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Leases
9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases

(13) Leases

The Company leases certain properties and buildings (including manufacturing facilities, warehouses, and office spaces) and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists of operating leases which expire at various dates through 2028.

In August 2020, the Company completed its relocation of its corporate headquarters from Alameda, California to Plano, Texas and established a new U.S.-based Engineering Center of Excellence in Plano. In September 2020, the Company entered into a lease agreement for additional office space at its headquarters in Plano, Texas. On the commencement date of this lease in March 2021, the Company recognized an aggregate of approximately $1.7 million in right-of-use assets and operating lease liabilities in connection with these leases.

During the nine months ended September 30, 2021, the Company recorded $4.2 million in impairment charges on the right-of-use assets, including $2.5 million related to the restructuring in Hanover, Germany and $1.7 million related to the headquarters relocation to Plano, Texas. See Note 9 Restructuring and Other Charges for further information about the Company's restructuring activities in Hanover, Germany.

The components of lease expense were as follows (in thousands):

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating lease cost

 

$

952

 

 

$

1,335

 

 

$

3,301

 

 

$

4,024

 

Short-term lease cost

 

 

382

 

 

 

252

 

 

 

1,146

 

 

 

752

 

Total net lease cost

 

$

1,334

 

 

$

1,587

 

 

$

4,447

 

 

$

4,776

 

Variable lease cost was not significant for the three and nine months ended September 30, 2021 and 2020.

Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands):

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Operating cash outflows from operating leases

 

$

1,923

 

 

$

1,357

 

 

$

4,690

 

 

$

3,903

 

Right-of-use assets obtained in exchange for operating lease obligations

 

 

409

 

 

 

 

 

 

2,283

 

 

 

1,364

 

 

The following table presents the weighted average remaining lease term and weighted average discount rates related to the Company’s operating leases as of September 30, 2021 and December 31, 2020, respectively (in thousands, excluding years and percentages):

 

 

 

September 30, 2021

 

 

December 31, 2020

 

Lease Assets and Liabilities

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

Right-of-use assets from operating leases

 

$

12,932

 

 

$

18,483

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

Operating lease liabilities - current

 

$

4,118

 

 

$

4,494

 

Operating lease liabilities - non-current

 

 

12,694

 

 

 

15,959

 

Total operating lease liabilities

 

$

16,812

 

 

$

20,453

 

Weighted average remaining lease term

 

4.4 years

 

 

4.6 years

 

Weighted average discount rate

 

 

5.5

%

 

 

5.7

%

 

 

The following table presents the maturity of the Company’s operating lease liabilities as of September 30, 2021 (in thousands):

 

Remainder of 2021

 

$

1,701

 

2022

 

 

4,877

 

2023

 

 

4,442

 

2024

 

 

3,866

 

2025

 

 

2,531

 

Thereafter

 

 

2,457

 

Total operating lease payments

 

 

19,874

 

Less: imputed interest

 

 

(3,062

)

Total operating lease liabilities

 

$

16,812