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Leases | 6. Leases We lease certain land, buildings and equipment for use in our operations. We recognize lease expense for these leases on a straight-line basis over the lease term and combine lease and non-lease components for all leases. Right-of-use (“ROU”) assets and lease liabilities are recorded on the balance sheet for all leases with an expected term of at least one year. Some leases include one or more options to . The exercise of lease renewal options is generally at our discretion. The depreciable lives of ROU assets are limited to the expected lease term. Our lease agreements do not contain any residual value guarantees or material restrictive covenants. As of March 31, 2022, we do not have any non-cancellable operating lease commitments that have not yet commenced.ROU assets are classified within other intangibles, deferred costs and investments, net on the condensed consolidated balance sheet while current lease liabilities are classified within other accrued expenses and long-term lease liabilities are classified within other liabilities. Leases with an initial term of 12 months or less are not recorded on the balance sheet. ROU assets were $5.8 million and $6.1 million at March 31, 2022 and December 31, 2021 respectively. Lease liabilities were $6.1 million and $6.4 million at March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022, we recorded additional ROU assets under operating leases of $119,000. Payments on lease liabilities during the three months ended March 31, 2022 and 2021 totaled $478,000, and $469,000, respectively. Lease expense includes cost for leases with terms in excess of one year. For the three months ended March 31, 2022 and 2021, our total lease expense was $444,000 and $440,000, respectively. Short-term lease costs are de minimus. We have no financing leases and minimum annual rental commitments under non-cancellable operating leases consisted of the following at March 31, 2022 (in thousands):
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