LEASES

3 Months Ended

Mar. 31, 2021

LEASES

LEASES

NOTE 15.    LEASES

The Company leases manufacturing and office space under non-cancelable operating leases. Some of these leases contain provisions for landlord funded leasehold improvements which are recorded as a reduction to right-of-use ("ROU") assets and the related operating lease liabilities. For leases containing an option to renew, we regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease terms, along with the ROU assets and operating lease liabilities. In many cases, we have lease terms that are less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our ROU assets and operating lease liabilities. New leases are negotiated and executed to meet business objectives on an on-going basis. 

Our leases do not provide an implicit rate. Accordingly, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, we apply a portfolio approach for determining the incremental borrowing rate applicable to the lease term.

Components of operating lease cost were as follows:

	Three Months Ended March 31,
	2021		2020
Operating lease cost	$	5,921	$	4,834
Short-term and variable lease cost		842		1,308
Total operating lease cost	$	6,763	$	6,142

Maturities of our operating lease liabilities at March 31, 2021 are as follows:

Year Ending December 31,
2021 (remaining)	$	15,482
2022		16,723
2023		13,503
2024		12,120
2025		10,664
Thereafter		74,413
Total lease payments		142,905
Less: Interest		(33,375)
Present value of lease liabilities	$	109,530

Other information related to leases, including supplemental cash flow information, consists of:

	Three Months Ended March 31,
	2021			2020
Weighted average remaining lease term (in years)		10.6			9.7
Weighted average discount rate		4.6	%		4.3	%
Cash paid for operating leases	$	5,958		$	5,574
Right-of-use assets obtained in exchange for operating lease liabilities	$	2,192		$	22,208