Leases (Notes)

3 Months Ended

Mar. 31, 2019

Effective January 1, 2019, the Company adopted ASC 842 using the prospective method applied to those leases which were not completed as of December 31, 2018. The Company has operating leases for corporate offices, research and development facilities, warehouses, and sales offices. The leases have remaining lease terms of 1 year to 19 years, some of which include options to extend the leases for up to 10 years. In addition, the Company has finance leases for equipment. These leases commenced on March 31, 2019 and have remaining lease terms of 64 months. There have been no payments or any expense recognized in connection with these finance leases as of March 31, 2019.

Upon adoption, the Company recorded operating lease ROU assets and corresponding operating lease liabilities, net of deferred rent, of approximately $18.4 million, representing the present value of future lease payments under operating leases with terms of greater than twelve months. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The components of lease expense and supplemental cash flow information are as follows (in thousands):



	Three months ended March 31,
	2019
Operating lease expense	$	653
Short-term lease expense	43
Total lease expense	$	696

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	582

Maturities of lease liabilities are as follows (in thousands):



Year ending December 31,	Operating Leases			Finance Leases
2019 (excluding the three months ended March 31, 2019)	$	1,756		$	29
2020	2,346			39
2021	2,305			39
2022	2,269			39
2023	2,178			39
Thereafter	25,859			22
Total lease payments	$	36,713		$	207
Less: Interest	(17,621		)	(40		)
Present value of lease liabilities	$	19,092		$	167

Supplemental balance sheet information related to leases is as follows (in thousands):



	March 31, 2019
Operating Leases
Operating lease right-of-use assets	$	18,202

Current portion of lease liabilities	$	676
Operating lease liabilities	18,416
Total operating lease liabilities	$	19,092

Finance Leases
Property and equipment	$	210
Accumulated depreciation	—
Property and equipment, net	$	210

Current portion of lease liabilities	$	37
Finance lease liabilities	130
Total finance lease liabilities	$	167

Weighted Average Remaining Lease Term
Operating leases	15.7 years
Finance leases	5.3 years

Weighted Average Discount Rate
Operating leases	8.9		%
Finance leases	8.5		%

Leases

The components of lease expense and supplemental cash flow information are as follows (in thousands):



	Three months ended March 31,
	2019
Operating lease expense	$	653
Short-term lease expense	43
Total lease expense	$	696

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	582

Maturities of lease liabilities are as follows (in thousands):



Year ending December 31,	Operating Leases			Finance Leases
2019 (excluding the three months ended March 31, 2019)	$	1,756		$	29
2020	2,346			39
2021	2,305			39
2022	2,269			39
2023	2,178			39
Thereafter	25,859			22
Total lease payments	$	36,713		$	207
Less: Interest	(17,621		)	(40		)
Present value of lease liabilities	$	19,092		$	167

Supplemental balance sheet information related to leases is as follows (in thousands):



	March 31, 2019
Operating Leases
Operating lease right-of-use assets	$	18,202

Current portion of lease liabilities	$	676
Operating lease liabilities	18,416
Total operating lease liabilities	$	19,092

Finance Leases
Property and equipment	$	210
Accumulated depreciation	—
Property and equipment, net	$	210

Current portion of lease liabilities	$	37
Finance lease liabilities	130
Total finance lease liabilities	$	167

Weighted Average Remaining Lease Term
Operating leases	15.7 years
Finance leases	5.3 years

Weighted Average Discount Rate
Operating leases	8.9		%
Finance leases	8.5		%