Operating Leases

As of

December 31, 2019,

the Company had

two

primary leases, its real estate leases in Bedford, Massachusetts and Padova, Italy. The Company leases approximately

134,000

square feet of administrative, research and development, and manufacturing space in Bedford, Massachusetts (the “Bedford lease”), and approximately

33,000

square feet of office, research and development, training, and warehousing space in Padova, Italy (the “Padova lease”). The current term of the Bedford lease extends to

2022

with several lease renewal options into

2038,

and the current term of the Padova lease extends to

2032,

with a right to terminate at the Company’s option in

2026

without penalty.

The Company identified and assessed significant assumptions in recognizing the right-of-use asset and lease liability on

January 1, 2019

as follows:

Incremental borrowing rate

. The Company derives its incremental borrowing rate from information available at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate represents a collateralized rate of interest the Company would have to pay to borrow over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s lease agreements do

not

provide implicit rates. As the Company did

not

have any external borrowings at the transition date with comparable terms to its lease agreements, the Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of the lease. The weighted average discount rate at

December 31, 2019

4.1%.

Lease term.

The Company applied the hindsight practical expedient and as a result the lease term for the Bedford lease was determined to include all lease renewal options. There were

changes to the lease terms for its other leases. For the Padova lease, the Company considered the termination option when determining the lease term. The weighted average lease term at

December 31, 2019

16.8

years.

The components of lease expense and other information are as follows:

	For the twelve months ended December 31, 2019
Lease cost
Operating lease cost	$	2,087
Short-term lease cost		6
Variable lease cost		216
Total lease cost	$	2,309

Other information
Operating cash flows from operating leases	$	1,980

Future commitments due under these lease operating agreements as of

December 31, 2019

are as follows:

Years ended December 31,
2020	$	2,025
2021		2,024
2022		1,981
2023		1,965
2024		1,924
Thereafter		21,374
Present value adjustment		(8,785	)
Present value of lease payments		22,508
Less current portion included in Accrued expenses and other current liabilities		(1,141	)
Operating lease liabilities	$	21,367

The following table summarizes the future minimum payments due for the Company’s operating leases under the prior lease guidance without the hindsight practical expedient for each of the next

five

years and the total thereafter as of

December 31, 2018:

Years ended December 31,
2019	$	1,879
2020		1,917
2021		1,924
2022		1,672
2023		414
2024 and thereafter		897
Total	$	8,703