$	275	$	200
Financing cash flows for finance leases	$	1,858	$	1,412
Non-cash activity:
ROU assets obtained in exchange for new operating lease liabilities	$	2,688	$	24,437
ROU assets obtained in exchange for new financing lease liabilities	$	9,425	$	205

Maturities of lease liabilities are summarized as follows:


	Operating Leases		Finance Leases
Year ending December 31,
2020 (excluding the six months ended June 30, 2020)	$	3,081	$	2,145
2021		4,980		5,057
2022		3,288		1,181
2023		2,384		1,650
2024		1,818		853
Thereafter		4,215		4,084
Total future minimum lease payments		19,766		14,970
Less - amount representing interest		2,337		1,763
Present value of future minimum lease payments		17,429		13,207
Less - current lease obligations		5,095		4,919
Long-term lease obligations	$	12,334	$	8,288