9. Leases

The Company leases various facilities in North America and Asia under operating leases expiring through December 2032. The Company has one non-cancellable lease agreement for a building in Mexico, which was executed, but had not commenced as of December 31, 2019, and accordingly was not included in the operating lease assets and operating lease liabilities as of December 31, 2019. Total commitments for the 15-year lease term of this agreement are $11,722,000. The Company also has finance leases for certain office and manufacturing equipment, which generally range from three to five years.

The Company determines if an arrangement contains a lease at inception. Lease assets and lease liabilities are recorded based on the present value of lease payments over the lease term, which includes the minimum unconditional term of the lease. Certain of the Company’s leases include options to extend the leases for up to five years. When the Company has the option to extend the lease term, terminate the lease before the contractual expiration date, or purchase the leased asset, and it is reasonably certain that it will exercise the option, the option is considered in determining the classification and measurement of the lease. The lease assets are recorded net of any lease incentives received. Lease assets are tested for impairment in the same manner as long-lived assets used in operations.

As the rate implicit for each of its leases is not readily determinable, the Company uses its incremental borrowing rate, based on the information available at the lease commencement date, for each of its leases in determining the present value of its expected lease payments. The Company’s incremental borrowing rate is determined by analyzing and combining an applicable risk-free rate, a financial spread adjustment and any lease specific adjustment. Certain leases contain provisions for property-related costs that are variable in nature for which the Company is responsible, including common area maintenance and other property operating services, which are expensed as incurred and not included in the determination of lease assets and lease liabilities. These costs are calculated based on a variety of factors including property values, tax and utility rates, property services fees, and other factors. The Company records rent expense for operating leases, some of which have escalating rent payments, on a straight-line basis over the lease term.

Balance sheet information for leases is as follows:

		December 31, 2019
Leases	Classification
Assets:
Operating	Operating lease assets	$	65,652,000
Finance	Plant and equipment		6,718,000
Total leased assets		$	72,370,000

Liabilities:
Current
Operating	Operating lease liabilities	$	4,991,000
Finance	Other current liabilities		1,965,000
Long-term
Operating	Long-term operating lease liabilities		61,805,000
Finance	Other liabilities		3,766,000
Total lease liabilities		$	72,527,000

Lease cost recognized in the condensed consolidated statement of operations is as follows:

	Three Months Ended December 31,		Nine Months Ended December 31,
	2019		2019
Lease cost
Operating lease cost	$	2,402,000	$	6,287,000
Short-term lease cost		278,000		976,000
Variable lease cost		133,000		420,000
Finance lease cost:
Amortization of finance lease assets		448,000		1,178,000
Interest on finance lease liabilities		73,000		214,000
Total lease cost	$	3,334,000	$	9,075,000

Maturities of lease commitments at December 31, 2019 were as follows:

Maturity of lease liabilities	Operating Leases			Finance Leases			Total
2020 - remaining three months	$	2,273,000		$	584,000		$	2,857,000
2021		8,472,000			2,095,000			10,567,000
2022		7,711,000			1,760,000			9,471,000
2023		6,544,000			1,149,000			7,693,000
2024		6,479,000			481,000			6,960,000
Thereafter		63,306,000			113,000			63,419,000
Total lease payments		94,785,000			6,182,000			100,967,000
Less amount representing interest		(27,989,000	)		(451,000	)		(28,440,000	)
Present value of lease liabilities	$	66,796,000		$	5,731,000		$	72,527,000

Other information about leases is as follows:

	Nine Months Ended December 31,
	2019
Lease term and discount rate
Weighted-average remaining lease term (years):
Finance leases		3.2
Operating leases		12.2
Weighted-average discount rate:
Finance leases		4.8	%
Operating leases		5.7	%