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Leases
 9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases Leases
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing lease guidance under Topic 840. The new standard requires lessees to recognize Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months, including those leases that were previously classified as operating leases. Topic 842 retains a distinction between finance leases and operating leases, with measurement and presentation of expenses and cash flows being dependent upon the classification. The Company adopted the new standard on January 1, 2019 utilizing the optional transition method allowed under ASU 2018-11, Leases (Topic 842): Targeted Improvements.

The Company elected to adopt the package of practical expedients allowed under the new accounting guidance, which allows the Company to not reassess previous conclusions regarding 1) whether existing or expired leases are or contain leases 2) the lease classification of existing or expired leases and 3) initial direct costs for existing leases. In addition, the Company adopted the practical expedient to combine lease and non-lease components for all classes of underlying assets.

The Company reviewed its portfolio of lease agreements, and other service contracts to identify embedded leases, and reached conclusions on key accounting assessments related to the standard and finalized the related accounting policies. As a result of the implementation of the new standard, all leases with a term greater than 12 months previously classified as operating leases and only expensed through the Consolidated Statements of Operations are now recorded on the Consolidated Balance Sheets. Per the requirements of the standard, the Company has recorded a ROU asset and a lease liability representing the present value of future lease payments to be paid in exchange of the use of an asset of $1.9 million and $2.0 million respectively as of January 1, 2019. However, there was no cumulative effect adjustment to the opening balance of retained earnings as the assets and the liabilities recorded upon adoption off-set each other.

We have operating and finance leases for our corporate, manufacturing and international facilities as well as certain equipment. Our leases have remaining terms of less than one year to up to 10 years, including available options to extend some of our lease terms for up to 5 years. One of our lease agreements has an early termination option within one year. As the interest rates implicit in our leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings. The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities.

The components of lease expense were as follows:

Three months ended
September 30, 2019		Nine months ended
September 30, 2019
Operating lease cost$159  $476  
Finance lease cost:
        Amortization of right-of-use assets$5  $11  
        Interest on lease liabilities$1  $5  
Total finance lease cost$6  $16  

Right-of-use assets obtained in exchange for new operating lease liabilities were $1.0 million as of September 30, 2019. Cash paid for amounts included in the measurement of operating lease liabilities during the three and nine months ended September 30, 2019 was $0.1 million and $0.4 million respectively. Cash paid for amounts included in the measurement of finance lease liabilities during the three and nine months ended September 30, 2019 was not material.
Supplemental balance sheet information related to leases were as follows:

September 30, 2019
Operating Leases
Other assets$2,547  
Other current liabilities421  
Other long-term liabilities2,307  
Total operating lease liabilities2,728  
Finance Leases
Property, plant, and equipment81  
Accumulated depreciation(10) 
Property, plant, and equipment, net71  
Other current liabilities13  
Other long-term liabilities60  
Total finance lease liabilities$73  

The weighted average remaining lease terms for operating and financing leases are 6.5 years and 4.9 years, respectively. The weighted average discount rates for operating and finance leases are 8.2% and 8.0%, respectively.

As of September 30, 2019 maturities of lease liabilities were as follows:
Operating Financing
Year Ending December 31, LeasesLeases
2019 (excluding the nine months ended September 30, 2019)$161  $4  
2020631  18  
2021607  18  
2022548  18  
2023548  18  
2024235  12  
Thereafter841  —  
Total lease payments3,571  88  
Less imputed interest843  15  
Total $2,728  $73  

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments for operating leases having initial or remaining noncancellable lease terms in excess of one year would have been as follows:
Commitments
2019$573  
2020611  
2021633  
2022610  
2023607  
2024200  
$3,234  
Leases Leases
In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes the existing lease guidance under Topic 840. The new standard requires lessees to recognize Right-of-Use ("ROU") assets and lease liabilities for all leases with terms greater than 12 months, including those leases that were previously classified as operating leases. Topic 842 retains a distinction between finance leases and operating leases, with measurement and presentation of expenses and cash flows being dependent upon the classification. The Company adopted the new standard on January 1, 2019 utilizing the optional transition method allowed under ASU 2018-11, Leases (Topic 842): Targeted Improvements.

The Company elected to adopt the package of practical expedients allowed under the new accounting guidance, which allows the Company to not reassess previous conclusions regarding 1) whether existing or expired leases are or contain leases 2) the lease classification of existing or expired leases and 3) initial direct costs for existing leases. In addition, the Company adopted the practical expedient to combine lease and non-lease components for all classes of underlying assets.

The Company reviewed its portfolio of lease agreements, and other service contracts to identify embedded leases, and reached conclusions on key accounting assessments related to the standard and finalized the related accounting policies. As a result of the implementation of the new standard, all leases with a term greater than 12 months previously classified as operating leases and only expensed through the Consolidated Statements of Operations are now recorded on the Consolidated Balance Sheets. Per the requirements of the standard, the Company has recorded a ROU asset and a lease liability representing the present value of future lease payments to be paid in exchange of the use of an asset of $1.9 million and $2.0 million respectively as of January 1, 2019. However, there was no cumulative effect adjustment to the opening balance of retained earnings as the assets and the liabilities recorded upon adoption off-set each other.

We have operating and finance leases for our corporate, manufacturing and international facilities as well as certain equipment. Our leases have remaining terms of less than one year to up to 10 years, including available options to extend some of our lease terms for up to 5 years. One of our lease agreements has an early termination option within one year. As the interest rates implicit in our leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings. The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities.

The components of lease expense were as follows:

Three months ended
September 30, 2019		Nine months ended
September 30, 2019
Operating lease cost$159  $476  
Finance lease cost:
        Amortization of right-of-use assets$5  $11  
        Interest on lease liabilities$1  $5  
Total finance lease cost$6  $16  

Right-of-use assets obtained in exchange for new operating lease liabilities were $1.0 million as of September 30, 2019. Cash paid for amounts included in the measurement of operating lease liabilities during the three and nine months ended September 30, 2019 was $0.1 million and $0.4 million respectively. Cash paid for amounts included in the measurement of finance lease liabilities during the three and nine months ended September 30, 2019 was not material.
Supplemental balance sheet information related to leases were as follows:

September 30, 2019
Operating Leases
Other assets$2,547  
Other current liabilities421  
Other long-term liabilities2,307  
Total operating lease liabilities2,728  
Finance Leases
Property, plant, and equipment81  
Accumulated depreciation(10) 
Property, plant, and equipment, net71  
Other current liabilities13  
Other long-term liabilities60  
Total finance lease liabilities$73  

The weighted average remaining lease terms for operating and financing leases are 6.5 years and 4.9 years, respectively. The weighted average discount rates for operating and finance leases are 8.2% and 8.0%, respectively.

As of September 30, 2019 maturities of lease liabilities were as follows:
Operating Financing
Year Ending December 31, LeasesLeases
2019 (excluding the nine months ended September 30, 2019)$161  $4  
2020631  18  
2021607  18  
2022548  18  
2023548  18  
2024235  12  
Thereafter841  —  
Total lease payments3,571  88  
Less imputed interest843  15  
Total $2,728  $73  

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments for operating leases having initial or remaining noncancellable lease terms in excess of one year would have been as follows:
Commitments
2019$573  
2020611  
2021633  
2022610  
2023607  
2024200  
$3,234