The Company rents facilities, equipment and vehicles under operating leases, some of which contain renewal options. Upon inception of a rent agreement, the Company determines whether the arrangement contains a lease based on the unique conditions present. Leases that have a term over a year are recognized on the balance sheet as right-of-use assets and lease liabilities. Right-of-use assets are included in other assets on the Company’s Consolidated Balance Sheet. Lease liabilities are included in other current liabilities and other long-term liabilities on the Company’s Consolidated Balance Sheet. Information regarding the Company's right-of-use assets and the corresponding lease liabilities at the years ended December 31 is as follows:


	December 31, 2023		December 31, 2022
	(In thousands)
Right-of-use assets	$	5,522	$	6,533
Lease liabilities		5,758		6,792

The Company’s operating lease agreements have lease and non-lease components that require payments for common area maintenance, property taxes and insurance. The Company has elected to account for both lease and non-lease components as one lease component. The fixed and in-substance fixed consideration in the Company’s rent agreements constitute operating lease expense that is included in the capitalized right-of-use assets and lease liabilities. The variable and short-term lease expense payments are not included in the present value of the right-of use-assets and lease liabilities on the Consolidated Balance Sheet. The Company’s rent expense for the years ended December 31 is as follows:


	2023		2022
	(In thousands)
Operating lease expense	$	3,406	$	3,447
Variable and short-term lease expense		192		76
Rent expense	$	3,598	$	3,523

The Company records right-of-use assets and lease liabilities based upon the present value of lease payments over the expected lease term. The Company’s lease agreements typically do not have implicit interest rates that are readily determinable. As a result, the Company utilizes an incremental borrowing rate that would be incurred to borrow on a collateralized basis over a similar term in a comparable economic environment. As of December 31, 2023 and 2022, the remaining lease term on the

Company’s leases was 5.3 years. As of December 31, 2023 and 2022, the discount rate was 5.0%. The future minimum lease payments to be paid under operating leases are as follows:


	December 31, 2023
	(In thousands)
2024	$	2,552
2025		1,964
2026		837
2027		225
2028		129
Thereafter		942
Total future lease payments		6,649
Present value adjustment		(891	)
Present value of future lease payments	$	5,758