The Company adopted Topic 842 as of January 1, 2019, using the transition method per ASU No. 2018-11, wherein entities are allowed to apply the new leases standard at the adoption date. Accordingly, all periods prior to January 1, 2019 were presented in accordance with the previous ASC Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented. Adoption of ASC 842 resulted in an increase to total assets of $1.5 million and to liabilities of $1.6 million due to the recording of operating lease right-of-use assets ("ROU") and operating lease liabilities. Finance leases were not impacted by the adoption of ASC 842, as finance lease liabilities and the corresponding ROU assets were already recorded in the balance sheet under the previous guidance, ASC 840. The adoption did not materially impact the Company’s consolidated statements of earnings or cash flows.

The Company has operating leases for facilities and finance leases for office equipment. Leases with an initial term of 12 months or less are not recorded in the balance sheet. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. The Company also elected the package of practical expedients permitted within the new standard, which among other things, allows the Company to carry forward historical lease classifications. The Company determines if an arrangement is a lease at inception of a contract.

ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term is deemed to include options to extend or terminate the lease when it is reasonably certain that it will exercise that option. ROU assets also include any advance lease payments made and exclude lease incentives. As most of the Company's operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments on a collateralized basis. Finance lease agreements generally include an interest rate that is used to determine the present value of future lease payments. Operating fixed lease expense and finance lease depreciation expense are recognized on a straight-line basis over the lease term.

The Company's lease cost for the three months ended March 31, 2019 included the following components:

	March 31, 2019
Operating lease costs	$	219
Short-term lease costs		30
Amortization of finance lease assets		26
Interest on finance lease liabilities		2
Total lease cost	$	277

The table below summarizes the Company's scheduled future minimum lease payments under operating and finance leases recorded on the balance sheet as of March 31, 2019:

Year	Operating Leases			Finance Leases
2019	$	703		$	69
2020		379			61
2021		104			48
2022		106			23
2023		107			8
Thereafter		137			0
Total minimum payments required		1,536			209
Less: amount representing interest		98			12
Present value of net minimum lease payments	$	1,438		$	197
Less: Current maturities of lease obligations		(876	)		(80	)
Long-Term lease obligations	$	562		$	117

The weighted average remaining lease terms and discount rates for all of the Company’s operating and finance leases were as follows as of March 31, 2019:

		March 31, 2019
Weighted-average remaining lease term - finance leases		2.9 years
Weighted-average remaining lease term - operating leases		3.1 years
Weighted-average discount rate - finance leases		4%
Weighted-average discount rate - operating leases		5%

The table below presents supplemental cash flow information related to leases during the three months ended March 31, 2019:

	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	236
Operating cash flows for finance leases		2
Financing cash flows for finance leases		26

The following table summarizes the classification of ROU assets and lease liabilities as of March 31, 2019:

Leases	Consolidated Balance Sheet Classification	March 31, 2019
Assets:
Operating right-of-use assets	Other noncurrent assets	$	1,304
Finance right-of-use assets	Other noncurrent assets		189
Total leased assets		$	1,493
Liabilities:
Current
Operating lease liabilities	Accrued liabilities	$	876
Finance lease liabilities	Accrued liabilities		80
Noncurrent
Operating lease liabilities	Long-term liabilities		562
Finance lease liabilities	Long-term liabilities		117
Total lease liabilities		$	1,635

In January 2019, the Company entered into an eleven-year lease for 21,030 square feet of office space in Clarksburg, Maryland for our test and measurement product line. The new office lease will replace the leased office in Germantown, Maryland. The total lease obligations pursuant to the new lease agreement is approximately $5.4 million. Since the lease commencement date is January 2020, the Company has not recorded the lease on the consolidated balance sheet.