LEASES

3 Months Ended

Mar. 31, 2020

The Company has non-cancelable operating leases for its office and laboratory facilities, automobiles used by its sales force, and certain operating leases for office equipment.

The Company relocated its corporate headquarters from Newark, California to Lake Forest, Illinois in 2018 and subsequently entered into two subleases which, together, account for the entirety of the Newark facility. Each sublease contained abated rent periods resulting in reduced operating lease cash flows through May 2019. Operating lease costs and sublease income related to the Newark facility are accounted for in Other in the Consolidated Statements of Comprehensive Income. The Company has the right to renew the term of the Lake Forest lease for one period of five years, provided that written notice is made to the Landlord no later than twelve months prior to the expiration of the initial term of the Lease.

Lease expense during the period included the following (in thousands):



		Three Months Ended March 31,
	Financial Statement Classification	2020		2019
Operating lease cost	Selling, general and administrative expenses	$	157	$	187
Operating lease cost	Other	148		148
Total lease cost		$	305	$	335

Sublease Income	Other	$	347	$	362

LEASES

The Company has non-cancelable operating leases for its office and laboratory facilities, automobiles used by its sales force, and certain operating leases for office equipment.

Lease expense during the period included the following (in thousands):



		Three Months Ended March 31,
	Financial Statement Classification	2020		2019
Operating lease cost	Selling, general and administrative expenses	$	157	$	187
Operating lease cost	Other	148		148
Total lease cost		$	305	$	335

Sublease Income	Other	$	347	$	362