LEASES AND RELATED PARTY LEASES

3 Months Ended

Mar. 31, 2021

The Company leases administrative, manufacturing, research and distribution facilities and vehicles through operating lease agreements. The Company has no finance leases as of March 31, 2021. 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 Right of Use ("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 three months ended March 31, 2021 and March 31, 2020 was $5.3 million and $4.8 million respectively, which includes $0.1 million, in related party operating lease expense.

Supplemental balance sheet information related to operating leases were as follows:


	March 31, 2021			December 31, 2020
	(In thousands, except lease term and discount rate)

ROU assets	91,174			83,635

Current lease liabilities	13,900			12,818
Non-current lease liabilities	95,549			88,118
Total lease liabilities	$	109,449		$	100,936

Weighted average remaining lease term (in years):

Leased facilities	11.8 years			11.6 years
Leased vehicles	2.0 years			2.3 years

Weighted average discount rate:
Leased facilities	5.1		%	4.6		%
Leased vehicles	2.7		%	2.3		%

Supplemental cash flow information related to leases for the three months ended March 31, 2021 and 2020 were as follows:


	March 31, 2021		March 31, 2020
	(In thousands)		(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,761	$	3,229

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	9,662	$	5,808

Future minimum lease payments under operating leases at March 31, 2021 were as follows:


	Third Parties		Related Parties		Total
	(In thousands)
2021	$	11,637	$	222	$	11,859
2022	16,331		296		16,627
2023	12,949		296		13,245
2024	11,410		296		11,706
2025	10,813		296		11,109
2026	9,672		296		9,968
Thereafter	72,854		837		73,691
Total minimum lease payments	$	145,666	$	2,539	$	148,205
Less: Imputed interest					38,756
Total lease liabilities					109,449
Less: Current lease liabilities					13,900
Long-term lease liabilities					95,549

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 shareholders are trusts, whose beneficiaries include family members of the Company’s principal stockholder and 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.