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Leases

9 Months Ended

Sep. 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 eight 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Operating lease cost 1	$	3,665	$	1,858	$	8,693	$	5,305
Finance lease cost
Amortization of right-of-use assets	110		92		300		252
Interest on lease liabilities	11		16		34		46
Total finance lease cost	121		108		334		298
Short-term lease cost 2	922		1,793		2,988		5,557
Total lease expense	$	4,708	$	3,759	$	12,015	$	11,160

1.The Company recognized accelerated lease costs of $1.1 million during the three months ended September 30, 2020 related to the corporate research and development center.

2.Includes variable lease costs, which are not significant

Supplemental cash flow information related to leases is as follows:



	Nine Months Ended September 30, 2020		Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating leases	$	7,806	$	5,200

Financing leases	$	339	$	331

Supplemental balance sheet information related to leases is as follows:


	Balance Sheet Location	September 30, 2020			December 31, 2019
Operating Leases
Right-of-use assets, net	Operating lease right-of-use assets, net	$	31,107		$	34,960

Current liabilities	Current operating lease liabilities	8,874			7,620
Non-current liabilities	Operating lease liabilities	25,135			29,414
Total operating lease liabilities		$	34,009		$	37,034

Finance Leases 1
Right-of-use assets		$	1,451		$	1,135
Accumulated depreciation		(595)			(343)
Right-of-use assets, net	Other assets, net	856			792

Current liabilities	Accrued liabilities and other	316			354
Non-current liabilities	Other long-term liabilities	486			398
Total finance lease liabilities		$	802		$	752

Weighted Average Remaining Lease Term
Operating leases		4.7 years			5.0 years
Finance leases		3.3 years			2.8 years
Weighted Average Discount Rate
Operating leases		8.1		%	9.1		%
Finance leases		5.2		%	7.2		%

1.Note that all new Financing leases added during the nine months ended September 30, 2020 were executed before the loan amendment discussed in Note 14, Debt and Credit Facilities 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	$	3,186	$	100	$	3,286
2021	10,201		314		10,515
2022	9,190		194		9,384
2023	5,651		126		5,777
2024	4,463		79		4,542
Thereafter	7,628		42		7,670
Total lease payments	40,319		855		41,174
Less: Imputed interest	(6,310)		(53)		(6,363)
Present value of lease liabilities	$	34,009	$	802	$	34,811

1.Excluding the nine months ended September 30, 2020.

Leases