7. Leases

The Company leases certain vehicles, seismic recording equipment, real property and office equipment under lease agreements. The Company evaluates each lease to determine its appropriate classification as an operating lease or finance lease for financial reporting purposes. The Company is the lessee in a lease contract when we obtain the right to control the asset. The majority of our operating leases are non-cancelable operating leases for office, shop and warehouse space in Midland, Plano, Denison, Houston, Denver, Oklahoma City and Calgary, Alberta.

On January 1, 2019, the Company adopted Topic 842 using the optional cumulative-effect transition method of adoption, under which the new standards were applied prospectively rather than restating the prior periods presented. As a result, certain accounts lack a comparable value for the same period of 2018 and 2017, specifically accounts and values associated with operating leases and ROU assets.

The components of lease cost (in thousands) for the years ended December 31, 2019, 2018 and 2017 was as follows:


	Year Ended December 31,
	2019		2018		2017
Finance lease cost
Amortization of right-of-use assets	$	1,424	$	1,429	$	506
Interest on lease liabilities		177		303		123
Total finance lease cost		1,601		1,732		629

Operating lease cost		1,586		1,607		1,716

Short-term lease cost		—		—		—
Total lease cost	$	3,187	$	3,339	$	2,345

Supplemental cash flow information related to leases (in thousands) for the years ended December 31, 2019, 2018 and 2017 was as follows:


	Year Ended December 31,
	2019		2018		2017
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(1,505)	$	(1,594)	$	(1,534)
Operating cash flows from finance leases	$	(184)	$	(308)	$	(108)
Financing cash flows from finance leases	$	(2,855)	$	(2,699)	$	(1,076)
Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	8,252	$	—	$	—
Finance leases	$	121	$	—	$	—

Supplemental balance sheet information related to leases (in thousands) as of December 31, 2019 and 2018 was as follows:


	December 31,
	2019		2018
Operating leases
Operating lease right-of-use assets	$	6,605	$	—

Operating lease liabilities - current	$	1,200	$	—
Operating lease liabilities - long-term		5,940		—
Total operating lease liabilities	$	7,140	$	—

Finance leases
Property and equipment, at cost	$	8,663	$	8,542
Accumulated depreciation		(3,297)		(1,922)
Property and equipment, net	$	5,366	$	6,620

Finance lease liabilities - current	$	2,316	$	2,830
Finance lease liabilities - long-term		96		2,295
Total finance lease liabilities	$	2,412	$	5,125

Weighted average remaining lease term
Operating leases		6.3 years		7.3 years
Finance leases		0.8 years		1.8 years

Weighted average discount rate
Operating leases		5.04%		—
Finance leases		4.67%		4.65%

Maturities of lease liabilities (in thousands) at December 31, 2019 are as follows:


	Operating Leases		Finance Leases
January 2020 - December 2020	$	1,531	$	2,367
January 2021 - December 2021		1,348		56
January 2022 - December 2022		1,157		37
January 2023 - December 2023		1,168		8
January 2024 - December 2024		1,175		—
Thereafter		2,001		—
Total payments under lease agreements		8,380		2,468

Less imputed interest		(1,240)		(56)

Total lease liabilities	$	7,140	$	2,412