Leasing Arrangements (Tables)

6 Months Ended

Jun. 30, 2020

The following table sets forth the Company’s lease cost components (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Operating lease cost	$	1,169	$	1,261	$	2,343	$	2,413
Amortization of finance lease assets	5		3		10		49
Interest on finance lease liabilities	1		1		1		8
Short-term lease cost	29		16		70		27
Variable lease cost	398		793		874		793
Sublease income	(6)		(6)		(24)		(6)
Total lease cost⁽¹⁾⁽²⁾	$	1,596	$	2,068	$	3,274	$	3,284

(1) Of the total lease cost of $1.6 million and $2.1 million during the three months ended June 30, 2020 and 2019, respectively, $0.8 million and $1.1 million was included within selling, general and administrative expenses, $0.4 million and $0.4 million was including within cost of sales, and $0.4 million and $0.5 million was included in research and development expenses in the condensed consolidated statement of comprehensive (loss), respectively.

(2) Of the total lease cost of $3.3 million during the six months ended June 30, 2020 and 2019, $1.7 million was included within selling, general and administrative expenses, $0.8 million was included within cost of sales, and $0.8 million was included in research and development expenses in the condensed consolidated statement of comprehensive (loss).

The following table sets forth the Company’s supplemental cash flow information related to leases (in thousands):


	Six Months Ended June 30,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,379	$	2,363
Operating cash flows from finance leases	1		8
Financing cash flows from finance leases	10		338

	Six Months Ended June 30,
	2020		2019
Right-of-use assets, net obtained in exchange for new lease obligations:
Operating leases	110		23,695
Finance leases	$	—	$	71

The following table sets forth the Company’s weighted-average lease terms and discount rates (lease term in years):


	June 30, 2020		June 30, 2019
Weighted-average remaining lease terms:
Operating leases	8.0 years		8.7 years
Finance leases	2.1 years		3.1 years

Weighted-average discount rates:
Operating leases	10.0	%	10.0	%
Finance leases	5.5	%	5.5	%

Assets And Liabilities, Lease

The following table sets forth the Company’s supplemental balance sheet information related to leases (in thousands):


	June 30, 2020		December 31, 2019
Right-of-use assets, net:
Operating leases, gross	$	24,560	$	24,564
Accumulated reduction	(3,156)		(2,119)
Operating leases, net	$	21,404	$	22,445
Finance leases (included in “Other non-current assets”), gross	73		72
Accumulated depreciation	(31)		(21)
Finance leases (included in “Other non-current assets”), net	$	42	$	51
Total Right-of-use assets, net	$	21,446	$	22,496

Lease liabilities:
Current portion of Operating lease liability ⁽¹⁾	$	2,481	$	2,290
Long-term Operating lease liability ⁽²⁾	20,753		22,021
Total Operating lease liability	$	23,234	$	24,311
Current portion of Finance lease (included in “Accrued expenses and other liabilities”) liability	$	21	$	20
Long-term Finance lease (included in “Pension obligations and other liabilities”) liability	24		34
Total Finance lease liability	$	45	$	54
Total Lease liabilities	$	23,279	$	24,365

(1) $2.3 million of the Current portion of Operating lease liability was included in the liabilities subject to compromise in the condensed consolidated balance sheets as of June 30, 2020.

(2) $20.5 million of the Long-term portion of Operating lease liability was included in the liabilities subject to compromise in the condensed consolidated balance sheets as of June 30, 2020.

Maturities of Finance Leases

The following table sets forth the Company’s scheduled maturities of lease liabilities as of June 30, 2020, (in thousands):


Year ending December 31,	Operating leases		Finance leases
2020	$	2,267	$	12
2021	4,819		23
2022	4,538		13
2023	3,879		—
2024	3,560		—
2025 and beyond	15,345		—
Total lease payments⁽¹⁾	$	34,408	$	48
Less: Imputed interest	$	(11,174)	$	(3)
Total lease liabilities	$	23,234	$	45

(1) Under ASC 842, the Company is required to take into consideration contractual lease renewal options that are reasonably assured to be exercised when determining the lease liability. As of June 30, 2020, the Company has approximately $11.4 million of reasonably assured renewal option payments included in the total lease payments.

Maturities of Operating Leases

The following table sets forth the Company’s scheduled maturities of lease liabilities as of June 30, 2020, (in thousands):


Year ending December 31,	Operating leases		Finance leases
2020	$	2,267	$	12
2021	4,819		23
2022	4,538		13
2023	3,879		—
2024	3,560		—
2025 and beyond	15,345		—
Total lease payments⁽¹⁾	$	34,408	$	48
Less: Imputed interest	$	(11,174)	$	(3)
Total lease liabilities	$	23,234	$	45