COMMITMENTS AND CONTINGENT LIABILITIES

3 Months Ended

Mar. 31, 2020

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:



	Three Months Ended March 31,
	2020		2019
	(In thousands)
Operating lease costs	$	1,222	$	499

The components of lease liabilities are presented as follows:



	March 31, 2020		December 31, 2019
	(In thousands)
Operating lease liabilities, current (Accrued liabilities)	$	3,511	$	3,170
Operating lease liabilities, noncurrent (Other liabilities)	10,972		9,542
Total operating lease liabilities	$	14,483	$	12,712

Supplemental lease information:
Weighted average remaining lease term	5.6 years		5.5 years
Weighted average discount rate	8.3%		8.6%

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



	Three Months Ended March 31,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,014	$	737

Non-cash investing activities:
Lease liabilities arising from obtaining right-of-use assets	$	2,941	$	—

Undiscounted cash flows of operating lease liabilities as of March 31, 2020 are as follows:



	Lease Amounts
	(In thousands)
Year:
2020 (remaining nine months)	$	3,432
2021	4,651
2022	3,337
2023	2,619
2024	1,415
2025 and thereafter	1,902
Total lease payments	17,356
Less: imputed lease interest	(2,873		)
Total lease liabilities	$	14,483

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 March 31, 2020, these purchase obligations totaled approximately $95.6 million.

Letter of Credits

As of both March 31, 2020 and December 31, 2019, the Company had a standby letter of credit in the aggregate amount of $44.7 million, primarily in connection with one of its customer contracts. The letter of credit served as a performance security for product delivered to the customer during the three months ended March 31, 2020 and expired on April 30, 2020. The Company had collateralized under the letter of credit a certificate of deposit of $44.7 million. No amounts have been drawn against this letter of credit.

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.