Leases

6 Months Ended

Jun. 30, 2020

The Company leases office space and equipment under various operating and finance leases, which generally are expected to be renewed or replaced by other leases. The components of lease cost were as follows:


Components of Lease Cost
	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Finance lease cost:
Amortization of right-of-use assets	$	24	$	34	$	48	$	65
Interest on lease liabilities	2		3		4		5
Operating lease cost	1,183		1,088		2,408		2,112
Short-term lease cost	223		180		458		232
Variable lease cost	126		122		244		227

Total lease cost	$	1,558	$	1,427	$	3,162	$	2,641

Rent expense for the three and six months ending June 30, 2020 and 2019 was immaterial.

Maturities of lease liabilities were as follows:


Future Minimum Lease Payments
	June 30, 2020								December 31, 2019
(in thousands)	Operating Leases			Finance Leases			Operating Leases		Finance Leases
2020	$	2,023	(a)	$	46	(a)	$	4,305	$	97
2021	2,893			80			2,718		83
2022	2,158			41			2,051		45
2023	1,564			18			1,459		22
2024	1,006			17			941		19
Thereafter	2,611			5			2,587		14
Total minimum lease payments	$	12,255		$	207		$	14,061	$	280
Less imputed interest	(996)			(12)			(1,100)		(16)
Total lease liabilities	$	11,259		$	195		$	12,961	$	264
(a) Amounts represent remaining three months of payments due for 2019.

Future Lease Commencements

As of June 30, 2020, there are additional operating leases that have not yet commenced in the amount of $4.7 million. Of the operating leases that have not commenced, $4.6 million relate to buildings and the remainder relates to equipment. These operating leases will commence in fiscal year 2020 with lease terms of 1 to 10 years.

Supplemental balance sheet information related to leases was as follows:


Operating Leases
(in thousands)	June 30, 2020					December 31, 2019
Other non-current assets	$	11,159				$	12,858

Accrued liabilities	3,263					3,972
Other long-term liabilities	7,996					8,989
Total operating lease liabilities	$	11,259				$	12,961

Finance Leases
(in thousands)	June 30, 2020					December 31, 2019
Property, plant and equipment, gross	$	471				$	524
Accumulated Depreciation	(263)					(265)
Property, plant and equipment, net	$	208				$	259

Current maturities of long-term debt and finance lease obligations				$	72				$	90
Long-term debt and finance lease obligations, net of current maturities				123					174
Total finance lease liabilities	$	195				$	264

Weighted Average Remaining Lease Term
Operating leases	5.04 years					5.10 years
Finance leases	3.29 years					3.47 years

Weighted Average Discount Rate
Operating leases	3.20		%			3.29		%
Finance leases	3.46		%			3.39		%

Supplemental Cash Flow information related to leases was as follows:


	Six Months Ended June 30,
(in thousands)	2020		2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	4	$	7
Operating cash flows from operating leases	2,236		2,108
Financing cash flows from finance leases	47		76

Leases


Components of Lease Cost
	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2020		2019		2020		2019
Finance lease cost:
Amortization of right-of-use assets	$	24	$	34	$	48	$	65
Interest on lease liabilities	2		3		4		5
Operating lease cost	1,183		1,088		2,408		2,112
Short-term lease cost	223		180		458		232
Variable lease cost	126		122		244		227

Total lease cost	$	1,558	$	1,427	$	3,162	$	2,641

Rent expense for the three and six months ending June 30, 2020 and 2019 was immaterial.

Maturities of lease liabilities were as follows:


Future Minimum Lease Payments
	June 30, 2020								December 31, 2019
(in thousands)	Operating Leases			Finance Leases			Operating Leases		Finance Leases
2020	$	2,023	(a)	$	46	(a)	$	4,305	$	97
2021	2,893			80			2,718		83
2022	2,158			41			2,051		45
2023	1,564			18			1,459		22
2024	1,006			17			941		19
Thereafter	2,611			5			2,587		14
Total minimum lease payments	$	12,255		$	207		$	14,061	$	280
Less imputed interest	(996)			(12)			(1,100)		(16)
Total lease liabilities	$	11,259		$	195		$	12,961	$	264
(a) Amounts represent remaining three months of payments due for 2019.

Future Lease Commencements

Supplemental balance sheet information related to leases was as follows:


Operating Leases
(in thousands)	June 30, 2020					December 31, 2019
Other non-current assets	$	11,159				$	12,858

Accrued liabilities	3,263					3,972
Other long-term liabilities	7,996					8,989
Total operating lease liabilities	$	11,259				$	12,961

Finance Leases
(in thousands)	June 30, 2020					December 31, 2019
Property, plant and equipment, gross	$	471				$	524
Accumulated Depreciation	(263)					(265)
Property, plant and equipment, net	$	208				$	259

Current maturities of long-term debt and finance lease obligations				$	72				$	90
Long-term debt and finance lease obligations, net of current maturities				123					174
Total finance lease liabilities	$	195				$	264

Weighted Average Remaining Lease Term
Operating leases	5.04 years					5.10 years
Finance leases	3.29 years					3.47 years

Weighted Average Discount Rate
Operating leases	3.20		%			3.29		%
Finance leases	3.46		%			3.39		%

Supplemental Cash Flow information related to leases was as follows:


	Six Months Ended June 30,
(in thousands)	2020		2019

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	4	$	7
Operating cash flows from operating leases	2,236		2,108
Financing cash flows from finance leases	47		76