LEASES AND RELATED PARTY LEASES

12 Months Ended

Dec. 31, 2020

The Company leases administrative, manufacturing, research and distribution facilities and vehicles through operating lease agreements. The Company has no finance leases as of December 31, 2020. Many of the Company's leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common-area or other maintenance costs). For vehicles, the Company has elected the practical expedient to group lease and non-lease components.

Most facility leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion, therefore, the majority of renewals to extend the lease terms are not included in the ROU assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates renewal options and when they are reasonably certain of exercise, the renewal period is included in the lease term.

As most of the Company's leases do not provide an implicit rate, the Company uses a collateralized incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments.

Total operating lease expense for the year ended December 31, 2020 and December 31, 2019, was $19.7 million and $19.6 million, respectively, which includes $0.3 million, in related party operating lease expense.

Supplemental balance sheet information related to operating leases at December 31, 2020 were as follows:


	December 31, 2020			December 31, 2019
	(In thousands, except lease term and discount rate)

ROU assets	$	83,635		$	94,530

Current lease liabilities	12,818			12,253
Non-current lease liabilities	88,118			97,504
Total lease liabilities	$	100,936		$	109,757

Weighted average remaining lease term (in years):

Leased facilities	11.6 years			12.8 years
Leased vehicles	2.3 years			2.6 years

Weighted average discount rate:
Leased facilities	4.6		%	5.4		%
Leased vehicles	2.3		%	3.2		%

Supplemental cash flow information related to leases was as follows for the year ended December 31, 2020 (in thousands):


	December 31, 2020		December 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15,226	$	11,469

ROU assets obtained in exchange for lease liabilities:
Operating leases	6,027		41,423

Future minimum lease payments under operating leases at December 31, 2020 were as follows:


	Related Parties		Third Parties		Total
	(In thousands)
2021	296		13,458		13,754
2022	296		13,992		14,288
2023	296		11,054		11,350
2024	296		10,254		10,550
2025	296		9,645		9,941
Thereafter	1,130		77,784		78,914
Total minimum lease payments	$	2,610	$	136,187	$	138,797
Less: Imputed interest					$	37,861
Total lease liabilities					100,936
Less: Current lease liabilities					12,818
Long-term lease liabilities					88,118

There were no future minimum lease payments under finance leases at December 31, 2020.

Related Party Leases

The Company leases its manufacturing facility in Plainsboro, New Jersey, from a general partnership that is 50% owned by a corporation whose stockholders are trusts, whose beneficiaries include family members of the Company’s former director. The term of the current lease agreement is through October 31, 2029 at an annual rate of approximately $0.3 million per year. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2029 through October 31, 2034 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2034 through October 31, 2039 at the fair market rental rate of the premises.