Leases

9 Months Ended

Sep. 30, 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 September 30,				Nine months ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	390	$	357	$	1,145	$	1,072

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


	September 30, 2021		December 31, 2020
Operating lease right of use assets	$	3,631	$	2,754

Current operating lease liabilities(A)	$	1,137	$	1,023
Noncurrent operating lease liabilities(B)	2,453		1,670
Total operating lease liabilities	$	3,590	$	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 in the Consolidated Balance Sheets.

The following table presents certain information related to lease terms and discount rates for leases as of September 30, 2021 and December 31, 2020:


Operating leases	September 30, 2021		December 31, 2020
Weighted average remaining lease term (in years):	3.8		3.5

Weighted average discount rate:	5.5	%	5.9	%

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


	Nine months ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases(C)	$	1,145	$	1,072

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

Maturities of operating lease liabilities were as follows (in thousands):


	September 30, 2021		December 31, 2020
2021 (remainder of year)	$	373	$	1,215
2022	1,143		811
2023	1,044		706
2024	1,050		705
2025 and beyond	629		—
Total lease payments	4,239		3,437
Less: imputed interest	(649)		(744)
Total lease obligations	3,590		2,693
Less: current obligations	(1,137)		(1,023)
Long-term lease obligations	$	2,453	$	1,670