The Company’s leases pertain primarily to engineering, manufacturing, sales and administrative facilities, with an initial term of one year or more. The Company has three leased facilities in Minnesota, two that expire in 2022 and one that expires in 2023, one leased facility in Illinois that expires in 2022, one leased facility in California that expires in 2022, one leased facility in Singapore that expires in 2025, one leased facility in Indonesia that expires in 2024, and one leased facility in Germany that expires in 2022.

Certain foreign leases allow for variable lease payments that depend on an index or a market rate adjustment for the respective country and are adjusted on an annual basis. The adjustment is recognized as incurred in the consolidated condensed statement of operations. The facility leases include options to extend for terms ranging from one year to five years. Lease options that the Company is reasonably certain to execute are included in the determination of the ROU asset and lease liability. Our Indonesia lease includes embedded forward starting leases that will begin in 2022 and 2024 for additional square footage, which will result in the recognition of an additional ROU asset and lease liability in those periods of approximately $103 and $72, respectively. The Company also leases equipment that include bargain purchase options at termination. These leases have been classified as finance leases.

Operating cash flows for the year ended March 31, 2021, and 2020 from operating leases were $609 and $507, respectively. Financing lease assets are classified as property, plant and equipment within the consolidated condensed balance sheet.

Discount rates are determined based on 5-year term incremental borrowing rates at inception of the lease. The following table summarizes the weighted-average lease term and discount rates:


Weighted-Average Lease Term (Years)	March 31, 2021	December 31, 2020
Finance leases	0.8	0.8
Operating leases	3.6	3.8

Weighted-Average Discount Rate	March 31, 2021	December 31, 2020
Finance leases	5.56%	5.56%
Operating leases	5.06%	5.06%


		March 31, 2021		March 31, 2020
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	10	$	26
Interest on lease liabilities		1		2

Operating lease cost		582		481
Variable lease cost		120		151
Total lease cost	$	713	$	660


		Operating Leases		Financing Leases		Total
2021	$	2,108	$	12	$	2,120
2022		1,938		3		1,941
2023		1,338		-		1,338
2024		1,017		-		1,017
2025 and thereafter		471		-		471
Total lease payments		6,872		15		6,887
Less: Interest		(598)		(3)		(601)
Present value of lease liabilities	$	6,274	$	12		6,286