We have entered into various non–cancellable operating and finance lease agreements for certain of our offices, shop and warehouse facilities, equipment and vehicles. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our unaudited condensed consolidated financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor.

Our leases have remaining lease terms ranging from one year to eight years and often include options to extend the lease term for up to three years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For the majority of leases entered into during the current period, we have concluded it is not reasonably certain that we would exercise the options to extend the lease. Therefore, as of the lease commencement date, our lease terms generally do not include these options. We include options to extend the lease when it is reasonably certain that we will exercise that option.

Lease expense for operating lease payments is recognized on a straight–line basis over the lease term. Certain operating leases provide for annual increases to lease payments based on an index or rate. We estimate the annual increase in lease payments based on the index or rate at the lease commencement date, for both our historical leases and for new leases commencing after January 1, 2019. Differences between the estimated lease payment and actual payment are expensed as incurred. Lease expense for finance lease payments is recognized as amortization expense of the finance lease ROU asset and interest expense on the finance lease liability over the lease term.

The balances for the operating and finance leases where we are the lessee are presented on our unaudited condensed consolidated balance sheet as follows:

	Classification on Unaudited Condensed Consolidated Balance Sheet	June 30, 2019
Assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	7,902
Finance lease assets	Property and equipment, net		766
Total lease assets		$	8,668

Liabilities:
Current:
Operating lease liabilities	Operating lease liabilities	$	3,193
Finance lease liabilities	Current portion of long-term debt and finance leases		806
Long-term - Operating lease liabilities	Other long-term liabilities		4,807
Total lease liabilities		$	8,806

The components of lease expense on our unaudited condensed consolidated statement of operations are as follows:

	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Operating lease expense:
Operating lease expense ⁽¹⁾	$	1,324	$	2,664

Finance lease expense:
Amortization of leased assets	$	207	$	428
Interest on lease liabilities		31		69
Total finance lease expense	$	238	$	497

Total lease expense	$	1,562	$	3,161

⁽¹⁾	Includes short–term leases and variable lease costs, both of which are immaterial.

As of June 30, 2019, our operating leases and finance leases have weighted average remaining lease terms of 3.9 years and 0.9 years, respectively, and both our operating leases and finance leases have a weighted average discount rate of 13.0%.

Supplemental cash flows information related to leases where we are the lessee is as follows:

	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,243	$	2,583
Operating cash flows from finance leases		31		69
Financing cash flows from finance leases		218		428

Operating right-of-use assets obtained in exchange for new operating lease liabilities	$	165	$	—

As of June 30, 2019, the maturities of the liabilities related to our operating leases and finance leases are as follows:

	Operating Leases		Finance Leases
Six months ended December 31, 2019	$	2,625	$	496
2020		3,480		361
2021		1,209		—
2022		871		—
2023		701		—
Thereafter		479		—
Total minimum lease payments		9,365		857
Less: interest		1,365		51
Present value of lease liabilities		8,000		806
Less: current lease liabilities		3,193		806
Long-term lease liabilities	$	4,807	$	—