Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Leases

We have operating leases for office space, laboratory operations, research and development facilities, manufacturing locations, warehouses and certain equipment. We determine if a contract contains a lease at inception or modification of a contract. Our leases generally do not provide an implicit interest rate, and we therefore use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. We used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. Many of our leases contain rental escalation, renewal options and/or termination options that are factored into our determination of lease payments as appropriate. Variable lease payment amounts that cannot be determined at the commencement of the lease are not included in the right-to-use assets or liabilities.

The following table presents the lease balances within the Consolidated Balance Sheet as of December 31, 2019:

(in thousands)	Classification on the Balance Sheet	December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	39,380
Finance lease assets	Property, plant and equipment, net	6,789
Liabilities
Current
Operating lease liabilities	Current maturities of operating leases	12,038
Accrued expenses	Current maturities of finance leases	2,743
Long-term
Operating lease liabilities	Operating lease liabilities	27,665
Other long-term liabilities	Finance lease liabilities	$	4,046
Weighted average remaining lease term
Operating leases		5.6 years
Finance leases		2.6 years
Weighted average discount rate
Operating leases		6.3		%
Finance leases		3.0		%

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on our Consolidated Balance Sheet as of December 31, 2019:

(in thousands)	Operating		Finance
2020	$	12,750	$	2,871
2021	6,526		2,186
2022	5,777		1,155
2023	5,450		563
2024	4,297		233
Thereafter	17,186		—
Total undiscounted future minimum lease payments	51,986		7,008
Less: Difference between lease payments and discounted lease liabilities	12,283		219
Total lease liabilities	$	39,703	$	6,789

Expense under operating leases and finance leases was $20.2 million and $3.1 million, respectively, for the year ended December 31, 2019, and includes $3.4 million of variable lease costs. Operating lease costs and finance lease costs are included within Operating loss in the Consolidated Statement of Operations. Short-term lease costs were not material.

Supplemental cash flow information is as follows:

(in thousands)	For the year ended December 31, 2019
Operating cash out flows from operating leases	$	20,712
Operating cash out flows from finance leases	374
Financing cash out flows from finance leases	2,833
Total	$	23,919

Leases

Leases

We have operating leases for office space, laboratory operations, research and development facilities, manufacturing locations, warehouses and certain equipment. We determine if a contract contains a lease at inception or modification of a contract. Our leases generally do not provide an implicit interest rate, and we therefore use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. We used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. Many of our leases contain rental escalation, renewal options and/or termination options that are factored into our determination of lease payments as appropriate. Variable lease payment amounts that cannot be determined at the commencement of the lease are not included in the right-to-use assets or liabilities.

The following table presents the lease balances within the Consolidated Balance Sheet as of December 31, 2019:

(in thousands)	Classification on the Balance Sheet	December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	39,380
Finance lease assets	Property, plant and equipment, net	6,789
Liabilities
Current
Operating lease liabilities	Current maturities of operating leases	12,038
Accrued expenses	Current maturities of finance leases	2,743
Long-term
Operating lease liabilities	Operating lease liabilities	27,665
Other long-term liabilities	Finance lease liabilities	$	4,046
Weighted average remaining lease term
Operating leases		5.6 years
Finance leases		2.6 years
Weighted average discount rate
Operating leases		6.3		%
Finance leases		3.0		%

The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on our Consolidated Balance Sheet as of December 31, 2019:

(in thousands)	Operating		Finance
2020	$	12,750	$	2,871
2021	6,526		2,186
2022	5,777		1,155
2023	5,450		563
2024	4,297		233
Thereafter	17,186		—
Total undiscounted future minimum lease payments	51,986		7,008
Less: Difference between lease payments and discounted lease liabilities	12,283		219
Total lease liabilities	$	39,703	$	6,789

Expense under operating leases and finance leases was $20.2 million and $3.1 million, respectively, for the year ended December 31, 2019, and includes $3.4 million of variable lease costs. Operating lease costs and finance lease costs are included within Operating loss in the Consolidated Statement of Operations. Short-term lease costs were not material.

Supplemental cash flow information is as follows:

(in thousands)	For the year ended December 31, 2019
Operating cash out flows from operating leases	$	20,712
Operating cash out flows from finance leases	374
Financing cash out flows from finance leases	2,833
Total	$	23,919