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Commitments and Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies  
Commitments and Contingencies

Note 16. Commitments and Contingencies

 

(a)          Lease Commitments

 

We lease manufacturing and office facilities and certain equipment under operating and capital leases that expire through 2037. Rental expense was $4.8 million, $4.6 million and $3.9 million under operating leases for the years ended December 31, 2019, 2018 and 2017, respectively. Future minimum lease commitments on non‑cancelable operating leases for the year ended December 31, 2019 are as follows:

 

 

 

 

 

 

 

    

Operating

 

 

 

Leases

 

 

 

(in thousands)

 

2020

 

$

3,511

 

2021

 

 

1,838

 

2022

 

 

637

 

2023

 

 

128

 

2024

 

 

68

 

Thereafter

 

 

206

 

Total operating lease payments

 

$

6,388

 

 

(b)          Sale Leaseback Financing Obligation

 

In addition to the lease commitments as described above, in 2015 we entered into a 22-year lease agreement relating to our corporate headquarters in Beverly, Massachusetts. The following table relates to the cash payment schedule associated with this lease obligation as of December 31, 2019:

 

 

 

 

 

 

 

    

Lease

 

 

 

Obligation

 

 

 

(in thousands)

 

2020

 

$

5,720

 

2021

 

 

5,848

 

2022

 

 

5,980

 

2023

 

 

6,114

 

2024

 

 

6,252

 

Thereafter

 

 

79,653

 

Total finance lease payments

 

$

109,567

 

Less interest portion

 

 

(61,019)

 

     Sale leaseback obligation

 

$

48,548

 

 

 

(c)          Purchase Commitments

 

We have contracts and purchase orders for inventory and other expenditures of $62.4 million at December 31, 2019.

 

(d)          Litigation

 

We are not presently a party to any litigation that we believe might have a material adverse effect on our business operations. We are, from time to time, a party to litigation that arises in the normal course of our business operations.

 

(e)          Indemnifications

 

Our system sales agreements typically include provisions under which we agree to take certain actions, provide certain remedies and defend our customers against third‑party claims of intellectual property infringement under specified conditions and to indemnify customers against any damage and costs awarded in connection with such claims. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements.