Leases are classified as either finance leases or operating leases based on criteria in ASC 842. The Company has finance leases for its vehicle and equipment leases and operating leases for its real estate space and office equipment leases. The Company’s operating and finance leases generally have original lease terms between 1 year and 15 years, and in some instances include one or more options to renew. The Company includes options to extend the lease term if the options are reasonably certain of being exercised. The Company currently considers some of its renewal options to be reasonably certain to be exercised. Some leases also include early termination options, which can be exercised under specific conditions. The Company does not have material residual value guarantees or restrictive covenants associated with its leases.

Finance and operating lease assets represent the right to use an underlying asset for the lease term, and finance and operating lease liabilities represent the obligation to make lease payments arising from the lease.

The Company calculates the present value of its finance and operating leases using an estimated incremental borrowing rate (“IBR”), which requires judgment. For real estate operating leases, the Company estimates the IBR based on prevailing market rates for collateralized debt in a similar economic environment with similar payment terms and maturity dates commensurate with the terms of the lease. For all other leases, the Company estimates the IBR based on the stated interest rate on the contract. Since many of the inputs used to calculate the rate implicit in the leases are not readily determinable from the lessee’s perspective, the Company does not use the implicit interest rate.

Certain leases contain variable payments, these payments are expensed as incurred and not included in the Company’s operating lease right-of-use assets and operating lease liabilities. These amounts primarily include payments for maintenance, utilities, taxes, and insurance and are excluded from the present value of the Company’s lease obligations.

The Company does not record operating lease right-of-use assets or operating lease liabilities for leases with an initial term of 12 months or less. The Company also combines lease and non-lease components on all new or modified operating leases into a single lease component for all classes of assets.

The components of lease expense were as follows:


		For the Three Months Ended March 31,
	Statement of Operations Location	2023		2022
Operating lease cost
Lease cost	Selling, general and administrative expense	$	2,741	$	2,451
Variable lease cost	Selling, general and administrative expense		326		367
Total operating lease cost			3,067		2,818

Finance lease cost
Amortization of right of use assets	Depreciation and amortization		1,154		939
Interest on lease liabilities	Interest expense—net		130		112
Total finance lease cost			1,284		1,051
Total lease cost		$	4,351	$	3,869

Supplemental cash flows information related to leases was as follows:


	For the Three Months Ended March 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases	$	2,557	$	2,302
Operating cash flows used in finance leases		130		112
Financing cash flows used in finance leases		1,029		944

Lease liabilities arising from new ROU assets:
Operating leases		7,999		8,815
Finance leases		2,405		512

Weighted average remaining lease terms and weighted average discount rates were:


	March 31, 2023
	Operating Leases			Finance Leases
Weighted average remaining lease term (years)	4.62				3.43
Weighted average discount rate		3.31	%		5.57	%

	March 31, 2022
	Operating Leases			Finance Leases
Weighted average remaining lease term (years)	4.86				3.03
Weighted average discount rate		2.50	%		4.98	%

The following is a schedule by year of the maturities of lease liabilities with original terms in excess of one year:


	Operating Leases			Finance Leases
Remainder of 2023	$	7,117		$	3,657
2024		8,554			3,543
2025		6,507			2,612
2026		5,006			1,902
2027		3,385			967
2028 and thereafter		4,787			135
Total undiscounted future minimum lease payments		35,356			12,816
Less imputed interest		(2,693	)		(1,179	)
Total discounted future minimum lease payments	$	32,663		$	11,637