We lease facilities related to sales and service, manufacturing, reconditioning, certain office spaces, apartments and warehouse, all of which we classify as operating leases. In addition, we also lease certain office equipment and vehicles, which we classify as financing leases. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets; short-term lease expense for the twelve months ended December 31, 2021 was approximately $1.3 million.

Most leases include one or more options to renew, with renewal terms that can extend the lease term on a monthly, annual or longer basis. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option that is reasonably certain of being exercised.

Certain lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.


		December 31, 2021		December 31, 2020
	Classification	(In thousands)		(In thousands)
Assets
Operating	Operating lease right of use assets	$	5,258	$	6,962
Finance	Other assets		164		228
Total lease assets		$	5,422	$	7,190

Liabilities
Current
Operating	Operating lease liabilities	$	1,046	$	1,110
Finance	Other accrued liabilities		127		141

Noncurrent
Operating	Operating lease liabilities, long-term		4,170		5,845
Finance	Other long-term liabilities		52		93
Total lease liabilities		$	5,395	$	7,189

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is based on our rate for the ABL Credit Facility (as defined herein).

Our lease costs are as follows:


		Twelve Months Ended
		December 31, 2021		December 31, 2020		December 31, 2019
		(In thousands)		(In thousands)		(In thousands)
	Classification
Operating lease cost	Selling, general and administrative	$	1,602	$	1,617	$	1,713
Short-term lease costs	Selling, general and administrative		1,296		2,173		2,104
Amortization of leased assets	Selling, general and administrative		114		186		361
Interest on lease liabilities	Net interest expense		59		14		25
Total lease cost		$	3,071	$	3,990	$	4,203

The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $2.9 million, $3.8 million, and $3.8 million in 2021, 2020 and 2019, respectively. The five year and beyond maturity of our lease obligations is presented below:


	Twelve months ended
	December 31, 2021
	Operating		Finance
	Leases		Leases		Total
	(In thousands)
2022	$	1,266	$	135	$	1,401
2023		758		33		791
2024		515		20		535
2025		493		-		493
2026		493		-		493
After 2026		3,362		-		3,362
Total lease payments		6,887		188		7,075
Less: interest		1,671		9		1,680
Present value of lease liabilities	$	5,216	$	179	$	5,395

The lease term and discount rate for our operating and finance leases is as follows:


	December 31, 2021
Weighted average remaining lease term (years)
Operating leases		11.3
Finance leases		1.7

Weighted average discount rate
Operating leases		5.1	%
Finance leases		5.5	%

We had no material non-cash financing or operating leases entered into during the twelve months ended December 31, 2021.

Other information pertaining to our lease obligations is as follows:


	December 31, 2021		December 31, 2020		December 31, 2019
	(In thousands)		(In thousands)		(In thousands)
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,591	$	1,615	$	1,737
Operating cash flows from finance leases		59		16		28
Financing cash flows from finance leases		109		183		183