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Leases

6 Months Ended

Jun. 30, 2020

The Company leases office, warehouse and manufacturing space and certain equipment under non-cancelable operating lease agreements that generally require us to pay maintenance, insurance, taxes and other expenses in addition to annual rental fees. Our leases have remaining lease terms of one year to nine years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within nine years.

The components of lease expense are as follows:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease cost	$	2,562	$	1,877	$	5,028	$	3,447
Finance lease cost
Amortization of right-of-use assets	101		80		190		160
Interest on lease liabilities	11		15		23		30
Total finance lease cost	112		95		213		190
Short-term lease cost¹	1,037		1,773		2,066		3,764
Total lease expense	$	3,711	$	3,745	$	7,307	$	7,401

^1.Includes variable lease costs, which are not significant

Supplemental cash flow information related to leases is as follows:



	Six Months Ended June 30, 2020		Six Months Ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,036	$	3,245

Financing cash flows from finance leases	$	239	$	222

Supplemental balance sheet information related to leases is as follows:


	Balance Sheet Location	June 30, 2020			December 31, 2019
Operating Leases
Right-of-use assets, net	Operating lease right-of-use assets, net	$	31,172		$	34,960

Current liabilities	Current operating lease liabilities	8,274			7,620
Non-current liabilities	Operating lease liabilities	25,176			29,414
Total operating lease liabilities		$	33,450		$	37,034

Finance Leases ¹
Right-of-use assets		$	1,414		$	1,135
Accumulated depreciation		(479)			(343)
Right-of-use assets, net	Other assets, net	935			792

Current liabilities	Accrued liabilities and other	329			354
Non-current liabilities	Other long-term liabilities	538			398
Total finance lease liabilities		$	867		$	752

Weighted Average Remaining Lease Term
Operating leases		5.0 years			5.0 years
Finance leases		3.7 years			2.8 years
Weighted Average Discount Rate
Operating leases		8.5		%	9.1		%
Finance leases		5.3		%	7.2		%

^1.Note that all new Financing leases added during the six months ended June 30, 2020 were executed before the loan amendment discussed in Note 14, or May 11, 2020.

Right-of-use Assets Impairment. The impairment of an operating lease right-of-use asset of $0.4 million was recorded for the first quarter ended March 31, 2020. The impairment charge is presented in impairment expense in the Condensed Consolidated Statements of Operations.

As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments, which is reflective of the specific term of the leases and economic environment of each geographic region, and apply a portfolio approach for certain machinery and equipment that have consistent terms in a specific geographic region.

Anticipated future lease costs, which are based in part on certain assumptions to approximate minimum annual rental commitments under non-cancelable leases, are as follows:


Year Ending December 31,	Operating		Financing		Total
2020 ¹	$	5,506	$	196	$	5,702
2021	9,679		304		9,983
2022	8,674		186		8,860
2023	5,157		122		5,279
2024	4,015		78		4,093
Thereafter	7,205		43		7,248
Total lease payments	40,236		929		41,165
Less: Imputed interest	(6,786)		(62)		(6,848)
Present value of lease liabilities	$	33,450	$	867	$	34,317

¹Excluding the six months ended June 30, 2020.

Leases