The Company periodically enters into leases in its normal course of business. At March 31, 2020, the leases in effect were primarily related to mobile and other production equipment. The term of our leases is generally 60 months or less, and the leases do not have significant restrictions, covenants, or other nonstandard terms.

We adopted the guidance effective in Leases (Topic 842) on January 1, 2019. Adoption of this guidance did not change the balance sheet recognition of our finance leases or the income statement recognition of our finance or operating leases. As a result of adopting the guidance, the Company recorded lease liabilities and right-of-use assets related to its operating leases. The impact at adoption was immaterial to the Company’s consolidated financial statements.

Right-of-use assets and lease liabilities are recorded at the present value of minimum lease payments. For our operating leases, the assets are included in Other long-term assets on the consolidated balance sheets and are amortized within operating income over the respective lease terms. The long-term component of the lease liability is included in Other long-term liabilities, net, and the current component is included in Other current liabilities. For our finance leases, the assets are included in Property, plant and equipment, net on the consolidated balance sheets and are depreciated over the respective lease terms which range from three to five years. The long-term component of the lease liability is included in Long-term debt and the current component is included in Current portion of long-term debt.

The Company did not enter into any new lease agreements accounted for as operating or finance leases during the first quarter of 2020.

As of March 31, 2020, future minimum lease payments applicable to operating and finance leases were as follows:

	Operating Leases		Finance Leases
2020	$	159	$	434
2021		192		471
2022		181		56
2023		87		15
2024		11		-
Total minimum lease payments	$	630	$	976
Less amounts representing interest		(36)		(75)
Present value of minimum lease payments	$	594	$	901
Less current obligations		(204)		(774)
Total long-term lease obligations, net	$	390	$	127
Weighted-average remaining lease term		3.2 years		1.1 years

Right-of-use assets recorded to the consolidated balance sheet at March 31, 2020 were $0.6 million for operating leases and $0.6 million for finance leases. For the three months ended March 31, 2020, the amortization of finance lease assets was $0.1 million, and was included in cost of products sold in the Consolidated Statements of Operations.

The Company elected the practical expedient allowed under Leases (Topic 842) to exclude leases with a term of 12 months or less from the calculation of our lease liabilities and right-of-use assets.

In determining the lease liability and corresponding right-of-use asset for each lease, the Company calculated the present value of future lease payments using the interest rate implicit in the lease, when available, or the Company’s incremental borrowing rate. The incremental borrowing rate was determined with reference to the interest rate applicable under our senior secured revolving credit facility discussed in Note 6, Long-Term Debt, as this facility is collateralized by a first lien on substantially all of the assets of the Company and its term is similar to the term of our leases.