(

)

LEASES

As previously discussed in Note

we account for our leases in accordance with the guidance in ASC

842,

which was effective for us as of

January 1, 2019.

In connection with the implementation of ASC

842,

we recorded non-cash increases in operating lease liabilities and ROU assets of

$5,197

and

$4,816,

respectively, as of the effective date of this guidance.

We lease our offices, warehouse facilities and certain equipment under non-cancellable operating leases that expire at various dates through

2028.

Total operating lease and short-term lease costs for the

three

and

nine

months ended

September 30, 2019

and

2018,

respectively, were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018

Operating lease cost	$	370	$	307	$	1,106	$	1,142
Short-term lease cost	$	12	$	14	$	39	$	41

The following is additional information about our leases as of

September 30, 2019:

Range of remaining lease terms (in years)	1.1	to	8.7
Weighted average remaining lease term (in years)			5.6
Weighted average discount rate			5.0	%

Supplemental cash flow information related to leases for the

nine

months ended

September 30, 2019

was as follows:

Non-cash increases (decreases) in operating lease liabilities and ROU assets as a result of lease modifications:
Modification to Ambrell’s U.K. facility lease	$	(486	)
Modification to lease for facility in Mansfield, Massachusetts	$	1,811
Modification to Ambrell’s Netherlands facility lease	$	(48	)

The lease for Ambrell’s U.K. facility had an original term of

years, which extended through

August 2029.

The lease included the option to terminate the lease at specified points in time without penalty. We exercised this option in

March 2019,

and the lease expired in

September 2019.

At the effective date of this modification, we recorded a reduction in our ROU assets and operating lease liabilities of approximately

$486.

April 8, 2019,

we executed an amendment to the lease for our facility in Mansfield, Massachusetts that extended the term of the lease for an additional

forty

months to

December 31, 2024

and expanded the amount of leased space by approximately

6,100

square feet. The current rate per square foot that is in place through

August 31, 2021 (

the original expiration date of the lease) did

not

change. After

August 31, 2021,

there are predetermined fixed escalations of the rate as outlined in the amendment. As a result of this modification, we recorded an increase in our ROU assets and operating lease liabilities of approximately

$1,811.

During the

third

quarter of

2019,

the lease for a portion of Ambrell’s facility in the Netherlands was modified to reduce the term of that lease to expire in

September 2019

as that portion of the space was

longer needed. At the effective date of this modification, we recorded a reduction in our ROU assets and operating lease liabilities of approximately

$48.

Maturities of lease liabilities as of

September 30, 2019

were as follows:

2019 (remainder)	$	384
2020		1,525
2021		1,006
2022		824
2023		834
Thereafter		1,626
Total lease payments	$	6,199
Less imputed interest		(787	)
Total	$	5,412