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Leases
9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases

Note 5. Leases

The Company leases real estate property under operating leases. The Company was also a lessee and a sublessor from an accounting perspective for its Santa Clara lease through March 31, 2019. The Company also leases office space in Michigan, Malaysia, Japan, the Netherlands, and Ukraine all under non-cancellable operating leases with various expiration dates through December 2026. The remaining lease terms vary from a few months to 6 years. For its leases the Company has options to extend the lease term for periods varying from one to five years. These renewal options are not considered in the remaining lease term unless it is reasonably certain that the Company will exercise such options. The Company also has variable lease payments that are primarily comprised of common area maintenance and utility charges.

As of September 30, 2020, the Company did not have any leases that had not yet commenced.

The table below presents the lease-related assets and liabilities recorded on the consolidated balance sheet as of September 30, 2020:

 

 

 

As of

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

(in thousands)

 

Right-of-use assets

 

$

9,220

 

 

$

9,790

 

Lease liabilities included in accrued expenses and other current liabilities

 

 

1,243

 

 

 

1,874

 

Lease liabilities - non-current

 

 

7,309

 

 

 

7,940

 

Total operating lease liabilities

 

$

8,552

 

 

$

9,814

 

Weighted-average remaining lease term (years)

 

 

6.1

 

 

 

7.1

 

Weighted-average discount rate

 

 

4.2

%

 

 

4.1

%

 

The table below presents certain information related to the lease costs for operating leases for the three and nine months ended September 30, 2020 and 2019:

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

Operating lease cost

 

$

418

 

 

$

352

 

 

$

1,269

 

 

$

1,006

 

Short-term lease cost

 

 

88

 

 

 

93

 

 

 

253

 

 

 

221

 

Variable lease cost

 

 

37

 

 

 

225

 

 

 

193

 

 

 

390

 

Total lease cost

 

$

543

 

 

$

670

 

 

$

1,715

 

 

$

1,617

 

 

Cash paid for operating lease liabilities was $0.3 million, $1.9 million, $2.0 million and $2.7 million, respectively for the three and nine months ended September 30, 2020 and 2019. The cash paid for three and nine months ended September 30, 2019, includes $1.6 million of prepaid lease payments. The Company sub-leased a portion of its Santa Clara facility through March 31, 2019 and received $0.1 million in sub-lease income for the nine months ended September 30, 2019, which was included in the short-term lease cost above.

Undiscounted Cash Flows

The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the consolidated balance sheet as of September 30, 2020: 

 

 

 

(in thousands)

 

2020

 

$

275

 

2021

 

 

1,567

 

2022

 

 

1,595

 

2023

 

 

1,489

 

2024

 

 

1,532

 

2025 and beyond

 

 

3,194

 

Total minimum lease payments

 

 

9,652

 

Less: amount of lease payments representing interest

 

 

(1,100

)

Present value of future minimum lease payments

 

 

8,552

 

Less: current obligations under leases

 

 

(1,243

)

Long-term lease liabilities

 

$

7,309