11. Leases

The Company’s leases pertain primarily to engineering, manufacturing, sales and administrative facilities, with an initial term of one year or more. The Company has three leased facilities in Minnesota, two that expire in 2022 and one that expires in 2023, one leased facility in Illinois that expires in 2021, one leased facility in Singapore that expires in 2020, one leased facility in Indonesia that expires in 2024, and one leased facility in Germany that expires in 2022.

Certain foreign leases allow for variable lease payments that depend on an index or a market rate adjustment for the respective country and are adjusted on an annual basis. The adjustment is recognized as incurred in profit and loss. The facility leases include options to extend for terms ranging from one to five years. Lease options that the Company is reasonably certain to execute, are included in the determination of the ROU asset and lease liability. Our Indonesia lease includes embedded forward starting leases that will begin in 2022 and 2024 for additional square footage, which will result in the recognition of an additional ROU asset and lease liability in those periods of approximately $103 and $72, respectively. The Company also leases various computer equipment that include bargain purchase options at termination. These leases have been classified as finance leases.

As of September 30, 2019, the Company has a weighted-average lease term of 1.6 years for its finance leases, and 3.3 years for its operating leases. As of September 30, 2019, the Company has a weighted-average discount rate of 5.56% for its finance leases, and 5.25% for its operating leases. Operating cash flows from continuing operations for the nine months ended September 30, 2019 from operating leases were $1,406. Operating cash flows from discontinued operations for the nine months ended September 30, 2019 from operating leases were $84. Non-cash increases for the nine months ended September 30, 2019, to the operating lease ROU assets, lease incentive other assets and lease liabilities from continuing operations were $772, $150, and $922, respectively. During the nine months ended September 30, 2019, we derecognized approximately $761 of non-cash operating lease ROU assets and liabilities from our discontinued operations. Financing lease assets are classified as machinery and equipment within the consolidated balance sheet. Short term leases are not significant.

The following tables summarizes lease costs by type:


	Three Months Ended September 30, 2019	Nine Months Ended September 30, 2019
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$ 27	$ 76
Interest on lease liabilities	3	8

Operating lease cost*	462	1,379
Variable lease cost**	138	417
Total lease cost	$ 630	$ 1,880

*Operating lease cost excludes $0 and $86 related to discontinued operations of the UK for the three and nine months ended September 30, 2019, respectively.
**Variable lease costs consist primarily of taxes, insurance, and common area or other maintenance costs for our domestic and foreign building leases, excluding approximately $0 and $11 related to discontinued operations of the UK for the three and nine months ended September 30, 2019, respectively.

Maturities of lease liabilities are as follows:


		Operating Leases		Financing Leases		Total
2019	$	503	$	29	$	532
2020		1,919		105		2,024
2021		1,588		31		1,619
2022		1,023		3		1,026
2023		416		-		416
2024 and thereafter		93		-		93
Total lease payments		5,542		168		5,710
Less: Interest		(456)		(5)		(461)
Present value of lease liabilities	$	5,086	$	163	$	5,249

As previously disclosed in Note 20 of the Notes to the Consolidated Financial Statements in our 2018 Annual Report on Form 10-K, prior to the adoption of ASU 2016-02, Leases (Topic 842), the future minimum payments required under lease agreements as of December 31, 2018 were 2019 - $2,417; 2020 - $2,255; 2021 - $1,689; 2022 - $950; 2023 - $188.