Leases

12 Months Ended

Dec. 31, 2020

12. Leases

Most leases held by the Company expire between 2021 and 2034. In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078. Certain leases include terms such as an option to purchase the property, one or more options to renew, with renewal terms that can extend the lease term from one to 10 years, and options to terminate the leases within one year. The exercise of lease renewal or termination option is at the Company’s sole discretion; therefore, the majority of renewals to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable life of right-of-use assets and leasehold improvements is limited to the expected lease terms.

The following table summarizes the components of lease costs (in thousands):

	Year Ended December 31,
	2020		2019
Operating lease cost	$	7,693	$	7,638
Finance lease cost
Amortization of right-of-use assets		989		831
Interest on lease liabilities		432		430
Variable lease cost		1,336		1,329
Total lease cost	$	10,450	$	10,228

The following table provides the details of balance sheet information related to leases as of the date indicated (in thousands, except lease term and discount rate):

	December 31,
	2020			2019
Operating leases
Operating lease right-of-use assets	$	34,444		$	35,180

Current portion of operating lease liabilities	$	6,188		$	5,043
Operating lease liabilities		32,802			34,108
Total operating lease liabilities	$	38,990		$	39,151

Finance leases
Property, plant and equipment, gross	$	19,819		$	19,748
Accumulated depreciation		(4,934	)		(4,649	)
Finance lease assets included in property, plant and equipment, net	$	14,885		$	15,099

Accrued expenses and other current liabilities	$	9,720		$	1,307
Other liabilities		5,908			14,845
Total finance lease liabilities	$	15,628		$	16,152

Weighted-average remaining lease term (in years)
Operating leases		9.3			10.2
Finance leases		3.5			4.7
Weighted-average discount rate
Operating leases		5.50	%		5.60	%
Finance leases		3.00	%		3.09	%

The following table provides the details of cash flow information related to leases (in thousands):

	Year Ended December 31,
	2020		2019
Cash paid for amounts included in lease liabilities:
Operating cash flows from finance leases	$	432	$	430
Operating cash flows from operating leases	$	6,760	$	7,768
Financing cash flows from finance leases	$	1,321	$	868
Supplemental non-cash information:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4,290	$	7,723
Right-of-use assets obtained in exchange for new finance lease liabilities	$	-	$	9,209

Future minimum lease payments under operating and finance leases expiring subsequent to December 31, 2020, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands):

Year Ended December 31,	Operating Leases			Finance Leases⁽¹⁾
2021	$	7,297		$	10,060
2022		6,937			907
2023		5,782			930
2024		4,811			954
2025		4,809			954
Thereafter		22,037			3,487
Total minimum lease payments		51,673			17,292
Less: interest		(12,683	)		(1,664	)
Present value of lease liabilities	$	38,990		$	15,628

(1)

Future minimum lease payments under finance leases include the exercise price of an option to purchase a facility in Germany exercised by the Company in December 2020 and expected to close in March 2021.