NOTE

— LEASES

The Company leases certain facilities and equipment. On

January 1, 2019,

the Company adopted ASU

2016

02,

Leases (“Topic

842”

) and ASU

2018

using the cumulative effect method and has elected to apply each available practical expedient. The adoption of Topic

842

resulted in the Company recognizing operating lease liabilities totaling

$19,508

with a corresponding right-of-use (“ROU”) asset of

$17,613

based on the present value of the minimum rental payments of such leases. The variance between the ROU asset balance and the lease liability is a deferred rent liability that existed prior to the adoption of Topic

842

and was offset against the ROU asset balance during the adoption. The discount rates used for leases accounted for under ASC

842

are based on an interest rate yield curve developed for the leases in the Company's lease portfolio.

The Company has elected to apply the short-term lease exception to all leases of

one

year or less. During the

three

months ended

March 31, 2021

and

March 31, 2020,

the Company had an additional operating lease that resulted in right-of-use assets obtained in exchange for lease obligations of

$907

and

$4,380,

respectively. Additionally, during the

three

months ended

March 31, 2021

, the Company had additional finance leases that resulted in property, plant, and equipment obtained in exchange for lease obligations of

$263.

Some of the Company's facility leases include options to renew. The exercise of the renewal options is typically at the Company's discretion. The Company regularly evaluates the renewal options and includes them in the lease term when the Company is reasonably certain to exercise them.

Quantitative information regarding the Company's leases is as follows:

	Three Months Ended March 31,
	2021			2020
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	186		$	129
Interest on finance lease liabilities		68			26
Total finance lease costs		254			155
Operating lease cost components:
Operating lease cost		759			765
Short-term lease cost		196			132
Variable lease cost (1)		230			195
Sublease income		(46	)		(45	)
Total operating lease costs		1,139			1,047

Total lease cost	$	1,393		$	1,202

Supplemental cash flow information related to our operating leases is as follows for the three months ended March 31, 2021 and 2020:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	887			888

Weighted-average remaining lease term-finance leases at end of period (in years)		1.9			1.2
Weighted-average remaining lease term-operating leases at end of period (in years)		9.5			10.5
Weighted-average discount rate-finance leases at end of period		9.0	%		9.2	%
Weighted-average discount rate-operating leases at end of period		8.5	%		8.8	%

(

)

Variable lease costs consist primarily of taxes, insurance, utilities, and common area or other maintenance costs for the Company's leased facilities and equipment.

As of

March 31, 2021

, future minimum lease payments under finance leases and operating leases were as follows:

	Finance			Operating
	Leases			Leases			Total
2021	$	1,317		$	2,668		$	3,985
2022		1,400			3,474			4,874
2023		732			3,388			4,120
2024		151			2,933			3,084
2025		84			3,015			3,099
2026 and thereafter		—			17,103			17,103
Total lease payments		3,684			32,581			36,265
Less—portion representing interest		(337	)		(11,090	)		(11,427	)
Present value of lease obligations		3,347			21,491			24,838
Less—current portion of lease obligations		(1,456	)		(1,743	)		(3,199	)
Long-term portion of lease obligations	$	1,891		$	19,748		$	21,639