Leases

6 Months Ended

Jun. 30, 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):


	June 30, 2020			December 31, 2019
Operating lease liabilities:
Current lease liabilities included in Other accrued expenses	$	915		$	883
Long-term operating lease liabilities	23,556			24,037
Total operating lease liabilities	24,471			24,920
Financing lease liabilities:
Current portion of lease liabilities included in Current portion of long-term debt and finance lease obligations	302			296
Long-term portion of lease liabilities included in Long-term debt and finance lease obligations, net of current portion	652			804
Total financing lease liabilities	954			1,100
Total lease liabilities	$	25,425		$	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	3.73		%	3.70		%

As of June 30, 2020, the maturities of our operating lease liabilities were as follows (in thousands):


	Operating Leases
Remainder of 2020	$	1,014
2021	2,027
2022	2,082
2023	1,955
2024	1,933
Thereafter	32,301
Total minimum lease payments	41,312
Less: present value adjustment	(16,841)
Operating lease liabilities	$	24,471

As of June 30, 2020, the maturities of our finance lease liabilities were as follows (in thousands):


	Finance Leases
Remainder of 2020	$	167
2021	266
2022	199
2023	199
2024	199
Thereafter	—
Total minimum lease payments	1,030
Less: present value adjustment	(76)
Finance lease liabilities	$	954

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


	Three Months Ended June 30,						Six Months Ended June 30, 2020
	2020		2019		2020		2019
Operating lease cost⁽¹⁾	$	847	$	864	$	1,783	1,738
Finance lease cost:
Amortization of right-of-use asset	35		42		69		85
Interest on lease liabilities	9		12		19		25
Sublease income	(72)		(69)		(144)		(69)
Total lease cost	$	819	$	849	$	1,727	$	1,779

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

Leases