The Company determines whether an arrangement is or contains a lease at the inception of the arrangement. Operating leases are included in other non-current assets, accrued expenses and other non-current liabilities in our condensed consolidated balance sheets. Finance leases are included in property, plant and equipment, net, short-term debt and long-term debt (less current portion) in our condensed consolidated balance sheets.

Right-of-use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Finance and operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of the lease payments over the lease term. Since we generally do not have access to the interest rate implicit in the lease, the Company uses our incremental borrowing rate (for fully collateralized debt) at the inception of the lease in determining the present value of the lease payments. The implicit rate is, however, used where readily available. Lease expense under operating leases is recognized on a straight-line basis over the term of the lease. Certain of our leases contain both lease and non-lease components, which are accounted for separately.

The Company has operating and finance leases for office facilities, a data center and certain equipment. The remaining terms of our leases range from over one year to seven years. Certain leases include options to extend the lease term for up to ten years, as well as options to terminate, both of which have been excluded from the term of the lease since exercise of these options is not reasonably certain.

Lease expense and cash flow for the three and six months ended June 30, 2022 and 2021 and operating and finance lease assets and liabilities, average lease term and average discount rate as of June 30, 2022 and December 31, 2021 are as follows:

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022			June 30, 2021
Lease Expense
(Dollars in thousands)
Finance lease expense:
Amortization of right-of-use assets	$	259	$	350	$	573		$	671
Interest on lease liabilities		14		23		29			45
Operating lease expense		659		791		1,345			1,648
Total lease expense	$	932	$	1,164	$	1,947		$	2,364


Cash Flow Components
(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from finance leases	$	14	$	23	$	29		$	45
Operating cash outflows from operating leases		711		871		1,469			1,803
Financing cash outflows from finance leases		243		357		547			645
Right-of-use assets obtained in exchange for finance lease liabilities, net of terminations and disposals		212		79		335			835
Right-of-use assets obtained in exchange for operating lease liabilities, net of terminations and disposals		61		56		232			208


					June 30, 2022			December 31, 2021
Balance Sheet Information
(Dollars in thousands, except lease term and discount rate)
Operating leases:
Other non-current assets					$	9,195		$	10,772
Accrued liabilities					$	(2,128	)	$	(2,371	)
Other non-current liabilities						(7,402	)		(8,860	)
Total operating lease liabilities					$	(9,530	)	$	(11,231	)

Finance leases:
Property, plant and equipment gross					$	7,098		$	6,603
Accumulated depreciation						(4,071	)		(4,644	)
Property, plant and equipment, net					$	3,027		$	1,959
Current portion of long-term debt					$	(855	)	$	(982	)
Long-term debt (less current portion)						(1,414	)		(1,629	)
Total finance lease liabilities					$	(2,269	)	$	(2,611	)

Lease Term and Discount Rates
Weighted-average remaining lease term - finance leases (years)						3.4			3.4
Weighted-average remaining lease term - operating leases (years)						5.0			5.0
Weighted-average discount rate - finance leases						2.9	%		2.8	%
Weighted-average discount rate - operating leases						3.6	%		3.6	%

	Amount
Lease Maturities	Finance Leases			Operating Leases
(Dollars in thousands)
Six remaining months of 2022	$	855		$	1,506
2023		671			2,388
2024		286			2,134
2025		162			1,983
2026		128			1,848
Thereafter		262			487
Total		2,364			10,346
Less: Imputed interest		(95	)		(816	)
Total lease liabilities, net of interest	$	2,269		$	9,530