Note D - Leases

January 1, 2019,

the Company adopted Topic

842

using the modified retrospective approach with optional transition method. The Company recorded operating lease assets (right-of-use assets) of $

22.8

million and operating lease liabilities of

$23.9

million. There was minimal impact to retained earnings upon adoption of Topic

842.

We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of

months or less are generally

not

recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term leases). Our leases have remaining lease terms of

year to

years, some of which

may

include options to extend the leases for up to

years, and some of which

may

include options to terminate the leases within

year.

As of

March 31, 2020

, assets recorded under finance and operating leases were approximately

$1.1

million and

$19.2

million respectively, and accumulated depreciation associated with finance leases was

$0.4

million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is

not

readily determinable, we utilized our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset

may

be required for items such as initial direct costs paid or incentives received.

The following table presents supplemental balance sheet information related to our financing and operating leases:

In thousands	As of March 31, 2020
	Operating Leases		Finance Leases		Total
Right-of-use Assets		19,179		1,071	$	20,250

Liabilities
Short-term lease liabilities		8,197		334		8,531
Long-term lease liabilities		13,375		511		13,886
Total Lease Liabilities	$	21,572	$	845	$	22,417

In thousands	As of December 31, 2019
	Operating Leases		Finance Leases		Total
Right-of-use Assets		17,679		1,138	$	18,817

Liabilities
Short-term lease liabilities		7,226		390		7,616
Long-term lease liabilities		12,514		564		13,078
Total Lease Liabilities	$	21,730	$	896	$	20,694

For the

three

months ended

March 31, 2020

and

2019

, the components of lease expense were as follows:

In thousands	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
Operating lease cost	$	2,365	$	2,215

Finance lease cost:
Amortization of right-of-use assets		67		64
Interest on lease liabilities		14		19
Total Finance lease cost		81		83
Variable lease cost		920		537
Total lease cost	$	3,366	$	2,835

Other information related to leases was as follows:

In thousands	Three Months Ended March 31, 2020			Three Months Ended March 31, 2019
Supplemental Cash Flows Information

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	4,526		$	4,285
Operating cash flows from finance leases		14			22
Financing cash flows from finance leases		110			101

Weighted Average Remaining Lease term

Operating leases		3.1			3.5
Finance leases		3.1			3.3

Weighted Average Discount Rate
Operating leases		4.68	%		4.71	%
Finance leases		6.48	%		7.16	%

The maturities of the Company’s finance and operating lease liabilities as of

March 31, 2020

are as follows:

In thousands	Operating Leases		Finance Leases
Year Ending December 31,
Remainder of 2020	$	6,888	$	306
2021		7,268		238
2022		5,410		189
2023		2,188		152
2024		1,274		36
2025		123		—
Total future minimum lease payments		23,151		921
Less: Imputed interest		1,579		76
Total lease liabilities	$	21,572	$	845

As of

March 31, 2020

, we

have

additional operating leases that have

not

yet commenced.