COMMITMENTS AND CONTINGENT LIABILITIES

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Operating Leases

The Company leases office facilities under noncancelable operating leases that expire on various dates through 2028, some of which may include options to extend the leases for up to 12 years.

The components of lease expense are presented as follows:



	Year Ended December 31, 2019
	(In thousands)
Operating lease costs	$	4,041

The components of lease liabilities are presented as follows:



	December 31, 2019
	(In thousands)
Operating lease liabilities, current (Accrued liabilities)	$	3,170
Operating lease liabilities, noncurrent (Other liabilities)	9,542
Total operating lease liabilities	$	12,712

Supplemental lease information:
Weighted average remaining lease term	5.5 years
Weighted average discount rate	8.6%

Supplemental cash flow and other information related to operating leases, are as follows:



	Year Ended December 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,636

Non-cash investing activities:
Lease liabilities arising from obtaining right-of-use assets	$	4,834

Undiscounted cash flows of operating lease liabilities as of December 31, 2019 are as follows:



	Lease Amounts
	(In thousands)
Year:
2020	$	4,156
2021	4,238
2022	2,927
2023	2,188
2024	921
2025 and thereafter	740
Total lease payments	15,170
Less: imputed lease interest	(2,458		)
Total lease liabilities	$	12,712

As previously disclosed in the Company’s Annual Report on Form 10-K and under the previous lease accounting standard ASC 840, “Leases,” the aggregate future minimum lease payments under the Company’s noncancelable operating leases, as of December 31, 2018, are as follows:



	Lease Amounts
	(In thousands)
Year:
2019	$	3,738
2020	3,532
2021	3,276
2022	1,810
2023	945
Thereafter	1,252
Total	14,553
Sublease income to be recognized in the future under noncancelable subleases	(922		)
Net operating lease minimum payments	$	13,631

Purchase Obligations

The Company has contractual obligations related to component inventory that its primary contract manufacturer procures on its behalf in accordance with its production forecast as well as other inventory related purchase commitments. As of December 31, 2019, these purchase obligations totaled approximately $99.5 million.

Letter of Credits

As of December 31, 2019, we had a standby letter of credit in the aggregate amount of $44.7 million, primarily in connection with one of our customer contracts. The letter of credit serves as a performance security for product delivery to the customer in 2020 and will expire April 30, 2020. The Company has collateralized under the letter of credit a certificate of deposit of $44.7 million. No amounts have been drawn against this letter of credit. Further information relating to the letter of credit may be found in Note 3, “Revenue Recognition,” of the notes to consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K.

Litigation

From time-to-time, the Company may be involved in litigation relating to claims arising out of its operations. The Company is not currently involved in any material legal proceedings; however, the Company may be involved in material legal proceedings in the future. Such matters are subject to uncertainty and there can be no assurance that such legal proceedings will not have a material effect on its business, results of operations, financial position or cash flows.