Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.2
Leases
6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases

 

6. Leases

 

The Company has entered into operating leases primarily for commercial buildings. These leases have terms which range from 2 years to 8 years, some of which include options to extend the leases for up to 5 years. There are no economic penalties for the Company to extend the lease, and it is not reasonably assured that the Company will exercise the extension options. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at commencement date based on the present value of lease payments over the lease term. The operating leases do not contain material residual value guarantees or material restrictive covenants.

 

The Company leases a property owned by a related party. Operating lease cost for the property was $8 and $16 for the three and six months ended June 30, 2020, respectively, which was included in the total operating lease cost.

 

Information related to the Company's right-of-use assets and related operating lease liabilities were as follows:

 

 

 

Six months ended

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Cash paid for operating lease liabilities

 

$

1,183

 

 

$

1,164

 

Operating lease cost

 

 

1,344

 

 

 

1,087

 

Non-cash right-of-use assets obtained in exchange for new operating lease obligations

 

 

4,667

 

 

 

6,418

 

Weighted-average remaining lease term

 

2.9 years

 

 

2.8 years

 

Weighted-average discount rate

 

 

3.7

%

 

 

3.8

%

 

Maturities of lease liabilities due in the 12-month period ending June 30,

 

 

 

 

2021

 

$

2,143

 

2022

 

 

1,971

 

2023

 

 

1,752

 

2024

 

 

1,757

 

2025

 

 

846

 

Thereafter

 

 

3,344

 

 

 

 

11,813

 

Less imputed interest

 

 

(1,297

)

Total lease liabilities

 

$

10,516

 

 

 

 

 

 

Operating lease liability - current

 

$

1,823

 

Operating lease liability - noncurrent

 

$

8,693

 

Total lease liabilities

 

$

10,516

 

 

 

As of June 30, 2020, the Company has additional operating leases for its corporate headquarters in California and industrial space in Texas that have not yet commenced, with total minimum lease payments of $21,548. Lease payments for its corporate headquarters will increase annually by the lesser of the change, if any, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor or three and one-half percent (3.5%) at each annual adjustment date thereafter. Lease payments for the Company’s industrial space in Texas will increase annually by two and one-half percent (2.5%) at each annual adjustment date thereafter. These operating leases are estimated to commence in the first quarter of 2021 with a lease term of 10 to 11 years. The table above excludes lease payments that were not fixed at commencement or modification.