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Leases
 12 Months Ended
Dec. 31, 2020
Leases  
Leases
7. Leases
 
 
The Company has operating
 
leases with fixed payment
 
terms primarily associated with
 
buildings and warehouses. The
 
Company's
leases have
 
remaining lease
 
terms of
 
less than
 
one year
s to
 
four years
, some
 
of which
 
include options
 
to extend
 
the lease
for
 
five years
. Operating leases are included
 
in Right-of-use ("ROU") assets and
Other accrued liabilities
 
and
Other non-current
liabilities
 
on the Consolidated
 
Balance Sheets. ROU
 
assets represent the right
 
to use an underlying
 
asset for the lease
 
term and
lease liabilities represent the obligation to make lease payments arising
 
from the lease.
 
 
The Company used the applicable incremental
 
borrowing rate at implementation date to measure
 
lease liabilities and ROU assets.
The incremental borrowing rate used by
 
the Company was based on baseline rates
 
and adjusted by the credit spreads
commensurate with
 
the Company
 
’s secured
 
borrowing rate.
 
At each
 
reporting period
 
when there is
 
a new lease
 
initiated, the
Company will utilize
 
its incremental borrowing
 
rate to perform
 
lease classification
 
tests on
 
lease components and
 
to measure
ROU assets and lease liabilities.
 
 
The following table provides information related to the components of
 
lease expense as of December 31:
2020
2019
Operating lease cost
$
1,430,000
$
1,430,000
Total net lease cost
$
1,430,000
$
1,430,000
The following table provides
 
information related to other
 
supplemental balance sheet information
 
related to leases as
 
of December
31:
2020
2019
Operating lease:
Operating lease right of use assets
$
2,754,000
$
4,484,000
Total operating lease right of
 
use assets
$
2,754,000
$
4,484,000
Current operating lease liabilities
(A)
$
1,023,000
$
1,304,000
Noncurrent operating lease liabilities
(B)
1,670,000
3,119,000
Total operating lease liabilities
$
2,693,000
$
4,423,000
Current operating lease liability included in "Other Current Accrued Liabilities" on the Consolidated
 
Balance Sheet
.
Noncurrent operating lease liability included in "Other Non
 
-Current Liabilities" on the Consolidated Balance Sheet.
Weighted average remaining
 
lease term (in years):
Operating leases
3.5
4.0
Weighted average discount
 
rate:
Operating lease
5.9
%
4.9
%
Other information related to leases as of December 31:
2020
2019
Cash Paid for amounts included in the measurement of
 
lease liabilities
Operating cash flow from operating leases
(C)
$
1,455,000
$
1,455,000
Cash flow from operating lease included in "Prepaid and other assets"
 
on the Consolidated Statements of Cash Flows.
 
 
As of December
 
31, 2020, maturities of lease liabilities were as follows:
Operating Leases
2021
$
1,215,000
2022
811,000
2023
706,000
2024
705,000
2025
—
Total lease payments
3,437,000
Less: imputed interest
(744,000)
Total lease obligations
2,693,000
Less: current obligations
(1,023,000)
Long-term lease obligations
$
1,670,000
As of December
 
31, 2019, maturities of lease liabilities were as follows:
Operating Leases
2020
$
1,433,000
2021
1,174,000
2022
1,102,000
2023
1,000,000
2024
530,000
Total lease payments
5,239,000
Less: imputed interest
(816,000)
Total lease obligations
4,423,000
Less: current obligations
(1,304,000)
Long-term lease obligation
$
3,119,000