7. LEASES

The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to five years, some of which include options to extend the lease for five years. Operating leases are included in operating lease right-of-use ("ROU") assets, and operating lease liabilities in the Consolidated Balance Sheets. 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.

The Company used the applicable incremental borrowing rate at implementation date to measure lease liabilities and ROU assets. The incremental borrowing rate used by the Company was based on baseline rates and adjusted by the credit spreads commensurate with the Company’s secured borrowing rate. At each reporting period when there is a new lease initiated, the Company will utilize its incremental borrowing rate to perform lease classification tests on lease components and to measure ROU assets and lease liabilities.

The components of lease expense were as follows:



	Three Months Ended
	March 31,
	2020		2019
Operating lease cost	$	357,000	$	429,000
Total net lease cost	$	357,000	$	429,000

Other supplemental balance sheet information related to leases was as follows:



	Three Months Ended
	March 31,			December 31,
	2020			2019
Operating Leases:
Operating lease right of use assets	4,159,000			4,484,000
Total operating lease right of use assets	$	4,159,000		$	4,484,000


Current operating lease liabilities^(A)	$	987,000		$	1,304,000
Noncurrent operating lease liabilities	3,109,000			3,119,000
Total operating lease liabilities	$	4,096,000		$	4,423,000

Weighted average remaining lease term (in years):
Operating leases	4.0			4.0

Weighted average discount rate:
Operating leases	4.9		%	4.9		%

^(A)Current operating lease liabilities are included in accrued other liabilities on the Consolidated Balance Sheets.

Other information related to leases were as follows:



	Three Months Ended
	March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases^(B)	$	357,000	$	429,000

^(B)Cash flow from operating lease included in "Prepaid and other assets" on the Consolidated Statements of Cash Flows.

As of March 31, 2020, maturities of lease liabilities were as follows:



	Operating Leases
2020 (remainder of year)	$	1,075,000
2021	1,174,000
2022	1,102,000
2023	1,000,000
2024	530,000
Total lease payments	4,881,000
Less: imputed interest	(785,000		)
Total lease obligations	4,096,000
Less: current obligations	(987,000		)
Long-term lease obligations	$	3,109,000

As of December 31, 2019, maturities of lease liabilities were as follows:



	Operating Leases
2020	$	1,433,000
2021	1,174,000
2022	1,102,000
2023	1,000,000
2024	530,000
Total lease payments	5,239,000
Less: imputed interest	(816,000		)
Total lease obligations	4,423,000
Less: current obligations	(1,304,000		)
Long-term lease obligations	$	3,119,000