The Company periodically enters into leases in its normal course of business. At March 31, 2022, 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.

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 did not enter into any new lease agreements accounted for as a finance lease, during the first quarter of 2022.

As of March 31, 2022, future minimum lease payments applicable to operating and finance leases were as follows:

	Operating Leases		Finance Leases
2022		251		211
2023		243		242
2024		147		225
2025		35		112
2026		14		-
Total minimum lease payments		690		790
Less amounts representing interest		(29)		(75)
Present value of minimum lease payments		661		715
Less current obligations		(310)		(233)
Total long-term lease obligations, net	$	351	$	482
Weighted-average remaining lease term		2.5 years		2.4 years

Right-of-use assets recorded to the consolidated balance sheet at March 31, 2022 were $0.6 million for operating leases and $0.8 million for finance leases. For the three months ended March 31, 2022, 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 applies 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 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.