The Company determines whether an arrangement is or contains a lease at the inception of the arrangement. Operating leases are included in other noncurrent assets, accrued expenses and other noncurrent liabilities in our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, net, short-term debt and long-term debt (less current portion) in our condensed consolidated balance sheets.

Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Finance and operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Since we generally do not have access to the interest rate implicit in the lease, the Company uses our incremental borrowing rate (for fully collateralized debt) at the inception of the lease in determining the present value of the lease payments. The implicit rate is, however, used where readily available. Lease expense under operating leases is recognized on a straight-line basis over the term of the lease. Certain of our leases contain both lease and nonlease components, which are accounted for separately.

The Company has operating and finance leases for office facilities, a data center and certain equipment. The remaining terms of our leases range from over one year to five years. Certain leases include options to extend the lease term for up to ten years, as well as options to terminate, both of which have been excluded from the term of the lease since exercise of these options is not reasonably certain.

Lease expense and cash flow for the three and nine months ended September 30, 2023 and September 30, 2022 and operating and finance lease assets and liabilities, average lease term and average discount rate as of September 30, 2023 and December 31, 2022 are as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023			September 30, 2022
(Dollars in thousands)
Lease Expense
Finance lease expense:
Amortization of right-of-use assets	$	153	$	258	$	649		$	831
Interest on lease liabilities		7		15		38			44
Operating lease expense		658		634		2,019			1,979
Total lease expense	$	818	$	907	$	2,706		$	2,854

Cash Flow Components
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from finance leases	$	7	$	15	$	38		$	44
Operating cash outflows from operating leases		656		641		2,059			2,110
Financing cash outflows from finance leases		29		258		580			805
Right-of-use assets obtained in exchange for finance lease liabilities, net of terminations and disposals		93		519		631			854
Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations and disposals		1,725		45		2,376			277

					September 30, 2023			December 31, 2022
(Dollars in thousands, except lease term and discount rate)
Balance Sheet Information
Operating leases:
Other noncurrent assets					$	8,918		$	8,325
Accrued liabilities					$	(2,629	)	$	(2,137	)
Other noncurrent liabilities						(6,296	)		(6,516	)
Total operating lease liabilities					$	(8,925	)	$	(8,653	)

Finance leases:
Property, plant and equipment gross					$	2,534		$	7,899
Accumulated depreciation						(1,012	)		(5,684	)
Property, plant and equipment, net					$	1,522		$	2,215
Current portion of long-term debt					$	(543	)	$	(1,053	)
Long-term debt (less current portion)						(663	)		(1,673	)
Total finance lease liabilities					$	(1,206	)	$	(2,726	)

Lease Term and Discount Rates
Weighted-average remaining lease term - finance leases (years)						2.2			3.2
Weighted-average remaining lease term - operating leases (years)						3.5			4.2
Weighted-average discount rate - finance leases						2.4	%		2.7	%
Weighted-average discount rate - operating leases						4.5	%		3.6	%

Future minimum payments under our leases as of September 30, 2023 are as follows:


	Amount
(Dollars in thousands)
Lease Maturities	Finance Leases			Operating Leases
Three remaining months of 2023	$	543		$	898
2024		373			2,762
2025		239			2,537
2026		57			2,396
2027		16			1,000
Thereafter		8			-
Total		1,236			9,593
Less: Imputed interest		(30	)		(668	)
Total lease liabilities, net of interest	$	1,206		$	8,925