XML 28 R17.htm IDEA: XBRL DOCUMENT v3.19.2
Leases
 6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
Leases Leases
Lease Obligations
We determine if an arrangement is a lease at inception. Operating lease ROU assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Additionally, we use the portfolio approach in determining the discount rate used to present value lease payments. We give consideration to our line of credit as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. The ROU asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives.
We have operating and finance leases for office space and certain equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning on or after January 1, 2019, we account for lease components separately from non-lease components for all asset classes.
Our leases have remaining terms of less than 1 to 4 years, some of which include one or more options to renew for up to 2 years, and some of which include options to terminate the leases within 1 year. The exercise of lease renewal options is at our sole discretion and such options are included in ROU assets and liabilities for renewal periods that are reasonably certain of exercise. Certain of our lease agreements include stated rental payment escalations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We sublease certain real estate to third parties. Finance leases as of June 30, 2019 were immaterial.
Leases (in thousands)
 
Classification
 
June 30, 2019
Assets
 
 
 
 
Operating lease assets
 
Other assets
 
$
10,770

Liabilities
 
 
 
 
Current
 
 
 
 
Operating
 
Other current liabilities
 
$
3,814

Noncurrent
 
 
 
 
Operating
 
Other long-term liabilities
 
8,013

Total lease liabilities
 
 
 
$
11,827


The components of lease expense were as follows (in thousands):
 
 
Classification
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
Operating lease expense (1)
 
Sales, general and administrative expenses (2)
 
$
1,137

 
$
2,154

Sublease income
 
Other income
 
(95
)
 
(137
)
Net lease expense
 
 
 
$
1,042

 
$
2,017

(1) Includes short-term leases, which are immaterial.
(2) An immaterial portion of operating lease expense is included within research and development expenses and cost of sales.
Other information related to leases was as follows (in thousands, except lease term and discount rate):
 
 
Six Months Ended June 30, 2019
Supplemental Cash Flows Information
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 
$
2,017

Right-of-use assets obtained in exchange for lease liabilities:
 
 
Operating leases
 
84

Weighted average remaining lease term:
 
 
Operating leases
 
3.5 years

Weighted average discount rate:
 
 
Operating leases
 
3.6
%

Future minimum lease payments under non-cancellable leases as of June 30, 2019 were as follows (in thousands):
 
Operating
 
Sublease income
 
Net
2019 Remaining
$
2,248

 
$
(164
)
 
$
2,084

2020
4,224

 
(82
)
 
4,142

2021
3,340

 
—

 
3,340

2022
2,409

 
—

 
2,409

2023
1,173

 
—

 
1,173

2024
—

 
—

 
—

Thereafter
—

 
—

 
—

Total minimum lease payments
13,394

 
(246
)
 
13,148

Less: Amount representing interest
 
 
 
 
(1,321
)
Present value of lease payments
 
 
 
 
$
11,827


As of June 30, 2019, we do not have any leases that have not yet commenced other than the land lease purchase agreement described in Note 12.

Disclosures related to periods prior to adoption of Topic 842
Rent expense under all operating leases, including both cancelable and non-cancelable leases, was $4.2 million and $2.9 million for the years ended December 31, 2018 and 2017, respectively.
Future minimum lease payments under non-cancelable leases at December 31, 2018, were as follows (in thousands):
 
Operating
 
Capital
2019
$
3,670

 
$
40

2020
3,572

 
36

2021
2,961

 
—

2022
2,001

 
—

2023
573

 
—

Thereafter
—

 
—

Total minimum lease payments
$
12,777

 
76

Less: Amount representing interest
 
 
(6
)
Capital lease obligation
 
 
$
70
Leases Leases
Lease Obligations
We determine if an arrangement is a lease at inception. Operating lease ROU assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Additionally, we use the portfolio approach in determining the discount rate used to present value lease payments. We give consideration to our line of credit as well as publicly available data for instruments with similar characteristics when calculating our incremental borrowing rates. The ROU asset also includes any lease payments made and initial direct costs incurred and excludes lease incentives.
We have operating and finance leases for office space and certain equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. For leases beginning on or after January 1, 2019, we account for lease components separately from non-lease components for all asset classes.
Our leases have remaining terms of less than 1 to 4 years, some of which include one or more options to renew for up to 2 years, and some of which include options to terminate the leases within 1 year. The exercise of lease renewal options is at our sole discretion and such options are included in ROU assets and liabilities for renewal periods that are reasonably certain of exercise. Certain of our lease agreements include stated rental payment escalations. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We sublease certain real estate to third parties. Finance leases as of June 30, 2019 were immaterial.
Leases (in thousands)
 
Classification
 
June 30, 2019
Assets
 
 
 
 
Operating lease assets
 
Other assets
 
$
10,770

Liabilities
 
 
 
 
Current
 
 
 
 
Operating
 
Other current liabilities
 
$
3,814

Noncurrent
 
 
 
 
Operating
 
Other long-term liabilities
 
8,013

Total lease liabilities
 
 
 
$
11,827


The components of lease expense were as follows (in thousands):
 
 
Classification
 
Three Months Ended June 30, 2019
 
Six Months Ended June 30, 2019
Operating lease expense (1)
 
Sales, general and administrative expenses (2)
 
$
1,137

 
$
2,154

Sublease income
 
Other income
 
(95
)
 
(137
)
Net lease expense
 
 
 
$
1,042

 
$
2,017

(1) Includes short-term leases, which are immaterial.
(2) An immaterial portion of operating lease expense is included within research and development expenses and cost of sales.
Other information related to leases was as follows (in thousands, except lease term and discount rate):
 
 
Six Months Ended June 30, 2019
Supplemental Cash Flows Information
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 
$
2,017

Right-of-use assets obtained in exchange for lease liabilities:
 
 
Operating leases
 
84

Weighted average remaining lease term:
 
 
Operating leases
 
3.5 years

Weighted average discount rate:
 
 
Operating leases
 
3.6
%

Future minimum lease payments under non-cancellable leases as of June 30, 2019 were as follows (in thousands):
 
Operating
 
Sublease income
 
Net
2019 Remaining
$
2,248

 
$
(164
)
 
$
2,084

2020
4,224

 
(82
)
 
4,142

2021
3,340

 
—

 
3,340

2022
2,409

 
—

 
2,409

2023
1,173

 
—

 
1,173

2024
—

 
—

 
—

Thereafter
—

 
—

 
—

Total minimum lease payments
13,394

 
(246
)
 
13,148

Less: Amount representing interest
 
 
 
 
(1,321
)
Present value of lease payments
 
 
 
 
$
11,827


As of June 30, 2019, we do not have any leases that have not yet commenced other than the land lease purchase agreement described in Note 12.

Disclosures related to periods prior to adoption of Topic 842
Rent expense under all operating leases, including both cancelable and non-cancelable leases, was $4.2 million and $2.9 million for the years ended December 31, 2018 and 2017, respectively.
Future minimum lease payments under non-cancelable leases at December 31, 2018, were as follows (in thousands):
 
Operating
 
Capital
2019
$
3,670

 
$
40

2020
3,572

 
36

2021
2,961

 
—

2022
2,001

 
—

2023
573

 
—

Thereafter
—

 
—

Total minimum lease payments
$
12,777

 
76

Less: Amount representing interest
 
 
(6
)
Capital lease obligation
 
 
$
70