Leases Leases

12 Months Ended

Dec. 31, 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 Caption	December 31, 2019
Operating lease right-of-use assets, net	$	56,244
Accrued liabilities	$	15,737
Operating lease liabilities	43,463
Total operating lease liabilities	$	59,200

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

Lease Cost	Year Ended December 31, 2019
Operating lease cost 1	$	22,778
Variable lease cost	1,899
Total lease cost	$	24,677

¹   Includes short-term lease expense which is not material.

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

Remaining Lease Term and Discount Rate	December 31, 2019
Weighted average remaining lease term (in years)	5.7
Weighted average discount rate	4.1	%

Maturities of operating lease liabilities as of December 31, 2019 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Leases
2020	$	18,354
2021	18,057
2022	11,847
2023	8,177
2024	2,595
Thereafter	5,453
Total lease payments	$	64,483
Less: Interest	(5,283		)
Total lease liabilities	$	59,200

As of December 31, 2019, we had additional operating leases that have not yet commenced of $7.9 million. These operating leases will commence between 2020 through 2021 with lease terms of 2 years to 4 years.

Minimum future lease payments previously disclosed under ASC 840 in our Notes to Consolidated Financial Statements included 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 $56.0 million purchase of a building located in Raleigh, North Carolina, we assumed an existing lease with a third-party for one floor of the building which is classified as an operating lease. The lease has annual escalating payments and expires in August 2029 in accordance with the terms and conditions of the existing agreement.

Lease payments due to Align as of December 31, 2019 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Lease
2020	$	858
2021	1,145
2022	1,199
2023	1,229
2024	1,259
Thereafter	6,182
Total minimum lease payments	$	11,872

For the year ended December 31, 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 Caption	December 31, 2019
Operating lease right-of-use assets, net	$	56,244
Accrued liabilities	$	15,737
Operating lease liabilities	43,463
Total operating lease liabilities	$	59,200

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

Lease Cost	Year Ended December 31, 2019
Operating lease cost 1	$	22,778
Variable lease cost	1,899
Total lease cost	$	24,677

¹   Includes short-term lease expense which is not material.

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

Remaining Lease Term and Discount Rate	December 31, 2019
Weighted average remaining lease term (in years)	5.7
Weighted average discount rate	4.1	%

Maturities of operating lease liabilities as of December 31, 2019 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Leases
2020	$	18,354
2021	18,057
2022	11,847
2023	8,177
2024	2,595
Thereafter	5,453
Total lease payments	$	64,483
Less: Interest	(5,283		)
Total lease liabilities	$	59,200

As of December 31, 2019, we had additional operating leases that have not yet commenced of $7.9 million. These operating leases will commence between 2020 through 2021 with lease terms of 2 years to 4 years.

Minimum future lease payments previously disclosed under ASC 840 in our Notes to Consolidated Financial Statements included 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 $56.0 million purchase of a building located in Raleigh, North Carolina, we assumed an existing lease with a third-party for one floor of the building which is classified as an operating lease. The lease has annual escalating payments and expires in August 2029 in accordance with the terms and conditions of the existing agreement.

Lease payments due to Align as of December 31, 2019 are as follows (in thousands):

Fiscal Year Ending December 31,	Operating Lease
2020	$	858
2021	1,145
2022	1,199
2023	1,229
2024	1,259
Thereafter	6,182
Total minimum lease payments	$	11,872

For the year ended December 31, 2019, operating lease income was not material.