Note D - Leases

January 1, 2019,

the Company adopted Topic

842

using the modified retrospective approach with optional transition method. The Company recorded operating lease assets (right-of-use assets) of $

22.8

million and operating lease liabilities of

$23.9

million. There was minimal impact to retained earnings upon adoption of Topic

842.

We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of

months or less are generally

not

recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term leases). Our leases have remaining lease terms of

year to

years, some of which include options to extend the leases for up to

years, and some of which include options to terminate the leases within

year.

As of

June 30, 2020

, assets recorded under finance and operating leases were approximately

$1.0

million and

$15.1

million respectively, and accumulated depreciation associated with finance leases was

$0.5

million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is

not

readily determinable, we utilized our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset

may

be required for items such as initial direct costs paid or incentives received.

During the

three

months ended

June 30

2020,

we modified the terms of some of our existing leases which resulted in the re-measurement of the related ROU assets and lease liabilities. We also exercised early termination options and impaired a lease for a facility we are vacating. The resulting impairment and early termination charges are included in our restructuring expenses

in the

three

months ended

June 30, 2020.

The following table presents supplemental balance sheet information related to our financing and operating leases:

In thousands	As of June 30, 2020
	Operating Leases		Finance Leases		Total
Right-of-use Assets	$	15,078	$	1,034	$	16,112

Liabilities
Short-term lease liabilities		6,967		315		7,282
Long-term lease liabilities		11,736		481		12,217
Total Lease Liabilities	$	18,703	$	796	$	19,499

In thousands	As of December 31, 2019
	Operating Leases		Finance Leases		Total
Right-of-use Assets	$	17,679	$	1,138	$	18,817

Liabilities
Short-term lease liabilities		7,226		390		7,616
Long-term lease liabilities		12,514		564		13,078
Total Lease Liabilities	$	19,740	$	954	$	20,694

For the

three

and

six

months ended

June 30, 2020

and

2019

, the components of lease expense were as follows:

In thousands	Three Months Ended June 30, 2020		Three Months Ended June 30, 2019
Operating lease cost	$	2,119	$	2,378

Finance lease cost:
Amortization of right-of-use assets		65		86
Interest on lease liabilities		13		19
Total Finance lease cost		78		105
Variable lease cost		722		840
Total lease cost	$	2,919	$	3,323

In thousands	Six Months Ended June 30, 2020		Six Months Ended June 30, 2019
Operating lease cost	$	4,484	$	4,593

Finance lease cost:
Amortization of right-of-use assets		132		150
Interest on lease liabilities		27		38
Total Finance lease cost		159		188
Variable lease cost		1,642		1,377
Total lease cost	$	6,285	$	6,158

Other information related to leases was as follows:

In thousands	Six Months Ended June 30, 2020			Six Months Ended June 30, 2019
Supplemental Cash Flows Information

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,661		$	8,631
Operating cash flows from finance leases		23			38
Financing cash flows from finance leases		191			227

Weighted Average Remaining Lease term

Operating leases		3.2			3.5
Finance leases		3.0			3.0

Weighted Average Discount Rate
Operating leases		4.66	%		4.74	%
Finance leases		6.34	%		6.91	%

The maturities of the Company's finance and operating lease liabilities as of

June 30, 2020

are as follows:

In thousands	Operating Leases		Finance Leases
Year Ending December 31,
Remainder of 2020	$	7,633	$	346
2021		5,303		227
2022		3,771		190
2023		2,865		88
2024		562		12
2025		—		—
Total future minimum lease payments		20,134		863
Less: Imputed interest		1,431		67
Total lease liabilities	$	18,703	$	796

As of

June 30, 2020

, we

have

one

operating lease that has

not

yet commenced.