Leases

3 Months Ended

Mar. 31, 2020

The Company has obligations under lease arrangements primarily for facilities, equipment and vehicles. These leases have original lease periods expiring between March 2020 and August 2039. For the three months ended March 31, 2020 and 2019, the Company recorded lease expense for both periods of $1.8 million within Cost of sales, $0.1 million within Research, development, and engineering, $0.1 million within Selling, general and administrative and less than $0.1 million within Interest expense on the Consolidated Statements of Operations.

The following table summarizes the components of lease expense:



(in thousands)	For the Three Months Ended March 31,
	2020		2019
Operating lease cost	$	1,379	$	1,401
Finance lease cost
Amortization of right-of-use (“ROU”) asset	52		24
Interest expense	13		7
Short-term lease cost	110		143
Variable lease cost	423		455
Total lease cost	$	1,977	$	2,030

The following table presents supplemental cash flow information related to leases:



(in thousands)	For the Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	1,373	$	1,146
Operating cash flows paid for interest portion of finance leases	13		7
Financing cash flows paid for principal portion of finance leases	48		22
Right-of-use assets obtained in exchange for lease obligations
Operating leases	—		37
Finance leases	—		83

As of March 31, 2020 and December 31, 2019, the weighted-average remaining lease term was 6.6 years and 6.7 years for operating leases and 4.3 years and 4.5 years for finance leases, respectively. The weighted-average discount rate was 7.2% for operating leases and 6.8% for finance leases as of both March 31, 2020 and December 31, 2019. The following table presents supplemental balance sheet information related to leases:



(in thousands)	March 31, 2020		December 31, 2019
Operating lease ROU assets, net ¹	$	19,692	$	20,677

Operating lease liabilities, current ²	3,732		3,789
Operating lease liabilities, non-current ³	16,783		17,679
Total operating lease liabilities	$	20,515	$	21,468

Finance lease ROU assets, net ¹	$	695	$	777

Finance lease liabilities, current ²	189		195
Finance lease liabilities, non-current ³	576		617
Total finance lease liabilities	$	765	$	812


1.	Included in Other noncurrent assets for operating leases and Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.


2.	Included in Other accrued liabilities for operating leases and Current maturities of long-term debt for finance leases on the Consolidated Balance Sheets.


3.	Included in Other noncurrent liabilities for operating leases and Long-term debt, net of current maturities for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of March 31, 2020:



(in thousands)	Operating Leases		Finance Leases
Nine months ending December 31, 2020	$	3,852	$	182
Year ending December 31, 2021	4,841		243
Year ending December 31, 2022	4,680		175
Year ending December 31, 2023	3,247		101
Year ending December 31, 2024	1,813		82
Thereafter	7,389		96
Total undiscounted lease payments	25,822		879
Less: imputed interest	5,307		114
Total lease liabilities	$	20,515	$	765

Leases

The following table summarizes the components of lease expense:



(in thousands)	For the Three Months Ended March 31,
	2020		2019
Operating lease cost	$	1,379	$	1,401
Finance lease cost
Amortization of right-of-use (“ROU”) asset	52		24
Interest expense	13		7
Short-term lease cost	110		143
Variable lease cost	423		455
Total lease cost	$	1,977	$	2,030

The following table presents supplemental cash flow information related to leases:



(in thousands)	For the Three Months Ended March 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows paid for operating leases	$	1,373	$	1,146
Operating cash flows paid for interest portion of finance leases	13		7
Financing cash flows paid for principal portion of finance leases	48		22
Right-of-use assets obtained in exchange for lease obligations
Operating leases	—		37
Finance leases	—		83



(in thousands)	March 31, 2020		December 31, 2019
Operating lease ROU assets, net ¹	$	19,692	$	20,677

Operating lease liabilities, current ²	3,732		3,789
Operating lease liabilities, non-current ³	16,783		17,679
Total operating lease liabilities	$	20,515	$	21,468

Finance lease ROU assets, net ¹	$	695	$	777

Finance lease liabilities, current ²	189		195
Finance lease liabilities, non-current ³	576		617
Total finance lease liabilities	$	765	$	812


1.	Included in Other noncurrent assets for operating leases and Property, plant and equipment, net for finance leases on the Consolidated Balance Sheets.


2.	Included in Other accrued liabilities for operating leases and Current maturities of long-term debt for finance leases on the Consolidated Balance Sheets.


3.	Included in Other noncurrent liabilities for operating leases and Long-term debt, net of current maturities for finance leases on the Consolidated Balance Sheets.

The following table presents maturity analysis of lease liabilities as of March 31, 2020:



(in thousands)	Operating Leases		Finance Leases
Nine months ending December 31, 2020	$	3,852	$	182
Year ending December 31, 2021	4,841		243
Year ending December 31, 2022	4,680		175
Year ending December 31, 2023	3,247		101
Year ending December 31, 2024	1,813		82
Thereafter	7,389		96
Total undiscounted lease payments	25,822		879
Less: imputed interest	5,307		114
Total lease liabilities	$	20,515	$	765