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, 2022 was approximately $0.6 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, 2022		December 31, 2021
	Classification	(In thousands)		(In thousands)
Assets
Operating	Operating lease right of use assets	$	4,872	$	5,258
Finance	Other assets		132		164
Total lease assets		$	5,004	$	5,422

Liabilities
Current
Operating	Operating lease liabilities	$	1,054	$	1,046
Finance	Other accrued liabilities		43		127

Noncurrent
Operating	Operating lease liabilities, long-term		3,807		4,170
Finance	Other long-term liabilities		98		52
Total lease liabilities		$	5,002	$	5,395

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate.

Our lease costs are as follows:


		Twelve Months Ended
		December 31, 2022		December 31, 2021		December 31, 2020
		(In thousands)		(In thousands)		(In thousands)
	Classification
Operating lease cost	Selling, general and administrative	$	1,910	$	1,602	$	1,617
Short-term lease costs	Selling, general and administrative		621		1,296		2,173
Amortization of leased assets	Selling, general and administrative		86		114		186
Interest on lease liabilities	Net interest expense		11		59		14
Total lease cost		$	2,628	$	3,071	$	3,990

The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $2.5 million, $2.9 million, and $3.8 million in 2022, 2021 and 2020, respectively. The five year and beyond maturity of our lease obligations is presented below:


	Twelve months ended
	December 31, 2022
	Operating		Finance
	Leases		Leases		Total
	(In thousands)
2023	$	1,241	$	48	$	1,289
2024		721		43		764
2025		510		24		534
2026		478		35		513
2027		478		-		478
After 2027		2,820		-		2,820
Total lease payments		6,248		150		6,398
Less: interest		1,387		9		1,396
Present value of lease liabilities	$	4,861	$	141	$	5,002

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


	December 31, 2022
Weighted average remaining lease term (years)
Operating leases		10.7
Finance leases		3.4

Weighted average discount rate
Operating leases		5.1	%
Finance leases		4.4	%

We had no material non-cash financing or operating leases entered into during the twelve months ended December 31, 2022.

Other information pertaining to our lease obligations is as follows:


	December 31, 2022		December 31, 2021		December 31, 2020
	(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	$	1,949	$	1,591	$	1,615
Operating cash flows from finance leases		11		59		16
Financing cash flows from finance leases		83		109		183