Leases

3 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

8. Leases

We have operating and finance lease obligations resulting from the lease of land and buildings that comprise our corporate headquarters and various manufacturing facilities; leases related to additional manufacturing, office, and warehouse space; leases on Company vehicles; and leases on a variety of office and other equipment.

We sublease, on an operating lease basis, two unused office space facilities near our corporate office. Total annual sub-lease rental income for these facilities is approximately $905,000.

Supplemental consolidated balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):

Operating leases:		March 31, 2020		December 31, 2019
Operating lease right-of-use assets	$	26,714	$	27,007
Accumulated amortization		(6,291)		(5,013)
Operating lease right-of-use assets, net	$	20,423	$	21,994
Current maturities of operating leases	$	5,442	$	5,487
Non-current maturities of operating lease		16,411		17,918
Total operating lease liabilities	$	21,853	$	23,405
Finance leases:
Property and equipment, at cost	$	6,984	$	7,161
Accumulated amortization		(1,408)		(1,279)
Property and equipment, net	$	5,576	$	5,882
Current maturities of finance leases	$	569	$	597
Non-current maturities of finance leases		5,147		5,415
Total finance lease liabilities	$	5,716	$	6,012
Weighted average remaining lease term (in years):
Operating leases		6.5		5.5
Finance leases		10.4		10.6
Weighted average discount rate:
Operating leases		4.3%		5.4%
Finance leases		2.0%		2.0%

Current maturities of finance leases are included as a component of Accrued Expenses and Other and non-current maturities of finance leases are included as a component of Other Long-Term Liabilities on our Summary Consolidated Balance Sheets. A summary of lease expenses for our finance and operating leases included in General, Administrative, and Marketing Expenses on our Summary Consolidated Statements of Operations and Comprehensive Loss are as follows (in thousands):

	Three Months Ended		Three Months Ended
	March 31, 2020		March 31, 2019
Amortization of property and equipment	$	162	$	211
Interest expense on finance leases		29		32
Total finance lease expense		191		243
Operating lease expense		1,748		1,550
Sublease income		(226)		(228)
Total lease expense	$	1,713	$	1,565

A summary of our supplemental cash flow information is as follows (in thousands):

		Three Months Ended		Three Months Ended
Cash paid for amounts included in the measurement of lease liabilities:		March 31, 2020		March 31, 2019
Operating cash flows for finance leases	$	29	$	32
Operating cash flows for operating leases		1,745		1,636
Financing cash flows for finance leases		147		172

Future minimum lease payments and sublease rental income are as follows (in thousands):

	Finance		Operating		Sublease
	Leases		Leases		Income
Remainder of 2020	$	519	$	4,833	$	679
2021		642		6,289		905
2022		598		3,834		306
2023		597		2,547		--
2024		595		2,539		--
Thereafter		3,380		4,919		--
Total minimum lease payments	$	6,331	$	24,961	$	1,890
Less amount representing interest		(615)		(3,108)
Present value of net minimum lease payments		5,716		21,853
Less current maturities		(569)		(5,442)
Lease liabilities, less current maturities	$	5,147	$	16,411