We determine if an arrangement is a lease at inception. Operating lease right-of-use (“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 estimated 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 estimating 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 approximately 7 years, some of which include one or more options to renew for up to 5 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 December 31, 2020 were immaterial.

(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):


	Twelve Months Ended			Twelve Months Ended
	December 31, 2020			December 31, 2019
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	4,666		$	4,374
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases		17,390			888
Weighted average remaining lease term:
Operating leases		4.4	years		3.1	years
Weighted average discount rate:
Operating leases		3.36	%		3.55	%

Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows (in thousands):


	Operating
2021		6,277
2022		6,178
2023		5,891
2024		4,009
2025		3,851
Thereafter		203
Total minimum lease payments		26,409
Less: Amount representing interest		(2,026)
Present value of lease payments	$	24,383

As of December 31, 2020, we do not have any leases that have not yet commenced that create significant rights and obligations for us.