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 months ended March 31, 2024 and March 31, 2023 and operating and finance lease assets and liabilities, average lease term and average discount rate as of March 31, 2024 and December 31, 2023 are as follows:


	Three Months Ended
	March 31, 2024			March 31, 2023
(Dollars in thousands)
Lease Expense
Finance lease expense:
Amortization of right-of-use assets	$	135		$	245
Interest on lease liabilities		6			16
Operating lease expense		827			623
Total lease expense	$	968		$	884

Cash Flow Components
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from finance leases	$	6		$	16
Operating cash outflows from operating leases		853			636
Financing cash outflows from finance leases		150			288
Right-of-use assets obtained in exchange for finance lease liabilities, net of terminations and disposals		7			396
Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations and disposals		15			—

	March 31, 2024			December 31, 2023
(Dollars in thousands, except lease term and discount rate)
Balance Sheet Information
Operating leases:
Other noncurrent assets	$	9,176		$	10,003
Accrued liabilities	$	(2,920	)	$	(2,987	)
Other noncurrent liabilities		(6,221	)		(7,000	)
Total operating lease liabilities	$	(9,141	)	$	(9,987	)

Finance leases:
Property, plant and equipment gross	$	2,308		$	2,301
Accumulated depreciation		(1,017	)		(882	)
Property, plant and equipment, net	$	1,291		$	1,419
Current portion of long-term debt	$	(504	)	$	(538	)
Long-term debt (less current portion)		(433	)		(586	)
Total finance lease liabilities	$	(937	)	$	(1,124	)

Lease Term and Discount Rates
Weighted-average remaining lease term - finance leases (years)		1.9			2.0
Weighted-average remaining lease term - operating leases (years)		3.1			3.3
Weighted-average discount rate - finance leases		2.4	%		2.4	%
Weighted-average discount rate - operating leases		5.0	%		5.0	%

Future minimum payments under our leases as of March 31, 2024 are as follows:


	Amount
(Dollars in thousands)
Lease Maturities	Finance Leases			Operating Leases
Nine remaining months of 2024	$	504		$	2,575
2025		357			3,048
2026		74			2,902
2027		16			1,299
2028		8			-
Total		959			9,824
Less: Imputed interest		(22	)		(683	)
Total lease liabilities, net of interest	$	937		$	9,141