Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

Leases

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 leases for corporate offices, research and development facilities, warehouses, sales offices and equipment. 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.

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 expected 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 expected lease term.

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

	Three months ended September 30, 2019		Nine months ended September 30, 2019
Operating lease expense	$	652	$	1,958
Finance lease expense:
Amortization of right-of-use assets	357		577
Interest on lease liabilities	3		6
Total finance lease expense	360		583
Short-term lease expense	22		97
Total lease expense	$	1,034	$	2,638
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	584	$	1,749
Operating cash flows from finance leases	3		6
Financing cash flows from finance leases	6		51

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

Year ending December 31,	Operating Leases			Finance Leases
2019 (excluding the three months ended September 30, 2019)	$	586		$	17
2020	2,335			70
2021	2,293			70
2022	2,257			46
2023	2,166			38
Thereafter	25,695			22
Total lease payments	$	35,332		$	263
Less: Interest	(16,678		)	(43		)
Present value of lease liabilities	$	18,654		$	220

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

	September 30, 2019
Operating Leases
Operating lease right-of-use assets	$	17,625
Current portion of lease liabilities	$	709
Long-term operating lease liabilities	17,945
Total operating lease liabilities	$	18,654
Finance Leases
Property and equipment	$	293
Accumulated depreciation	(19		)
Property and equipment, net	$	274
Current portion of lease liabilities	$	48
Long-term finance lease liabilities	172
Total finance lease liabilities	$	220
Weighted Average Remaining Lease Term
Operating leases	15.7 years
Finance leases	4.8 years
Weighted Average Discount Rate
Operating leases	8.9		%
Finance leases	8.5		%

Leases

Leases

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 leases for corporate offices, research and development facilities, warehouses, sales offices and equipment. 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.

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 expected 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 expected lease term.

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

	Three months ended September 30, 2019		Nine months ended September 30, 2019
Operating lease expense	$	652	$	1,958
Finance lease expense:
Amortization of right-of-use assets	357		577
Interest on lease liabilities	3		6
Total finance lease expense	360		583
Short-term lease expense	22		97
Total lease expense	$	1,034	$	2,638
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	584	$	1,749
Operating cash flows from finance leases	3		6
Financing cash flows from finance leases	6		51

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

Year ending December 31,	Operating Leases			Finance Leases
2019 (excluding the three months ended September 30, 2019)	$	586		$	17
2020	2,335			70
2021	2,293			70
2022	2,257			46
2023	2,166			38
Thereafter	25,695			22
Total lease payments	$	35,332		$	263
Less: Interest	(16,678		)	(43		)
Present value of lease liabilities	$	18,654		$	220

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

	September 30, 2019
Operating Leases
Operating lease right-of-use assets	$	17,625
Current portion of lease liabilities	$	709
Long-term operating lease liabilities	17,945
Total operating lease liabilities	$	18,654
Finance Leases
Property and equipment	$	293
Accumulated depreciation	(19		)
Property and equipment, net	$	274
Current portion of lease liabilities	$	48
Long-term finance lease liabilities	172
Total finance lease liabilities	$	220
Weighted Average Remaining Lease Term
Operating leases	15.7 years
Finance leases	4.8 years
Weighted Average Discount Rate
Operating leases	8.9		%
Finance leases	8.5		%