Note 10. Commitments and Contingencies.

Operating Leases.

We lease certain manufacturing facilities, warehouses, office space, and equipment under non-cancelable operating leases that expire at various times up to November 2033 and have options to renew most leases, with rentals to be negotiated. Certain of our leases contain provisions for rental adjustments. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date we take possession of the property. At lease inception, we determine the lease term by assuming the exercise of those renewal options that are reasonably assured. The exercise of lease renewal options is at our sole discretion. The lease term is used to determine whether a lease is financing or operating and is used to calculate straight-line rent expense. Additionally, the depreciable life of leasehold improvements is limited by the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

The following table reflects our lease assets and our lease liabilities at March 31, 2020 and December 31, 2019 (in thousands).


	March 31,		December 31,
	2020		2019
Assets:
Operating lease right-of-use assets	$	4,118	$	4,300

Liabilities:
Operating lease liabilities, current	$	1,266	$	1,230
Operating lease liabilities, non-current	$	4,400	$	4,726

Lease Costs:

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

As of March 31, 2020, the maturity of operating lease liabilities was as follows (in thousands):


(In thousands)
2020 (remaining 9 months)	$	1,512
2021		1,691
2022		1,552
2023		1,015
2024		221
Thereafter		1,954
Total lease payments		7,945
Less: Interest		(2,279)
Present value of lease liabilities	$	5,666

Lease Term and Discount Rate:


	March 31,
	2020
Weighted-average remaining lease term (in years)	7.3
Weighted-average discount rate	11.56	%

Other Information:

Supplemental cash flow information related to leases for the three months ended March 31, 2020 and 2019 was as follows (in thousands):


	Three Months Ended		Three Months Ended
	March 31, 2020		March 31, 2019
Operating cash outflows from operating leases	$	473	$	551
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	—

Purchase Commitments.

As of March 31, 2020, we had purchase commitments with our third-party foundries of $9.1 million due within one year.

Litigation.

We are subject to legal proceedings, claims and litigation, including intellectual property litigation, arising in the ordinary course of business. Such matters are subject to many uncertainties and outcomes and are not predictable with assurance. We accrue amounts that we believe are adequate to address any liabilities related to legal proceedings and other loss contingencies that we believe will result in a probable loss that is reasonably estimable.

Indemnification.

During the normal course of business, we may make certain indemnities, commitments and guarantees which may include intellectual property indemnities to certain of our customers in connection with the sales of our products and indemnities for liabilities associated with the infringement of other parties’ technology based upon our products. Our exposure under these indemnification provisions is generally limited to the total amount paid by a customer under the agreement. However, certain agreements include indemnification provisions that could potentially expose us to losses in excess of the amount received under the agreement. In addition, we indemnify our officers, directors and certain key employees while they are serving in good faith in such capacities.

We have not recorded any liability for these indemnities, commitments and guarantees in the accompanying condensed consolidated balance sheets. Where necessary, we accrue for losses for any known contingent liabilities, including those that may arise from indemnification provisions, when future payment is probable.

Three Months Ended

Operating lease cost