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LEASES

6 Months Ended

Jun. 30, 2021

NOTE 15. LEASES

The Company leases manufacturing and office space under non-cancelable operating leases. Some of these leases contain provisions for landlord funded leasehold improvements which are recorded as a reduction to right-of-use ("ROU") assets and the related operating lease liabilities. For leases containing an option 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 ROU assets and operating 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 operating 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, we apply a portfolio approach for determining the incremental borrowing rate applicable to the lease term.

Components of operating lease cost were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Operating lease cost	$	6,052	$	4,860	$	11,973	$	9,694
Short-term and variable lease cost		284		1,339		1,126		2,647
Total operating lease cost	$	6,336	$	6,199	$	13,099	$	12,341

Maturities of our operating lease liabilities are as follows:


Year Ending December 31,
2021 (remaining)	$	10,562
2022		18,568
2023		15,284
2024		12,967
2025		10,769
Thereafter		74,927
Total lease payments		143,077
Less: Interest		(32,503)
Present value of lease liabilities	$	110,574

In addition, we have lease agreements that commence in the future between 2021 and 2023 with total payments of $8.3 million through 2026.

Other information related to leases, including supplemental cash flow information, consists of:


	June 30,			December 31,
	2021			2020
Weighted average remaining lease term (in years)		10.25			10.65
Weighted average discount rate		4.58	%		4.63	%


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cash paid for operating leases	$	6,021	$	5,828	$	11,979	$	11,402
Right-of-use assets obtained in exchange for operating lease liabilities	$	5,040	$	2,270	$	7,232	$	24,478