Leases (Notes)

12 Months Ended

Dec. 31, 2020

The Company is obligated to make future minimum payments under four operating leases for 134,296 square feet of space used for manufacturing, research and development and general operations primarily in the greater Seattle area. The operating leases have terms that expire from 2026 to 2030 and include renewal options to extend the lease term at the then current fair market rental for each of the lease agreements. None of the options to extend the rental term of existing leases were considered reasonably certain as of December 31, 2020. The Company’s operating leases contain rent abatement periods, scheduled rent increases and provide for tenant improvement allowances. In addition, the Company enters into finance lease right-of-use assets, included in other assets, and lease liabilities, included in deferred revenues and other liabilities, primarily for equipment used in its operations. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants.

The following table provides the components of the Company’s lease cost (in thousands):


	2020		2019
Operating lease cost	$	5,354	$	6,004
Finance lease cost:
Amortization of right-of-use assets	138		—
Interest on lease liabilities	16		—
Total lease cost	$	5,508	$	6,004

Rent expense totaled approximately $4.9 million for the year ended December 31, 2018.

Other information related to leases for the year ended December 31 were as follows (in thousands):


	2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,160		$	5,579
Operating cash flows from finance leases	138			—
Financing cash flows from finance leases	135			—




Weighted average remaining lease term (years) - operating leases	5.8			6.7
Weighted average remaining lease term (years) - financing leases	2.4			N/A
Weighted average discount rate - operating leases	7.1		%	7.1		%
Weighted average discount rate - financing leases	4.8		%	N/A

Future minimum lease payments under the lease agreements as of December 31, 2020 were as follows (in thousands):


	Finance		Operating
2021	$	196	$	6,266
2022	196		6,327
2023	67		6,506
2024	16		6,690
2025	—		6,880
Thereafter	—		4,107
Total future minimum lease payments	475		36,776
Less: imputed interest	(28)		(6,860)
Total	$	447	$	29,916