The Company periodically enters into leases in its normal course of business. At June 30, 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 entered into one new lease agreement accounted for as an operating lease and one new lease agreement accounted for as a modification of an existing finance lease during the second quarter of 2020.

As of June 30, 2020, future minimum lease payments applicable to operating and finance leases were as follows:

	Operating Leases		Finance Leases
2020	$	107	$	165
2021		197		319
2022		186		278
2023		93		242
2024		19		225
2025		-		112
Total minimum lease payments	$	602	$	1,341
Less amounts representing interest		(31)		(184)
Present value of minimum lease payments	$	571	$	1,157
Less current obligations		(203)		(261)
Total long-term lease obligations, net	$	368	$	896
Weighted-average remaining lease term		3.1 years		4.1 years

Right-of-use assets recorded to the consolidated balance sheet at June 30, 2020 were $0.6 million for operating leases and $0.8 million for finance leases. For the three and six months ended June 30, 2020, the amortization of finance lease assets was $0.1 million and $0.3 million, respectively, 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.