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Lease Liabilities

12 Months Ended

Dec. 31, 2020

Note 9—Lease Liabilities

We have operating leases related to our office and laboratory space. The initial term of the leases is through November 2027 and we have two options to extend the lease term, each by five years. We have finance leases for certain laboratory and office equipment that have lease terms expiring through December 2024.

Lease-related assets and liabilities recorded on the balance sheet are as follows:


	December 31,
	2020			2019

	(In thousands)
Assets
Operating lease assets	$	25,526		$	27,082
Finance lease assets, net		1,822			2,973
Total lease assets	$	27,348		$	30,055

Liabilities
Current:
Operating leases	$	2,740		$	2,282
Finance leases		1,042			1,222
Non-current:
Operating leases		28,032			30,772
Finance leases		738			1,546
Total lease liabilities	$	32,552		$	35,822

Weighted-average remaining lease term
Operating leases		6.8 years			7.8 years
Finance leases		1.9 years			2.5 years
Weighted-average discount rate
Operating leases		12.85	%		12.85	%
Finance leases		11.85	%		12.17	%

The components of total lease costs are as follows:


	Year Ended December 31,
	2020		2019

	(In thousands)
Lease cost
Operating lease cost	$	6,055	$	4,604
Finance lease cost:
Amortization		1,367		1,340
Interest		295		337
Variable lease cost		2,893		2,320
Sublease income		(1,300)		(913)
Net lease cost	$	9,310	$	7,688

The supplemental cash flow information related to leases during 2020 is as follows:


	Year Ended December 31,
	2020		2019

	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	10,103	$	6,951
Operating cash flows used for finance leases	$	295	$	337
Financing cash flows used for finance leases	$	1,195	$	1,139

The future maturities of our lease liabilities as of December 31, 2020 are as follows:


	Operating		Finance
	Leases		Leases

	(In thousands)
2021	$	6,536	$	1,205
2022		6,678		603
2023		6,823		168
2024		6,972		30
2025		6,998		—
Thereafter		12,593		—
Total undiscounted lease payments		46,600		2,006
Less interest		(15,828)		(226)
Total lease liabilities	$	30,772	$	1,780

As of December 31, 2020, we have committed to additional leased space in the building located at 201 Elliott Avenue West, Seattle, Washington (the “Omeros Building”) that will commence in February 2021. The lease terms are consistent with our existing leases in The Omeros Building, and the monthly lease payments are approximately $0.1 million.