LEASES AND COMMITMENTS

12 Months Ended

Dec. 31, 2019

LEASES AND COMMITEMENTS:

Facilities and Leases

The Company owns its main executive, administrative, manufacturing and technical offices in San Jose, California. The Company also owns a research and development facility in New Jersey and a test facility in Biel, Switzerland. The Company’s leases consist of operating leases for administrative office spaces, research-and-development facilities, design centers and sales offices in various countries around the world. The Company determines if an arrangement is a lease at inception. Some lease agreements contain lease and non-lease components, which are accounted for as a single lease component. Total lease expense was $2.5 million, $2.2 million and $2.0 million in the years ended December 31, 2019, 2018 and 2017, respectively, while short-term and variable lease expenses were not material during these periods.

Balance sheet information related to leases was as follows:



(In thousands)	Balance Sheet Classification	December 31, 2019
Right-of-use assets
Operating lease assets	Other assets	$	9,521
Lease liabilities
Current operating lease liabilities	Other accrued liabilities	$	1,954
Non-current operating lease liabilities	Other liabilities	7,031
Total		$	8,985

Initial lease terms are determined at commencement and may include options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. Remaining lease terms range from one to nine years, some of which include options to extend for up to six years, and some of which include options to terminate within one year. Leases with an initial term of twelve months or less are not recorded on the balance sheet. As the Company’s leases do not provide an implicit rate, the present value of future lease payments is determined using the Company’s incremental borrowing rate based on information available at commencement date.



Lease term and discount rate	December 31, 2019
Weighted average remaining lease term	4.8 years
Weighted average discount rate	3.9	%

Supplemental cash flows information related to leases was as follow:



	Year-ended
(In thousands)	December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,964

Right-of-use assets obtained in exchange for new operating lease obligations	$	4,884

Future minimum lease payments under all non-cancelable lease agreements as of December 31, 2019, are as follows:



(In thousands)	December 31, 2019
2020	$	2,131
2021	2,313
2022	1,923
2023	1,690
2024	699
Thereafter	1,082
Total future minimum lease payments	9,838
Less imputed interest	(853		)
Total	$	8,985

Purchase Obligations

At December 31, 2019, the Company had no non-cancelable purchase obligations that were due beyond one year.