Leases

3 Months Ended

Mar. 31, 2021

LEASES

The Company has operating leases with fixed payment terms for certain buildings and warehouses. The Company's leases have remaining lease terms of less than one year to four years, some of which include options to extend the lease for five years. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued other liabilities and other non-current liabilities in the Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our 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 components of lease expense were as follows (in thousands):


	Three Months Ended March 31,
	2021		2020

Operating lease cost	$	368	$	357
Total net lease cost	$	368	$	357

Other supplemental balance sheet information related to leases was as follows (in thousands):


	March 31, 2021		December 31, 2020
Operating leases:
Operating lease right of use assets	$	4,346	$	2,754
Total operating lease right of use assets	$	4,346	$	2,754

Current operating lease liabilities(A)	$	1,289	$	1,023
Noncurrent operating lease liabilities(B)	3,017		1,670
Total operating lease liabilities	$	4,306	$	2,693

(A)Current operating lease liabilities are included in accrued other liabilities on the Consolidated Balance Sheets.

(B)Noncurrent operating lease liabilities are included in other non-current liabilities on the Consolidated Balance Sheets.

The following table presents certain information related to lease terms and discount rates for leases as of March 31, 2021 and December 31, 2020:


	March 31, 2021		December 31, 2020
Weighted average remaining lease term (in years):
Operating leases	4.2		3.5

Weighted average discount rate:
Operating leases	5.5	%	5.9	%

Other information related to leases were as follows (in thousands) :


	Three Months Ended March 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases(C)	$	368	$	357

(C)Cash flow from operating lease included in prepaid and other assets on the Consolidated Statements of Cash Flows.

As of March 31, 2021, maturities of lease liabilities were as follows (in thousands):


	Operating Leases
2021 (remainder of year)	$	1,130
2022	1,157
2023	1,058
2024	1,063
2025	628
Total lease payments	5,036
Less: imputed interest	(730)
Total lease obligations	4,306
Less: current obligations	1,289
Long-term lease obligations	$	3,017

As of December 31, 2020, maturities of lease liabilities were as follows (in thousands):


	Operating Leases
2021	$	1,215
2022	811
2023	706
2024	705
2025	—
Total lease payments	3,437
Less: imputed interest	(744)
Total lease obligations	2,693
Less: current obligations	(1,023)
Long-term lease obligations	$	1,670