XML 23 R12.htm IDEA: XBRL DOCUMENT

Leases

9 Months Ended

Sep. 30, 2020

During the first quarter of 2020, the Company made the decision to cease use of the corporate headquarters leased offices and move corporate employees to the Global Research and Innovation Center (“GRIC”) during second quarter of 2020. In addition, the lease liability and corresponding ROU assets for the corporate headquarters and GRIC were remeasured to remove the anticipated term extensions as the Company determined it was no longer reasonably certain to utilize the extension at the GRIC. The remeasurement resulted in adjustments to lease liabilities and ROU assets totaling of $6.2 million each as of March 31, 2020.

In addition, during the three months ended March 31, 2020, the Company recorded an impairment of the ROU assets totaling $7.4 million. For further discussion, refer to Note 10, “Impairment of Fixed and Long-lived Assets.”

During the second quarter of 2020, the Company terminated the lease of the corporate headquarters office in exchange for a one-time payment of $1.0 million and moved all employees to the GRIC facility effective as of June 29, 2020. As a result of terminating the corporate headquarters office lease and making the one-time payment, the Company recorded a gain on lease termination of $0.6 million recorded in gain on lease termination.

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



	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Operating lease expense	$	258	$	652	$	1,112	$	1,958
Finance lease expense:
Amortization of right-of-use assets	4		357		13		577
Interest on lease liabilities	5		3		14		6
Total finance lease expense	9		360		27		583
Short-term lease expense	57		22		145		97
Total lease expense	$	324	$	1,034	$	1,284	$	2,638

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	317	$	584	$	2,312	$	1,749
Operating cash flows from finance leases	5		3		13		6
Financing cash flows from finance leases	51		6		152		51

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



Years ending December 31,	Operating Leases			Finance Leases
2020 (excluding the nine months ended September 30, 2020)	$	311		$	17
2021	1,330			70
2022	1,283			47
2023	1,311			39
2024	1,341			23
Thereafter	8,185			—
Total lease payments	$	13,761		$	196
Less: Interest	(4,702		)	(24		)
Present value of lease liabilities	$	9,059		$	172

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



	September 30, 2020			December 31, 2019
Operating Leases
Operating lease right-of-use assets	$	2,368		$	16,388

Current portion of operating lease liabilities	$	651		$	486
Long-term operating lease liabilities	8,408			16,973
Total operating lease liabilities	$	9,059		$	17,459

Finance Leases
Property and equipment	$	147		$	293
Accumulated depreciation	(18		)	(28		)
Property and equipment, net	$	129		$	265

Current portion of finance lease liabilities	$	58		$	55
Long-term finance lease liabilities	114			158
Total finance lease liabilities	$	172		$	213

Weighted Average Remaining Lease Term
Operating leases	9.9 years			16.6 years
Finance leases	3.8 years			4.6 years

Weighted Average Discount Rate
Operating leases	8.9		%	8.9		%
Finance leases	8.5		%	9.0		%

Leases

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



	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Operating lease expense	$	258	$	652	$	1,112	$	1,958
Finance lease expense:
Amortization of right-of-use assets	4		357		13		577
Interest on lease liabilities	5		3		14		6
Total finance lease expense	9		360		27		583
Short-term lease expense	57		22		145		97
Total lease expense	$	324	$	1,034	$	1,284	$	2,638

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	317	$	584	$	2,312	$	1,749
Operating cash flows from finance leases	5		3		13		6
Financing cash flows from finance leases	51		6		152		51

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



Years ending December 31,	Operating Leases			Finance Leases
2020 (excluding the nine months ended September 30, 2020)	$	311		$	17
2021	1,330			70
2022	1,283			47
2023	1,311			39
2024	1,341			23
Thereafter	8,185			—
Total lease payments	$	13,761		$	196
Less: Interest	(4,702		)	(24		)
Present value of lease liabilities	$	9,059		$	172

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



	September 30, 2020			December 31, 2019
Operating Leases
Operating lease right-of-use assets	$	2,368		$	16,388

Current portion of operating lease liabilities	$	651		$	486
Long-term operating lease liabilities	8,408			16,973
Total operating lease liabilities	$	9,059		$	17,459

Finance Leases
Property and equipment	$	147		$	293
Accumulated depreciation	(18		)	(28		)
Property and equipment, net	$	129		$	265

Current portion of finance lease liabilities	$	58		$	55
Long-term finance lease liabilities	114			158
Total finance lease liabilities	$	172		$	213

Weighted Average Remaining Lease Term
Operating leases	9.9 years			16.6 years
Finance leases	3.8 years			4.6 years

Weighted Average Discount Rate
Operating leases	8.9		%	8.9		%
Finance leases	8.5		%	9.0		%