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Leases
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
The Company has leases for corporate offices, research and development facilities, warehouses, sales offices and equipment. The leases have remaining lease terms of one to fifteen years, some of which include options to extend the leases for up to ten years. The Company’s largest lease is for the Global Research and Innovation Center (“GRIC”). The lease was entered into on July 12, 2015, with a fifteen-year term and an option to renew for an additional seven years. The rent payments on the GRIC lease escalate each year until the end of the term.
Operating lease right-of-use assets and corresponding operating lease liabilities, net of deferred rent, represent 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 discount rate used upon adoption of ASC 842, “Leases,” in the calculation was the incremental borrowing rate on the revolving credit facility in 2019.
During the first quarter of 2020, the Company ceased use of the corporate headquarters leased offices and moved corporate employees to the GRIC during the second quarter of 2020. In addition, the lease liability and corresponding right-of-use 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 right-of-use assets totaling of $6.2 million at March 31, 2020.
In addition, during the first quarter of 2020, the Company recorded an impairment of the right-of-use assets totaling $7.4 million. See Note 11, “Impairment of Fixed, Long-lived and Intangible 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 corporate 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.
The components of lease expense and supplemental cash flow information are as follows (in thousands):
For the years ended
December 31,
20202019
Operating lease expense$1,370 $2,609 
Finance lease expense:
Amortization of right-of-use assets17 1,237 
Interest on lease liabilities18 10 
Total finance lease expense35 1,247 
Short-term lease expense202 123 
Total lease expense$1,607 $3,979 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$2,884 $2,336 
Operating cash flows from finance leases18 10 
Financing cash flows from finance leases70 51 


Maturities of lease liabilities are as follows (in thousands):
Years ending December 31,Operating LeasesFinance Leases
2021$1,367 $69 
20221,289 46 
20231,317 39 
20241,347 23 
20251,347 — 
Thereafter6,865 — 
Total lease payments13,532 177 
Less: Interest(4,548)(21)
Present value of lease liabilities$8,984 $156 
Supplemental balance sheet information related to leases is as follows for the years ended December 31 (in thousands):
20202019
Operating Leases
Operating lease right-of-use assets$2,320 $16,388 
Current portion of operating lease liabilities$636 $486 
Long-term operating lease liabilities8,348 16,973 
Total operating lease liabilities$8,984 $17,459 
Finance Leases
Property and equipment$147 $293 
Accumulated depreciation(26)(28)
Property and equipment, net$121 $265 
Current portion of finance lease liabilities$60 $55 
Long-term finance lease liabilities96 158 
Total finance lease liabilities$156 $213 
Weighted Average Remaining Lease Term
Operating leases9.9 years16.6 years
Finance leases3.1 years4.6 years
Weighted Average Discount Rate
Operating leases8.9 %8.9 %
Finance leases9.0 %9.0 %
Rent expense under operating leases totaled $1.6 million for the year ended December 31, 2020, and $2.9 million for the year ended December 31, 2019.
Leases Leases
The Company has leases for corporate offices, research and development facilities, warehouses, sales offices and equipment. The leases have remaining lease terms of one to fifteen years, some of which include options to extend the leases for up to ten years. The Company’s largest lease is for the Global Research and Innovation Center (“GRIC”). The lease was entered into on July 12, 2015, with a fifteen-year term and an option to renew for an additional seven years. The rent payments on the GRIC lease escalate each year until the end of the term.
Operating lease right-of-use assets and corresponding operating lease liabilities, net of deferred rent, represent 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 discount rate used upon adoption of ASC 842, “Leases,” in the calculation was the incremental borrowing rate on the revolving credit facility in 2019.
During the first quarter of 2020, the Company ceased use of the corporate headquarters leased offices and moved corporate employees to the GRIC during the second quarter of 2020. In addition, the lease liability and corresponding right-of-use 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 right-of-use assets totaling of $6.2 million at March 31, 2020.
In addition, during the first quarter of 2020, the Company recorded an impairment of the right-of-use assets totaling $7.4 million. See Note 11, “Impairment of Fixed, Long-lived and Intangible 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 corporate 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.
The components of lease expense and supplemental cash flow information are as follows (in thousands):
For the years ended
December 31,
20202019
Operating lease expense$1,370 $2,609 
Finance lease expense:
Amortization of right-of-use assets17 1,237 
Interest on lease liabilities18 10 
Total finance lease expense35 1,247 
Short-term lease expense202 123 
Total lease expense$1,607 $3,979 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$2,884 $2,336 
Operating cash flows from finance leases18 10 
Financing cash flows from finance leases70 51 


Maturities of lease liabilities are as follows (in thousands):
Years ending December 31,Operating LeasesFinance Leases
2021$1,367 $69 
20221,289 46 
20231,317 39 
20241,347 23 
20251,347 — 
Thereafter6,865 — 
Total lease payments13,532 177 
Less: Interest(4,548)(21)
Present value of lease liabilities$8,984 $156 
Supplemental balance sheet information related to leases is as follows for the years ended December 31 (in thousands):
20202019
Operating Leases
Operating lease right-of-use assets$2,320 $16,388 
Current portion of operating lease liabilities$636 $486 
Long-term operating lease liabilities8,348 16,973 
Total operating lease liabilities$8,984 $17,459 
Finance Leases
Property and equipment$147 $293 
Accumulated depreciation(26)(28)
Property and equipment, net$121 $265 
Current portion of finance lease liabilities$60 $55 
Long-term finance lease liabilities96 158 
Total finance lease liabilities$156 $213 
Weighted Average Remaining Lease Term
Operating leases9.9 years16.6 years
Finance leases3.1 years4.6 years
Weighted Average Discount Rate
Operating leases8.9 %8.9 %
Finance leases9.0 %9.0 %
Rent expense under operating leases totaled $1.6 million for the year ended December 31, 2020, and $2.9 million for the year ended December 31, 2019.