Leases

3 Months Ended

Mar. 31, 2020

We lease office space, restaurant and production facilities, warehouse and storage space, land and equipment under operating leases that expire at various dates through the year ending December 31, 2064. Certain leases contain renewal options for varying periods and escalation clauses for adjusting rent to reflect changes in price indices or scheduled adjustments. We exercise judgment in determining the reasonably certain lease term based on the provisions of the underlying agreement, the economic value of leasehold improvements and other relevant factors. Certain leases require us to pay for insurance, taxes and maintenance applicable to the leased property. Under the terms of the land lease for our New Hampshire Brewery, we hold a first right of refusal to purchase the property should the lessor decide to sell the property.

We lease equipment under finance leases that expire at various dates through the year ending December 31, 2024. Ownership of the leased equipment transfers to us at the end of each lease term.

Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets; we recognize lease expense for these leases on a straight-line basis over the lease term.

Lease-related liabilities consisted of the following (in thousands):


	March 31, 2020			December 31, 2019
Operating lease liabilities:
Current lease liabilities included in Other accrued expenses	$	896		$	883
Long-term lease liabilities	23,806			24,037
Total operating lease liabilities	24,702			24,920
Financing lease liabilities:
Current portion included in Current portion of long-term debt and finance lease obligations	299			296
Long-term portion of lease liabilities included in Long-term debt and finance lease obligations, net of current portion	728			804
Total financing lease liabilities	1,027			1,100
Total lease liabilities	$	25,729		$	26,020
Weighted-average remaining lease term:
Operating leases	24 years			24 years
Finance leases	4 years			4 years
Weighted-average discount rate:
Operating leases	4.72		%	4.72		%
Finance leases	3.72		%	3.70		%

As of March 31, 2020, the maturities of our operating lease liabilities were as follows (in thousands):


	Operating Leases
Remainder of 2020	$	1,508
2021	2,036
2022	2,091
2023	1,958
2024	1,933
Thereafter	32,302
Total minimum lease payments	41,828
Less: present value adjustment	(17,126)
Operating lease liabilities	$	24,702

As of March 31, 2020, the maturities of our finance lease liabilities were as follows (in thousands):


	Finance Leases
Remainder of 2020	$	250
2021	266
2022	199
2023	199
2024	199
Thereafter	—
Total minimum lease payments	1,113
Less: present value adjustment	(86)
Finance lease liabilities	$	1,027

Components of lease cost were as follows (in thousands):


	Three Months Ended March 31,
	2020		2019
Operating lease cost⁽¹⁾	$	936	$	874
Finance lease cost:
Amortization of right-of-use asset	34		42
Interest on lease liabilities	10		13
Sublease income	(72)		—
Total lease cost	$	908	$	929

(1) Includes short-term, month-to-month lease and variable lease costs, which were immaterial.

Leases