Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

Leases

Lessee

We have operating leases for office and retail spaces, vehicles and office equipment.

The supplemental balance sheet information for our operating leases consist of following (in thousands):

Balance Sheet Location	September 30, 2019
Operating lease right-of-use assets, net	$	53,923
Accrued liabilities	$	13,706
Operating lease liabilities	43,365
Total operating lease liabilities	$	57,071

The components of lease expenses consist of following (in thousands):

Lease Cost	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost 1	$	5,957	$	16,756
Variable lease cost	436		1,543
Total lease cost 2	$	6,393	$	18,299

¹   Includes short-term lease expense which are not material for the periods.

²   Included in operating expenses within our Condensed Consolidated Statement of Operations.

The following table provides a summary of our operating lease terms and discount rates:

Remaining Lease Term and Discount Rate	September 30, 2019
Weighted average remaining lease term (in years)	5.9
Weighted average discount rate	4.2	%

Maturities of operating lease liabilities as of September 30, 2019 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Leases
Remainder of 2019	$	3,957
2020	17,934
2021	15,990
2022	10,454
2023	7,014
Thereafter	7,076
Total lease payments	$	62,425
Less: Interest	(5,354		)
Total lease liabilities	$	57,071

As of September 30, 2019, we had additional operating leases that have not yet commenced of $9.6 million. These operating leases will commence between the remainder of fiscal year 2019 through 2021 with lease terms of 2 years to 4 years.

Minimum future lease payments previously disclosed under ASC 840 in our Annual Report on Form 10-K for the year ended December 31, 2018 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Leases
2019	$	21,429
2020	20,483
2021	18,897
2022	15,096
2023	12,400
Thereafter	18,371
Total minimum lease payments	$	106,676

Lessor

In April 2019, as part of the purchase of a building located in Morrisville, North Carolina, we assumed an existing lease with a third-party for a portion of the building which is classified as an operating lease.

Lease payments due to Align as of September 30, 2019 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Lease
Remainder of 2019	$	212
2020	859
2021	1,145
2022	1,199
2023	1,229
Thereafter	7,441
Total minimum lease payments	$	12,085

For the three and nine months ended September 30, 2019, operating lease income was not material.

Leases

Leases

Lessee

We have operating leases for office and retail spaces, vehicles and office equipment.

The supplemental balance sheet information for our operating leases consist of following (in thousands):

Balance Sheet Location	September 30, 2019
Operating lease right-of-use assets, net	$	53,923
Accrued liabilities	$	13,706
Operating lease liabilities	43,365
Total operating lease liabilities	$	57,071

The components of lease expenses consist of following (in thousands):

Lease Cost	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Operating lease cost 1	$	5,957	$	16,756
Variable lease cost	436		1,543
Total lease cost 2	$	6,393	$	18,299

¹   Includes short-term lease expense which are not material for the periods.

²   Included in operating expenses within our Condensed Consolidated Statement of Operations.

The following table provides a summary of our operating lease terms and discount rates:

Remaining Lease Term and Discount Rate	September 30, 2019
Weighted average remaining lease term (in years)	5.9
Weighted average discount rate	4.2	%

Maturities of operating lease liabilities as of September 30, 2019 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Leases
Remainder of 2019	$	3,957
2020	17,934
2021	15,990
2022	10,454
2023	7,014
Thereafter	7,076
Total lease payments	$	62,425
Less: Interest	(5,354		)
Total lease liabilities	$	57,071

As of September 30, 2019, we had additional operating leases that have not yet commenced of $9.6 million. These operating leases will commence between the remainder of fiscal year 2019 through 2021 with lease terms of 2 years to 4 years.

Minimum future lease payments previously disclosed under ASC 840 in our Annual Report on Form 10-K for the year ended December 31, 2018 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Leases
2019	$	21,429
2020	20,483
2021	18,897
2022	15,096
2023	12,400
Thereafter	18,371
Total minimum lease payments	$	106,676

Lessor

In April 2019, as part of the purchase of a building located in Morrisville, North Carolina, we assumed an existing lease with a third-party for a portion of the building which is classified as an operating lease.

Lease payments due to Align as of September 30, 2019 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Lease
Remainder of 2019	$	212
2020	859
2021	1,145
2022	1,199
2023	1,229
Thereafter	7,441
Total minimum lease payments	$	12,085

For the three and nine months ended September 30, 2019, operating lease income was not material.