The Company is a lessee under leases of manufacturing facilities, office spaces, machinery, certain office equipment and vehicles. A majority of the Company’s leases are operating leases with remaining lease terms between one month and 10 years. Finance leases are immaterial to the Company’s consolidated financial statements. The Company determines if an arrangement qualifies as a lease and what type of lease it is at inception. The Company elected the package of practical expedients permitted under the transition guidance within the new lease standard, which among other things, allowed it to continue to account for existing leases based on the historical lease classification. The Company also elected the practical expedients to combine lease and

non-lease

components and to exclude right of use assets and lease liabilities for leases with an initial term of 12 months or less from the balance sheet.

Some of the lease agreements the Company enters into include Company options to either extend and/or early terminate the lease, the costs of which are included in the Company’s operating lease liabilities to the extent that such options are reasonably certain of being exercised. Leases with renewal options allow the Company to extend the lease term typically between 1 and 5 years per option, some of its leases have multiple options to extend. When determining if a renewal option is reasonably certain of being exercised, the Company considers several economic factors, including but not limited to, the significance of leasehold improvements incurred on the property, whether the asset is difficult to replace, underlying contractual obligations, or specific characteristics unique to that particular lease that would make it reasonably certain that the Company would exercise such options.

As of December 31, 2020 and 2019, operating lease right of use assets were $25.2 million and $25.7 million, respectively and operating lease liabilities were $31.7 million and $30.6 million, respectively. The Company acquired EMT, NMS and ARTeSYN in 2020 and entered into a number of automobile leases among others. As a result, the operating right of use asset and operating lease liability balances increased by a total of $3.0 million in 2020 on their commencement dates. On July 7, 2020, the Company entered into a First Amendment to the current lease agreement associated with our Marlborough, Massachusetts facility, to expand the existing premises by 66,939 square feet and in December 2020, the Second Amendment to the current lease agreement was signed

changing the commencement date of the expansion lease from April 1, 2021 to January 1, 2021. As a result, the operating right of use asset and operating lease liability balances increased by a total of

approximately $2.8 million. Amounts related to financing leases were immaterial. The maturities of the Company’s operating lease liabilities as of December 31, 2020 are as follows (amounts in thousands):


As of December 31, 2020	Amount
2021	$	7,007
2022		5,732
2023		4,614
2024		4,162
2025		3,653
2026 and thereafter		12,949

Total future minimum lease payments		38,117
Less: amount of lease payment representing interest		6,438

Total operating lease liabilities	$	31,679

Total operating lease liabilities included on the Company’s consolidated balance sheet are as follows (amounts in thousands):


	December 31,
	2020		2019
Operating lease liability	$	5,254	$	3,557
Operating lease liability, long-term		26,425		26,995

Minimum operating lease payments	$	31,679	$	30,552

Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. For the year ended December 31, 2020 and 2019, total lease cost is comprised of the following:


	For the Years Ended December 31,
Lease Cost	2020		2019
	(Amounts in thousands)
Operating lease cost	$	5,645	$	4,480
Variable operating lease cost		2,033		1,480

Lease cost	$	7,678	$	5,960

The following information represents supplemental disclosure for the consolidated statements of cash flows related to operating leases (amounts in thousands):


	For the Years Ended December 31,
	2020			2019
Operating lease cost	$	(5,647	)	$	(4,004	)

Most of the leases do not provide implicit interest rates and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for the Company’s leases is determined based on lease term and currency in which the lease payments are made.

The weighted average remaining lease term and the weighted average discount rate used to measure the Company’s operating lease liabilities as of December 31, 2020 were:


Weighted average remaining lease term (years)	7.19
Weighted average discount rate	4.90	%