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Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases

19.Leases

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.

Leases recorded on the balance sheet consists of the following:

    

December 31,

December 31,

Leases

2020

2019

Assets

Operating lease right-of-use assets, net (1)

$

18,874

$

17,997

Financing lease right-of-use assets, net (2)

 

12,858

 

7,896

Total assets

$

31,732

$

25,893

Liabilities

 

  

 

  

Current

 

  

 

  

Operating

$

4,989

$

5,043

Financing

 

3,901

 

2,788

Total current

 

8,890

 

7,831

Noncurrent

 

  

 

  

Operating

 

14,537

 

13,596

Financing

 

8,376

 

3,760

Total noncurrent

 

22,913

 

17,356

Total liabilities

$

31,803

$

25,187

(1)Operating lease right-of-use assets are recorded net of accumulated amortization of  $9.0 million and $5.2 million as of December 31, 2020 and 2019, respectively.
(2)Financing lease right-of-use assets are recorded net of accumulated amortization of $6.4 million and $6.2 million as of December 31, 2020 and 2019, respectively.

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

December 31,

 

December 31,

 

2020

 

2019

 

Weighted Average Remaining Lease Term (in years)

  

  

Operating leases

5.25

5.30

Financing leases

4.96

1.18

Weighted Average Discount Rate

  

Operating leases (1)

4.73

%

4.80

%

Financing leases

4.46

%

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:

Year Ended December 31,

    

2020

    

2019

Operating lease costs:

 

  

 

  

Operating lease cost

$

6,430

$

6,930

Short-term lease cost (1)

 

3,871

 

2,001

Financing lease costs:

 

  

 

  

Interest on lease liabilities

 

548

 

362

Amortization of right-of-use assets

 

3,324

 

2,312

Total lease cost

$

14,173

$

11,605

(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:

Year Ended December 31,

2020

2019

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows for operating leases

$

6,262

$

6,887

Operating cash flows for finance leases

$

548

$

362

Financing cash flows for finance leases

$

3,619

$

2,906

Non-cash activity:

 

  

 

  

ROU assets obtained in exchange for new operating lease liabilities

$

7,829

$

25,743

ROU assets obtained in exchange for new financing lease liabilities

$

11,270

$

1,021

Maturities of lease liabilities are summarized as follows:

Operating Leases

    

Finance Leases

Year ending December 31,

2021

$

5,696

$

5,023

2022

 

4,275

 

1,395

2023

 

3,186

 

1,989

2024

 

2,528

 

1,429

2025

 

2,354

 

1,039

Thereafter

 

4,130

 

3,000

Total future minimum lease payments

 

22,169

 

13,875

Less - amount representing interest

 

2,643

 

1,598

Present value of future minimum lease payments

 

19,526

 

12,277

Less - current lease obligations

 

4,989

 

3,901

Long-term lease obligations

$

14,537

$

8,376