The Company has various operating leases primarily for office space and other distribution centers, some of which include escalating lease payments and options to extend or terminate the lease. The Company’s leases have remaining terms of less than 1 year to 14 years. The Company determines if a contract is a lease at the inception of the arrangement.

Operating lease right-of-use assets and liabilities are recognized at commencement date of lease agreements greater than one year based on the present value of lease payments over the lease term. In determining the present value of lease payments, the implicit rate was not readily determinable in the Company’s lease agreements. Therefore, the Company used an estimated secured incremental borrowing rate, based on the Company’s credit rating, adjusted for the weighted average term of each lease. Lease expense is recognized on a straight-line basis over the lease term and variable lease costs are expensed as incurred. For leases with terms of 12 months or less, no asset or liability is recorded and lease expense is recognized on a straight-line basis over the lease term. The exercise of lease renewal options are at the Company’s sole discretion and options are recognized when it is reasonably certain the Company will exercise the option. The recognized right-of-use assets and lease liabilities as calculated do not assume renewal options. The Company does not have lease agreements with residual value guarantees, sale leaseback terms or material restrictive covenants. Additionally, the Company does not separately identify lease and nonlease components, such as maintenance costs.

The Company has a sublease with Denton Publishing Company for a remaining term of approximately three years. Additionally, the Company has various subleases with distributors, for distribution center space, with varying remaining lease terms of less than one year to two years and are cancellable with notice by either party. Sublease income is included in printing, distribution and other revenue in the Consolidated Statements of Operations. As of June 30, 2020, sublease income is expected to approximate $320 for the remainder of 2020, $440 in 2021, $240 in 2022, and $130 in 2023.

As of June 30, 2020, the Company had one additional operating lease that will commence on August 1, 2020, with a lease term of three years, resulting in an additional right-of-use asset and liability of approximately $250 that will be recorded in the third quarter of 2020.

The table below sets forth supplemental Consolidated Balance Sheet information for the Company’s leases.



	Classification		June 30, 2020		December 31, 2019
Assets
Operating	Operating lease right-of-use assets	$	21,871	$	21,371

Liabilities
Operating
Current	Other accrued expense	$	2,156	$	1,579
Noncurrent	Long-term operating lease liabilities		23,051		23,120
Total lease liabilities		$	25,207	$	24,699

Lease Term and Discount Rate
Operating leases
Weighted average remaining lease term (years)			10.9		11.7
Weighted average discount rate (%)			7.3		7.5

The table below sets forth components of lease cost and supplemental cash flow information for the Company’s leases.



	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Lease Cost
Operating lease cost	$	1,073	$	1,062	$	2,119	$	2,100
Short-term lease cost		9		45		13		91
Variable lease cost		148		155		286		245
Sublease income		(178)		(182)		(373)		(343)
Total lease cost	$	1,052	$	1,080	$	2,045	$	2,093

Supplemental Cash Flow Information
Cash paid for operating leases included in operating activities					$	2,052	$	2,023
Right-of-use assets obtained in exchange for operating lease liabilities						1,540		23,381

The table below sets forth the remaining maturities of the Company’s lease liabilities as of June 30, 2020.



Years Ending December 31,	Operating Leases
2020	$	1,771
2021		4,245
2022		4,142
2023		3,272
2024		2,467
Thereafter		22,121
Total lease payments		38,018
Less: imputed interest		12,811
Total lease liabilities	$	25,207