Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.2
Leases
9 Months Ended
Sep. 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 11 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 $25 for the three and nine months ended September 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:

 

 

 

Nine months ended

 

 

 

September 30,

 

 

 

2020

 

 

2019

 

Cash paid for operating lease liabilities

 

$

1,803

 

 

$

1,820

 

Operating lease cost

 

 

2,045

 

 

 

1,703

 

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

 

 

5,234

 

 

 

6,418

 

Weighted-average remaining lease term

 

2.9 years

 

 

2.5 years

 

Weighted-average discount rate

 

 

3.3

%

 

 

3.8

%

 

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

 

 

 

 

2021

 

$

2,199

 

2022

 

 

1,993

 

2023

 

 

1,844

 

2024

 

 

1,842

 

2025

 

 

596

 

Thereafter

 

 

3,211

 

 

 

 

11,685

 

Less imputed interest

 

 

(1,225

)

Total lease liabilities

 

$

10,460

 

 

 

 

 

 

Operating lease liability - current

 

$

1,890

 

Operating lease liability - noncurrent

 

$

8,570

 

Total lease liabilities

 

$

10,460

 

 

 

As of September 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 $21,433. 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 approximately 10 years. The table above excludes lease payments that were not fixed at commencement or modification.