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LEASES
6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Rocket Lab USA, Inc.    
LEASES
(14)
LEASES
The Company has operating leases for properties, vehicles and equipment. The Company’s leases have remaining lease terms of one year to eighteen years, some of which include options to extend the lease term, and some of which include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options.
There have been no material changes in the Company’s lease portfolio since December 31, 2020.
15.
LEASES
The Company has operating leases for properties, vehicles and equipment. The Company’s leases have remaining lease terms of one year to eighteen years, some of which include options to extend the lease term for up to one year, and some of which include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options.
In October 2019, the Company entered into an operating lease agreement to lease certain building premises in Long Beach, CA. The commencement date of the lease is April 1, 2020 and the expiration date is June 30, 2027. Under the terms of the agreement, the Company transferred $124 in security deposits and recognized prepaid rent of $124 upon execution. Payments under the lease will continue through the initial lease term of 87 months. Tenant allowance, net of construction management fee, initially recognized was $454. The Company has options to renew the lease for two five-year periods.
 
 
As of December 31, 2019, the Company had a finance lease for certain equipment with an option to purchase the equipment. During the year ended December 31, 2020, the Company exercised the purchase option.
Supplemental balance sheet information related to leases as of December 31, were as follows:
 
Liabilities
 
Presentation
 
2020
   
2019
 
Current:
     
Operating lease liabilities
  Other current liabilities   $ 1,670     $ 1,001  
Finance lease liabilities
  Finance lease liabilities     —         2,246  
   
 
 
   
 
 
 
Total lease liabilities, current
      1,670       3,247  
Non-current:
     
Operating lease liabilities
 
Non-current lease liabilities
    27,299       26,025  
   
 
 
   
 
 
 
Total lease liabilities
    $ 28,969     $ 29,272  
   
 
 
   
 
 
 
The components of lease expense were as follows during the years ended December 31:
 
    
2020
    
2019
 
Operating lease costs
   $ 2,552      $ 2,752  
  
 
 
    
 
 
 
Finance lease costs:
     
Amortization of
right-of-use
assets
   $ 583      $ 50  
Interest on lease liabilities
     95        9  
  
 
 
    
 
 
 
Total finance lease costs
   $ 678      $ 59  
  
 
 
    
 
 
 
Supplemental cash flow information related to leases is as follows for the years ended December 31:
 
    
2020
    
2019
 
Cash paid for amounts included in the measurement of lease liabilities:
     
Operating cash flows from operating leases
   $ 2,080      $ 2,301  
Operating cash flows from finance leases
     95        9  
Finance cash flows from finance leases
     —          737  
Right-of-use
assets obtained in exchange for lease obligations:
     
Operating leases
   $ 2,410      $ 20,011  
Finance leases
     —          2,974  
The weighted average remaining lease term related to operating leases was 12.1 years and 11.7 years as of December 31, 2020 and 2019, respectively. The weighted average discount rate related to operating leases was 5.5% and 5.4% as of December 31, 2020 and 2019, respectively.
The weighted average remaining lease term related to finance leases was 0.9 years as of December 31, 2019. The weighted average discount rate related to finance leases was 5% as of December 31, 2019.
 
 
The following is a schedule of the future minimum operating lease payments by year as of December 31:
 
    
Operating
Leases
 
2021
   $ 3,076  
2022
     3,109  
2023
     3,236  
2024
     3,143  
2025
     3,145  
Thereafter
     24,749  
  
 
 
 
Total lease payments
     40,458  
Less imputed interest
     (11,489
  
 
 
 
Total
   $ 28,969