We lease property and equipment under operating lease arrangements, most of which relate to distribution centers and manufacturing facilities in the U.S., Honduras, El Salvador, and Mexico. We also lease machinery and equipment under finance lease arrangements in the U.S. We include both the contractual term as well as any renewal option that we are reasonably certain to exercise in the determination of our lease terms. For leases with a term of greater than months, we value lease liabilities and the related assets as the present value of the lease payments over the related term. We apply the short-term lease exception to leases with a term of months or less and exclude such leases from our Condensed Consolidated Balance Sheets. Payments related to these short-term leases are expensed on a straight-line basis over the lease term and reflected as a component of lease cost within our Condensed Consolidated Statements of Comprehensive Income (Loss). Lease payments generally consist of fixed amounts, and variable amounts based on a market rate or an index are material to our consolidated lease cost. Our operating lease agreements for buildings generally include provisions for the payment of our proportional share of operating costs, property taxes, and other variable payments. These incremental payments are excluded from our calculation of operating lease liabilities and right of use assets. We have elected to use the practical expedient present in ASC to separate lease and non-lease components for all significant underlying asset classes and instead account for them together as a single lease component in the measurement of our lease liabilities.

 

Generally, the rate implicit in our operating leases is readily determinable. Therefore, we discount future lease payments using our estimated incremental borrowing rate at lease commencement. We determine this rate based on a credit-adjusted risk-free rate, which approximates a secured rate over the lease term. The weighted average discount rate for operating leases as of was We discount our finance lease payments based on the rate implicit and stated in the lease. The weighted average discount rate for finance leases as of was

 

The following table presents the future undiscounted payments due on our operating and finance lease liabilities as well as a reconciliation of those payments to our operating and finance lease liabilities, recorded as of in thousands):

 

		Operating				Finance
		Leases				Leases
2020		$	7,740			$	5,758
2021			8,616				6,384
2022			7,260				4,176
2023			5,526				3,164
2024			4,355				1,666
Thereafter			15,937				-
Undiscounted fixed lease payments		$	49,434			$	21,148
Discount due to interest			(6,507	)			(1,592)
Total lease liabilities		$	42,927			$	19,556
Less current maturities			(8,497	)			(6,822	)
Lease liabilities, excluding current maturities		$	34,430			$	12,734

 

As of we have entered into certain operating leases that have yet commenced and which will result in annual fixed lease payments that range from million to million for a -year period.

 

Our Ceiba Textiles manufacturing facility is leased under an operating lease arrangement with a Honduran company, of which we own of the outstanding capital stock of the lessor at During the -months ended and we paid approximately million in lease payments under this arrangement.

 

As of we recorded million of operating lease ROU assets, which were reflected within Operating lease assets in our Condensed Consolidated Balance Sheets, and million of finance lease ROU assets, which were reflected within Property, plant, and equipment, net in our Condensed Consolidated Balance Sheets.

 

The weighted average remaining lease terms for our operating leases and finance leases were approximately  years and  years, respectively, as of

 

The components of total lease cost were as follows for the months ended in thousands):

 

Operating lease cost		$	2,750
Finance leases - amortization of ROU assets			768
Finance leases - interest			235
Variable lease costs			410
Total lease cost		$	4,163

 

Total rent expense recognized during the months ended prior to the adoption of ASC was million.

 

Operating cash outflows for operating lease payments during the months ended was million.  Financing cash outflows for finance lease payments during the months ended was million.  Operating cash outflows for interest payments for finance leases during the months ended was million.

 

ROU assets obtained in exchange for operating lease and finance lease liabilities during the months ended were million and million, respectively. During the -month period ended ROU assets obtained for finance lease liabilities were million.

 

We do have significant leasing transactions in which we are the lessor.