Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

9. Leases

We have operating and finance lease obligations resulting from the lease of land and buildings that comprise our corporate headquarters and various manufacturing facilities; leases related to additional manufacturing, office, and warehouse space; leases on Company vehicles; and leases on a variety of office and other equipment.

We sublease, on an operating lease basis, two unused office space facilities near our corporate office. Total annual sub-lease rental income for these facilities is approximately $905,000.

Consolidated balance sheet information related to leases is as follows (in thousands, except lease term and discount rate):

Operating leases:		September 30, 2020		December 31, 2019
Operating lease right-of-use assets	$	28,365	$	27,007
Accumulated amortization		(8,927)		(5,013)
Operating lease right-of-use assets, net	$	19,438	$	21,994
Current maturities of operating leases	$	5,678	$	5,487
Non-current maturities of operating lease		15,026		17,918
Total operating lease liabilities	$	20,704	$	23,405
Finance leases:
Property and equipment, at cost	$	7,369	$	7,161
Accumulated amortization		(1,743)		(1,279)
Property and equipment, net	$	5,626	$	5,882
Current maturities of finance leases	$	595	$	597
Non-current maturities of finance leases		5,206		5,415
Total finance lease liabilities	$	5,801	$	6,012
Weighted average remaining lease term (in years):
Operating leases		5.2		5.5
Finance leases		10.0		10.6
Weighted average discount rate:
Operating leases		5.2%		5.4%
Finance leases		2.0%		2.0%

Current maturities of finance leases are included as a component of Other current liabilities and non-current maturities of finance leases are included as a component of Other long-term liabilities on our Summary Consolidated Balance Sheets. A summary of lease expenses for our finance and operating leases included in General, Administrative, and Marketing Expenses on our Summary Consolidated Statements of Operations and Comprehensive Income (Loss) are as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
		2020		2019		2020		2019
Amortization of property and equipment	$	164	$	188	$	487	$	608
Interest expense on finance leases		30		30		89		93
Total finance lease expense		194		218		576		701
Operating lease expense		1,806		1,717		5,324		4,870
Sublease income		(226)		(227)		(679)		(679)
Total lease expense	$	1,774	$	1,708	$	5,221	$	4,892

A summary of our cash flow information related to leases is as follows (in thousands):

		Nine Months Ended		Nine Months Ended
Cash paid for amounts included in the measurement of lease liabilities:		September 30, 2020		September 30, 2019
Operating cash flows for operating leases	$	5,438	$	5,004
Financing cash flows for finance leases		465		561
Operating cash flows for finance leases		92		91

Future minimum lease payments and sublease rental income are as follows (in thousands):

	Finance		Operating		Sublease
	Leases		Leases		Income
Remainder of 2020	$	178	$	1,435	$	226
2021		695		6,823		905
2022		639		4,340		306
2023		638		2,877		--
2024		636		2,706		--
Thereafter		3,612		5,283		--
Total minimum lease payments	$	6,398	$	23,464	$	1,437
Less amount representing interest		(597)		(2,760)
Present value of net minimum lease payments		5,801		20,704
Less current maturities		(595)		(5,678)
Lease liabilities, less current maturities	$	5,206	$	15,026