LEASES AND RELATED PARTY LEASES

9 Months Ended

Sep. 30, 2020

The Company leases administrative, manufacturing, research and distribution facilities and vehicles through operating lease agreements. The Company has no finance leases as of September 30, 2020. Many of the Company's leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components.

Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the Right of Use ("ROU") assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term.

As most of the Company's leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

Total operating lease expense for the nine months ended September 30, 2020 and September 30, 2019, was $14.6 million and $14.2 million respectively, which includes $0.2 million, in related party operating lease expense.

Supplemental balance sheet information related to operating leases at September 30, 2020 were as follows:



	September 30, 2020
	(In thousands, except lease term and discount rate)
Weighted average remaining lease term (in years):

Leased facilities	11.8
Leased vehicles	1.4

Weighted average discount rate:
Leased facilities	4.6	%
Leased vehicles	2.2	%

Supplemental cash flow information related to leases for the nine months ended September 30, 2020 and September 30, 2019 were as follows:



	September 30, 2020		September 30, 2019
	(In thousands)		(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	10,976	$	10,680

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	6,007	$	41,860

Future minimum lease payments under operating leases at September 30, 2020 were as follows:



	Related Parties		Third Parties		Total
	(In thousands)
2020	$	74	$	3,742	$	3,816
2021	296		13,209		13,505
2022	296		13,224		13,520
2023	296		10,782		11,078
2024	296		9,996		10,292
Thereafter	1,426		86,750		88,176
Total minimum lease payments	$	2,684	$	137,703	$	140,387
Less: Imputed interest					39,091
Total lease liabilities					101,296
Less: Current lease liabilities					12,518
Long-term lease liabilities					88,778

Related Party Leases

The Company leases its manufacturing facility in Plainsboro, New Jersey, from a general partnership that is 50% owned by a corporation whose shareholders are trusts, whose beneficiaries include family members of the Company’s principal stockholder and former director. The term of the current lease agreement is through October 31, 2029 at an annual rate of approximately $0.3 million per year. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2029 through October 31, 2034 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2034 through October 31, 2039 at the fair market rental rate of the premises.