10. LEASES

Accounting Standards Update ASU No. 2016-02, Leases (Topic 842), requires the Company to recognize a right of use ("ROU") asset and a lease liability for all leases with terms greater than 12 months. Refer to Note 1, Business and Summary of Significant Accounting Policies, for discussion of the adoption of Topic 842.

The Company has operating leases for office space, manufacturing equipment, computer equipment and automobiles. Many leases include one or more options to renew, some of which include options to extend the leases for a long-term period, and some leases include options to terminate the leases within 30 days. In certain of the Company's lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for capital area maintenance, utilities, inflation and/or changes in other indexes.

For the year ended December 31, 2019, the components of operating lease expense were as follows (in thousands):


	December 31, 2019
Fixed operating lease expense	$	4,018
Variable operating lease expense		733
	$	4,751

Supplemental cash flow information related to the Company’s operating leases for the year ended December 31, 2019 was as follows (in thousands):


Cash paid for amounts included in the measurement of operating leases	$	4,886
ROU assets obtained in exchange for operating lease obligations	$	20,717

The following table presents the lease balances within the consolidated balance sheet, weighted average remaining lease term, and weighted average discount rates related to the Company’s operating leases as of December 31, 2019 (in thousands except for the weighted average remaining lease term and weighted average discount rate):


Lease assets and liabilities	Classification		Amount
Assets:
Right of use asset		Other long-term assets	$	16,420

Liabilities:
Current
Right of use liability, current		Accrued liabilities	$	3,203
Long-term
Right of use liability, long-term		Other long-term liabilities		13,715
Total ROU lease liabilities			$	16,918

Weighted average remaining lease term				8.27
Weighted average discount rate				2.91	%

The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2019 (in thousands):


2020	$	3,635
2021		2,935
2022		2,328
2023		2,065
2024		1,641
Thereafter		6,087
Total undiscounted cash flows		18,691
Less: present value discount		(1,773)
Total lease liabilities	$	16,918

As of December 31, 2019, the Company had no additional significant operating or finance leases that had not yet commenced.