Note D - Leases

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

one

year to

six

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

five

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

one

year.

We sublease our Fullerton (CA), Jacksonville (FL) and Manila facilities. Our current subleases have lease terms ranging from

five

months, which will each expire at various dates by fiscal year

2023.

As of

March 31, 2021

, assets recorded under finance and operating leases were approximately

$0.9

million and

$23.3

million respectively, and accumulated depreciation associated with finance leases was

$0.6

million. As of

December

31,

2020,

assets recorded under finance and operating leases were approximately

$1.0

million and

$23.8

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, 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

March

31,

2021,

we impaired a lease for a facility we were vacating. The resulting impairment charge is included in our restructuring expenses

for the

three

months ended

March 31, 2021

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

In thousands	As of March 31, 2021
	Operating Leases		Finance Leases		Total
Right-of-use Assets	$	23,282	$	908	$	24,190

Liabilities
Short-term lease liabilities		6,904		226		7,130
Long-term lease liabilities		20,233		349		20,582
Total Lease Liabilities	$	27,137	$	575	$	27,712

In thousands	As of December 31, 2020
	Operating Leases		Finance Leases		Total
Right-of-use Assets	$	23,793	$	957	$	24,750

Liabilities
Short-term lease liabilities		6,436		227		6,663
Long-term lease liabilities		20,892		403		21,295
Total Lease Liabilities	$	27,328	$	630	$	27,958

For the

three

months ended

March 31, 2021

and

2020

, the components of lease expense were as follows:

In thousands	Three Months Ended March 31, 2021			Three Months Ended March 31, 2020
Operating lease cost	$	2,119		$	2,365

Finance lease cost:
Amortization of right-of-use assets		49			67
Interest on lease liabilities		7			14
Total Finance lease cost		56			81
Variable lease cost		920			920
Sublease income		(171	)		—
Total lease cost, net	$	2,924		$	3,366

Other information related to leases was as follows:

In thousands	Three Months Ended March 31, 2021			Three Months Ended March 31, 2020
Supplemental Cash Flows Information

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,950		$	4,526
Operating cash flows from finance leases		7			14
Financing cash flows from finance leases		56			110

Weighted Average Remaining Lease term

Operating leases		5.8			3.1
Finance leases		2.8			3.1

Weighted Average Discount Rate
Operating leases		3.58	%		4.68	%
Finance leases		5.30	%		6.48	%

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

March 31, 2021

are as follows:

In thousands	Operating Leases (1)		Finance Leases
Year Ending December 31,
Remainder of 2021	$	5,869	$	189
2022		6,734		209
2023		4,760		167
2024		3,312		48
2025		1,574		6
2026		7,505		—
Total future minimum lease payments		29,754		619
Less: Imputed interest		2,617		44
Total lease liabilities	$	27,137	$	575

(

) Non-cancelable sublease proceeds for the remainder of the fiscal year ending

December 31, 2021

and the fiscal years ending

December 31, 2022

and

2023

$647k,

$540k,

and

$154k,

respectively, are

not

included in the table above.