LEASES

9 Months Ended

Sep. 30, 2019

The Company has non-cancelable operating leases for its office and laboratory facilities, automobiles used by its sales force, and certain operating leases for office equipment.

The Company relocated its corporate headquarters from Newark, California to Lake Forest, Illinois in 2018 and subsequently entered into two subleases which, together, account for the entirety of the Newark facility. Each sublease contains abated rent periods resulting in reduced operating lease cash flows through May 2019. Operating lease costs and sublease income related to the Newark facility are accounted for in Other (expense) income, net in the Condensed Consolidated Statements of Comprehensive Income. The Company has the right to renew the term of the Lake Forest lease for one period of five years, provided that written notice is made to the Landlord no later than twelve months prior to the expiration of the initial term of the Lease.

Lease expense during the period included the following (in thousands):



		Three months ended		Nine months ended
	Financial Statement Classification	September 30, 2019		September 30, 2019
Operating lease cost	Selling, general and administrative expenses	$	175	$	540
Operating lease cost	Other (expense) income, net	148		443
Total lease cost		$	323	$	983

Sublease Income	Other (expense) income, net	$	362	$	1,085

Supplemental cash flow and other information related to leases were as follows (in thousands):



	Three months ended		Nine months ended
	September 30, 2019		September 30, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	620	1,819

Supplemental balance sheet information related to leases consisted of the following (in thousands):



	Financial Statement Classification	September 30, 2019
Assets
Operating lease right-of-use assets	Other long-term assets	$	2,999
Liabilities
Current operating lease liabilities	Other current liabilities	$	2,097
Noncurrent operating lease liabilities	Other long term liabilities	5,341
Total lease liabilities		$	7,438

Maturity of lease liabilities as of September 30, 2019 were as follows (in thousands):



	Operating Leases
2019 (remainder)	$	627
2020	2,431
2021	2,323
2022	2,188
2023	632
Thereafter	—
Total lease payments	$	8,201
Less: Interest	763
Present value of lease liabilities	$	7,438

Lease term and discount rate consisted of the following:



	September 30, 2019
Weighted-average remaining lease term (years):
Operating leases	3.4
Weighted-average discount rate:
Operating leases	6.0	%

Future minimum lease payments under the Company's non-cancelable operating leases as of December 31, 2018 were as follows (in thousands):



	Lease Payments
2019	$	2,624
2020	2,526
2021	2,322
2022	2,188
2023	632
Thereafter	—
Total	$	10,292

LEASES