Leases Leases

12 Months Ended

Dec. 31, 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):

	For the years ending
	December 31,
	2019		2018
Operating lease expense	$	2,609	$	—
Finance lease expense:
Amortization of right-of-use assets	1,237		—
Interest on lease liabilities	10		—
Total finance lease expense	1,247		—
Short-term lease expense	123		—
Total lease expense	$	3,979	$	—
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,336		—
Operating cash flows from finance leases	10		—
Financing cash flows from finance leases	51		—

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

Years ending December 31,	Operating Leases			Finance Leases
2020	2,012			70
2021	1,962			70
2022	1,916			47
2023	1,976			40
2024	2,017			23
Thereafter	23,692			—
Total lease payments	$	33,575		$	250
Less: Interest	(16,116		)	(37		)
Present value of lease liabilities	$	17,459		$	213

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

	December 31, 2019
Operating Leases
Operating lease right-of-use assets	$	16,388
Current portion of lease liabilities	$	486
Long-term operating lease liabilities	16,973
Total operating lease liabilities	$	17,459
Finance Leases
Property and equipment	$	293
Accumulated depreciation	(28		)
Property and equipment, net	$	265
Current portion of lease liabilities	$	55
Long-term finance lease liabilities	158
Total finance lease liabilities	$	213
Weighted Average Remaining Lease Term
Operating leases	16.6 years
Finance leases	4.6 years
Weighted Average Discount Rate
Operating leases	8.9		%
Finance leases	9.0		%

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):

	For the years ending
	December 31,
	2019		2018
Operating lease expense	$	2,609	$	—
Finance lease expense:
Amortization of right-of-use assets	1,237		—
Interest on lease liabilities	10		—
Total finance lease expense	1,247		—
Short-term lease expense	123		—
Total lease expense	$	3,979	$	—
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	2,336		—
Operating cash flows from finance leases	10		—
Financing cash flows from finance leases	51		—

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

Years ending December 31,	Operating Leases			Finance Leases
2020	2,012			70
2021	1,962			70
2022	1,916			47
2023	1,976			40
2024	2,017			23
Thereafter	23,692			—
Total lease payments	$	33,575		$	250
Less: Interest	(16,116		)	(37		)
Present value of lease liabilities	$	17,459		$	213

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

	December 31, 2019
Operating Leases
Operating lease right-of-use assets	$	16,388
Current portion of lease liabilities	$	486
Long-term operating lease liabilities	16,973
Total operating lease liabilities	$	17,459
Finance Leases
Property and equipment	$	293
Accumulated depreciation	(28		)
Property and equipment, net	$	265
Current portion of lease liabilities	$	55
Long-term finance lease liabilities	158
Total finance lease liabilities	$	213
Weighted Average Remaining Lease Term
Operating leases	16.6 years
Finance leases	4.6 years
Weighted Average Discount Rate
Operating leases	8.9		%
Finance leases	9.0		%