Leases

9 Months Ended

Sep. 30, 2019

Leases

LEASES

NOTE 16.    LEASES

We lease manufacturing and office space under non-cancelable operating leases. Some of these leases contain provisions for landlord funded leasehold improvements which are recorded as right of use assets with related liabilities. Additionally, several existing operating leases had deferred rent balances under ASC 840 which resulted in adjusted right of use asset balances recorded upon adoption of ASC 842. Most leases include one or more options to renew. We regularly evaluate the renewal options and when they are reasonably certain of exercise, we include the renewal period in our lease terms, along with the right-of-use assets ("ROU") and lease liabilities. In many cases, we have lease terms that are less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our ROU assets and lease liabilities. New leases are negotiated and executed to meet business objectives on an on-going basis. 

Our leases do not provide an implicit rate. Accordingly, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. We have a centrally managed treasury function; therefore, based on the applicable lease terms and the current economic environment, we apply a portfolio approach for determining the incremental borrowing rate.

Maturities of our lease liabilities for all operating leases at September 30, 2019 are as follows:

Year Ending December 31,
2019 (remaining)	$	4,626
2020		20,196
2021		18,527
2022		13,713
2023		11,080
Thereafter		71,003
Total lease payments	$	139,145
Less: Interest		(26,396)
Present value of lease liabilities	$	112,749

The weighted average remaining lease term and discount rate for all our operating leases as of September 30, 2019 were as follows:

	Weighted Average
	Remaining Lease	Weighted Average
	Term	Discount Rate
Operating leases	8.7	4.03	%

Cash paid for amounts included in the measurement of lease liabilities for the nine months ended September 30, 2019 was as follows:

	Cash Outflow
Operating leases	$	8,850