XML 28 R17.htm IDEA: XBRL DOCUMENT v3.21.2
Leases
 6 Months Ended
Jun. 30, 2021
Leases [Abstract]  
Leases Leases
We account for leases in accordance with ASC Topic 842, “Leases,” which requires lessees to recognize a right-of-use (“ROU”) asset and lease liability on the balance sheet and expands disclosures about leasing arrangements for both lessees and lessors, among other items, for most lease arrangements.
In accordance with the adoption of ASC 842 on January 1, 2019, we recorded operating lease ROU assets, which represent our right to use an underlying asset for the lease term, and operating lease liabilities which represent our obligation to make lease payments. Generally, we enter into operating lease agreements for facilities. Finance lease assets are recorded within property and equipment, net of accumulated depreciation. The amount of operating lease liabilities due within 12 months are recorded in other current liabilities, with the remaining operating lease liabilities recorded as non-current liabilities in our condensed consolidated balance sheets based on their contractual due dates. Finance lease liabilities are classified according to contractual due dates.
The operating lease ROU assets and liabilities are recognized as of the lease commencement date at the present value of the lease payments over the lease term. Most of our leases do not provide an implicit rate that can readily be determined. Therefore, we use a discount rate based on our incremental borrowing rate which was 5.75% for all operating leases. Our operating lease agreements may include options to extend the lease term or terminate it early. We have included options to extend in the operating lease ROU assets and liabilities when we are reasonably certain that we will exercise such options. The weighted average remaining lease terms and discount rates for our operating leases were approximately 2.1 years and 5.75% and for our finance leases were approximately 7.8 years and 5.04% at June 30, 2021. Operating lease expense is recognized as rent expense on a straight-line basis over the lease term. Some of our operating leases contain lease and non-lease components, which we account for as a single component. We evaluate ROU assets for impairment consistent with our property and equipment policy disclosure included in our Annual Report on Form 10‑K for the year ended December 31, 2020.
Future minimum lease commitments at June 30, 2021 were as follows (in thousands):
Year Ending December 31,Operating LeasesFinance Leases
2021 (excluding the six months ended June 30, 2021)$379 $1,059 
2022603 2,149 
2023373 2,202 
202427 2,258 
2025— 2,314 
After 2025— 8,344 
Total lease payments1,382 18,326 
Less imputed interest(84)(3,336)
   Total1,298 14,990 
Short-term portion656 1,399 
   Total, net of short-term portion$642 $13,591 
The components of lease expense were as follows (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2021202020212020
Operating lease cost$182 $182 $364 $360 
Short-term lease cost(1)
4 30 8 57 
Finance lease cost
Amortization of right-of-use assets305 305 610 610 
Interest on lease liabilities192 208 387 419 
Total finance lease cost497 513 997 1,029 
Total lease costs$683 $725 $1,369 $1,446 
(1) Leases that have terms of 12 months or less
Supplemental cash flow information related to leases was as follows (in thousands):
Six Months Ended June 30,
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Cash flows from operating activities - operating leases$389 $375 
Cash flows from operating activities - finance leases387 418 
Cash flows from financing activities - finance leases650 594 
Operating lease right-of-use assets obtained in exchange for lease obligations322 300 
Leases Leases
We account for leases in accordance with ASC Topic 842, “Leases,” which requires lessees to recognize a right-of-use (“ROU”) asset and lease liability on the balance sheet and expands disclosures about leasing arrangements for both lessees and lessors, among other items, for most lease arrangements.
In accordance with the adoption of ASC 842 on January 1, 2019, we recorded operating lease ROU assets, which represent our right to use an underlying asset for the lease term, and operating lease liabilities which represent our obligation to make lease payments. Generally, we enter into operating lease agreements for facilities. Finance lease assets are recorded within property and equipment, net of accumulated depreciation. The amount of operating lease liabilities due within 12 months are recorded in other current liabilities, with the remaining operating lease liabilities recorded as non-current liabilities in our condensed consolidated balance sheets based on their contractual due dates. Finance lease liabilities are classified according to contractual due dates.
The operating lease ROU assets and liabilities are recognized as of the lease commencement date at the present value of the lease payments over the lease term. Most of our leases do not provide an implicit rate that can readily be determined. Therefore, we use a discount rate based on our incremental borrowing rate which was 5.75% for all operating leases. Our operating lease agreements may include options to extend the lease term or terminate it early. We have included options to extend in the operating lease ROU assets and liabilities when we are reasonably certain that we will exercise such options. The weighted average remaining lease terms and discount rates for our operating leases were approximately 2.1 years and 5.75% and for our finance leases were approximately 7.8 years and 5.04% at June 30, 2021. Operating lease expense is recognized as rent expense on a straight-line basis over the lease term. Some of our operating leases contain lease and non-lease components, which we account for as a single component. We evaluate ROU assets for impairment consistent with our property and equipment policy disclosure included in our Annual Report on Form 10‑K for the year ended December 31, 2020.
Future minimum lease commitments at June 30, 2021 were as follows (in thousands):
Year Ending December 31,Operating LeasesFinance Leases
2021 (excluding the six months ended June 30, 2021)$379 $1,059 
2022603 2,149 
2023373 2,202 
202427 2,258 
2025— 2,314 
After 2025— 8,344 
Total lease payments1,382 18,326 
Less imputed interest(84)(3,336)
   Total1,298 14,990 
Short-term portion656 1,399 
   Total, net of short-term portion$642 $13,591 
The components of lease expense were as follows (in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2021202020212020
Operating lease cost$182 $182 $364 $360 
Short-term lease cost(1)
4 30 8 57 
Finance lease cost
Amortization of right-of-use assets305 305 610 610 
Interest on lease liabilities192 208 387 419 
Total finance lease cost497 513 997 1,029 
Total lease costs$683 $725 $1,369 $1,446 
(1) Leases that have terms of 12 months or less
Supplemental cash flow information related to leases was as follows (in thousands):
Six Months Ended June 30,
20212020
Cash paid for amounts included in the measurement of lease liabilities:
Cash flows from operating activities - operating leases$389 $375 
Cash flows from operating activities - finance leases387 418 
Cash flows from financing activities - finance leases650 594 
Operating lease right-of-use assets obtained in exchange for lease obligations322 300