. Lease commitments

The Company has operating leases for real estate and non-real estate in the United States, United Kingdom, China, Japan, and Korea. One such operating lease is a sublease for real estate. The Company does

not

have any material finance leases.

The Company leases office, storage/warehouse, laboratory and manufacturing space in Abingdon, U.K., which leases are due to expire at various dates from

June 11, 2019

June 18, 2033.

March

2013,

the Company signed a

five

year lease for its U.S. corporate headquarters in Marlborough, Massachusetts. In

August 2015,

the Company entered into a lease amendment for this location to extend the term of the lease by

two

years through

October 31, 2020.

In addition, the lease amendment expanded the Company’s office space at this location by

7,600

square feet to a new total of

22,100

square feet. The base rent for the combined space over the lease term will range from an initial low of

$36,000

per month, which includes

$12,000

per month for the expansion space commencing in early

2016,

to a high of

$39,000

per month. The Company will have an option to extend the lease for

one

additional term of

five

years.

In connection with the sale of our U.S. Laboratory Services Business to Quest, we entered into a sublease with Quest for approximately

9,000

square feet of warehousing and office space in Norwood, Massachusetts. The sublease expires in

November 2020.

The base rent for the space subject to sublease is approximately

$17,000

per month.

June 2018,

the Company entered into a lease for new space in Abingdon, England, which extends through

June 2033

that will allow it to combine its manufacturing, laboratory, storage and office operations into a single facility. The base rent on the facility over the lease term will range from

$39,000

per month to

$79,000

per month. With the exception of manufacturing and associated groups, our U.K. operations are now located in this facility.

Many of the Company’s leases contain options to renew and extend lease terms and options to terminate leases early. Reflected in the right-of-use asset and lease liability on the Company’s balance sheet are the periods provided by renewal and extension options that the Company is reasonably certain to exercise, as well as the periods provided by termination options that the Company is reasonably certain to

not

exercise.

The Company has existing leases that include variable lease and non-lease components that are

not

included in the right-of-use asset and lease liability and are reflected as an expense in the period incurred. Such payments primarily include common area maintenance charges and increases in rent payments that are driven by factors such as future changes in an index (e.g., the Consumer Price Index).

In calculating the present value of future lease payments, the Company has elected to utilize its incremental borrowing rate based on the remaining lease term at the date of adoption. The Company has elected to account for each lease component and its associated non-lease components as a single lease component and has allocated all of the contract consideration across lease components only. This will potentially result in the initial and subsequent measurement of the balances of the right-of-use asset and lease liability for leases being greater than if the policy election was

not

applied. The Company has existing net leases in which the non-lease components (e.g., common area maintenance, maintenance, consumables, etc.) are paid separately from rent based on actual costs incurred and therefore are

not

included in the right-of-use asset and lease liability and are reflected as an expense in the period incurred. As of

March 31, 2019,

an operating lease right-of-use asset of

$7.2

million and an operating lease liability of

$8.3

million are reflected on the consolidated balance sheet.

The elements of lease expense were as follows:

	Three Months Ended March 31, 2019

Lease Cost
Operating lease cost	$	322
Short-term lease cost		190
Variable lease cost		155
Total lease cost		667

Other Information
Cash paid for amounts included in the measurement of lease liabilities		263
Operating lease liabilities arising from obtaining right-of-use assets		—

Operating Leases
Weighted average remaining lease term (in years)		12.82

Operating Leases
Weighted average discount rate		7.82	%

Future lease payments required under non-cancelable operating leases in effect as of

March 31, 2019

were as follows:

(in thousands)	March 31, 2019
2019	$	764
2020		1,046
2021		1,004
2022		998
2023		998
Thereafter		8,677
Total lease payments		13,487
Less: imputed interest		(5,220	)
Total operating lease liabilities	$	8,267

The Company adopted ASU

2016

January 1, 2019,

as noted above and, as required, the following disclosure is provided for periods prior to adoption. Future minimum lease payments required under non-cancelable operating leases in effect as of

December 31, 2018

were as follows:

(in thousands)	December 31, 2018
2019	$	2,024
2020		1,848
2021		972
2022		855
2023		855
Thereafter		7,558
Total minimum lease payments	$	14,112