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 $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