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Leases

3 Months Ended

Mar. 31, 2020

(3) Leases

We have various lease agreements for our facilities, equipment and vehicles with remaining lease terms ranging from one to seventeen years. We determine if an arrangement contains a lease at inception. Some leases include the options to purchase, terminate or extend for one or more years; these options are included in the ROU asset and liability lease term when it is reasonably certain an option will be exercised. Our leases do not contain any material residual value guarantees or material restrictive covenants.

Most of our leases do not provide an implicit rate, therefore we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of the future lease payments.

Certain of our leases include variable costs. Variable costs include non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the ROU asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the ROU asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.

Components of lease cost (income) were as follows:


(in thousands)	Quarter ended March 31, 2020		Quarter Ended March 31, 2019
Operating lease cost	$	2,895	$	3,789
Finance lease cost - amortization expense	204		206
Finance lease cost - interest expense	161		115
Short-term lease cost	27		24
Variable lease cost	914		—
Sublease income	(152)		—
Total	$	4,049	$	4,134

Balance sheet classifications at March 31, 2020 and December 31, 2019 are summarized below:


	2020										2019
(in thousands)	Right of use assets		Current right of use liabilities		Long-term right of use liabilities		Right of use assets		Current right of use liabilities		Long-term right of use liabilities
Operating Leases	$	27,085	$	8,544	$	23,768	$	28,571	$	9,231	$	24,835
Finance Leases	7,906		872		10,112		8,319		338		10,567
Total	$	34,991	$	9,416	$	33,880	$	36,890	$	9,569	$	35,402

Our future minimum lease payments as of March 31, 2020 under operating lease and finance leases, with initial or remaining lease terms in excess of one year, were as follows:


	March 31, 2020
(in thousands)	Operating Leases		Finance Leases
Years ending March 31:
2021	$	8,086	$	1,153
2022	7,988		1,443
2023	6,699		1,446
2024	5,343		1,440
2025	3,781		1,392
Thereafter	6,633		8,017
Total lease payments	38,530		14,891
Less: imputed interest	(6,218)		(3,907)
Present value of lease liabilities	$	32,312	$	10,984

Supplemental cash flow information related to our operating leases for the periods ending March 31, 2020 and March 31, 2019 were as follows:


(in thousands)	March 31, 2020		March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	3,157	$	3,857
Operating cash outflow from finance leases	$	139	$	115
Financing cash (inflow) outflow from finance leases	$	(296)	$	167

Weighted-average remaining lease terms and discount rate for our operating leases for the period ending March 31, 2020, were as follows:

March 31, 2020

Operating

Financing

Weighted-average remaining lease term

5.1 years

10.2 years

Weighted-average discount rate

6.49

6.01

Leases