LEASES

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

LEASES

LEASES

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, CA 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 income, net in the 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):

		Year ended December 31, 2019
	Financial Statement Classification
Operating lease cost	Selling, general and administrative expenses	$	718
Operating lease cost	Other income, net	591
Total lease cost		$	1,309
Sublease Income	Other income, net	$	1,386

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

	Year ended December 31, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	2,446

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

	Financial Statement Classification	December 31, 2019
Assets
Operating lease right-of-use assets	Other long-term assets	$	2,776
Liabilities
Current operating lease liabilities	Other current liabilities	$	2,094
Noncurrent operating lease liabilities	Other long term liabilities	4,820
Total lease liabilities		$	6,914

Maturity of lease liabilities as of December 31, 2019 (in thousands):

	Operating Leases
2020	$	2,431
2021	2,323
2022	2,188
Thereafter	632
Total lease payments	$	7,574
Less: Interest	660
Present value of lease liabilities	$	6,914

Future undiscounted cash flows to be received from subleases is expected to be approximately $1.7 million on an annual basis in 2020, 2021, and 2022.

Lease term and discount rate consisted of the following:

	December 31, 2019
Weighted-average remaining lease term (years):
Operating leases	3.2
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

LEASES

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, CA 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 income, net in the 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):

		Year ended December 31, 2019
	Financial Statement Classification
Operating lease cost	Selling, general and administrative expenses	$	718
Operating lease cost	Other income, net	591
Total lease cost		$	1,309
Sublease Income	Other income, net	$	1,386

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

	Year ended December 31, 2019
Cash paid for amounts included in measurement of liabilities:
Operating cash flows from operating leases	$	2,446

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

	Financial Statement Classification	December 31, 2019
Assets
Operating lease right-of-use assets	Other long-term assets	$	2,776
Liabilities
Current operating lease liabilities	Other current liabilities	$	2,094
Noncurrent operating lease liabilities	Other long term liabilities	4,820
Total lease liabilities		$	6,914

Maturity of lease liabilities as of December 31, 2019 (in thousands):

	Operating Leases
2020	$	2,431
2021	2,323
2022	2,188
Thereafter	632
Total lease payments	$	7,574
Less: Interest	660
Present value of lease liabilities	$	6,914

Future undiscounted cash flows to be received from subleases is expected to be approximately $1.7 million on an annual basis in 2020, 2021, and 2022.

Lease term and discount rate consisted of the following:

	December 31, 2019
Weighted-average remaining lease term (years):
Operating leases	3.2
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