The Company leases a variety of assets throughout its organization, such as office space, funeral homes, warehouses and equipment. In addition the Company has a sale-leaseback related to one of its warehouses. Leases with an initial term of 12 months or less are not recorded on the Company’s consolidated balance sheets, and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. For lease agreements with an initial term of more than 12 months, the Company measures the lease liability at the present value of the sum of the remaining minimum rental payments, which exclude executory costs.

Certain leases provide the Company with the option to renew for additional periods, with renewal terms that can extend the lease term for periods ranging from 1 to 30 years. The exercise of lease renewal options is at the Company’s sole discretion, and the Company is only including the renewal option in the lease term when the Company can be reasonably certain that it will exercise the renewal options. The Company does have residual value guarantees on the finance leases for its vehicles, but no residual guarantees on any of its operating leases.

Certain of the Company’s leases have variable payments with annual escalations based on the proportion by which the consumer price index (“CPI”) for all urban consumers increased over the CPI index for the prior comparative year.

The Company has the following balances recorded on its consolidated balance sheets related to leases:

	September 30, 2020		December 31, 2019
Assets:
Operating	$	7,952	$	10,570
Finance		4,605		5,685
Total ROU assets⁽¹⁾	$	12,557	$	16,255
Liabilities:
Current
Operating	$	1,728	$	2,022
Finance		1,425		1,200
Long-term
Operating		8,944		11,495
Finance		3,029		4,302
Total lease liabilities⁽²⁾	$	15,126	$	19,019

⁽¹⁾	The Company’s ROU operating assets and finance assets are presented within Other assets and Property and equipment, net of accumulated depreciation, respectively, in its consolidated balance sheets.

⁽²⁾	The Company’s current lease liabilities and long-term are presented within Accounts payable and accrued liabilities and Other long-term liabilities, respectively, in its consolidated balance sheets.

As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, based on the information available at commencement date, in determining the present value of lease payments. The Company used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date. The weighted average borrowing rates for operating and finance leases were 10.1% and 8.5%, respectively, as of September 30, 2020.

		Nine months ended September 30,
		2020		2019
Lease cost	Classification
Operating lease costs⁽¹⁾	General and administrative expense	$	2,366	$	2,687
Finance lease costs
Amortization of leased assets	Depreciation and Amortization		874		899
Interest on lease liabilities	Interest expense		328		370
Variable lease costs	General and administrative expense		—		—
Short-term lease costs⁽²⁾	General and administrative expense		—		—
Net lease costs		$	3,568	$	3,956

⁽¹⁾

The Company includes its variable lease costs under operating lease costs as these variable lease costs are immaterial.

⁽²⁾

The Company does not have any short-term leases with lease terms greater than one month.

Maturities of the Company’s lease labilities as of September 30, 2020 were as follows:

Year ending December 31,	Operating			Finance
2020	$	725		$	407
2021		2,591			1,839
2022		2,171			2,009
2023		1,882			702
2024		1,737			99
Thereafter		5,735			—
Total	$	14,841		$	5,056
Less: Interest		(4,170	)		(603	)
Present value of lease liabilities	$	10,671		$	4,453

Maturities of the Company’s lease labilities as of December 31, 2019 were as follows:

Year ending December 31,	Operating			Finance
2019	$	3,283		$	1,759
2020		2,783			1,838
2021		2,455			2,026
2022		2,190			708
2023		2,046			106
Thereafter		6,348			—
Total	$	19,105		$	6,437
Less: Interest		(5,588	)		(935	)
Present value of lease liabilities	$	13,517		$	5,502

Operating and finance lease payments include $2.1 million related to options to extend lease terms that are reasonably certain of being exercised and $1.9 million related to residual value guarantees. The weighted average remaining lease term for operating and finance leases was 6.7 years and 2.2 years, respectively, as of September 30, 2020.

As of September 30, 2020, the Company had no additional operating leases that had not yet commenced, and did not have any lease transactions with its related parties. In addition, as of September 30, 2020, the Company had not entered into any new sale-leaseback arrangements.

Refer to Note 19 Subsequent Events for details regarding the termination of the Company’s existing corporate office lease and execution of a new lease subsequent to September 30, 2020.