Leases

3 Months Ended

Mar. 31, 2019

12. Leases

The Company has noncancelable operating leases for office, manufacturing facilities, warehouse space, automobiles and equipment expiring at various dates through 2023 and thereafter. As discussed in Footnote 1, the Company adopted ASC 842 as of January 1, 2019, using a current period adjustment method. In accordance with this method, the Company recognized a right of use asset of $9.4 million and an operating lease liability of $11.7 million as of January 1, 2019. As a result of using the current period adjustment method, the lease expense for three months ended March 31, 2019 and 2018 was recognized under ASC 842, and ASC 840, the previous standard, respectively.

The components of lease expense for the three months ended March 31, 2019 are as follows:

		Three Months Ended
		March 31, 2019
		(in thousands)
Operating lease cost	$	523
Short term lease cost		76
Sublease income		(102)
Total lease cost	$	497

Supplemental cash flow information related to the Company's operating leases was as follows

		Three Months Ended
		March 31, 2019
		(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	702

Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	-

Supplemental balance sheet information related to the Company's operating leases was as follows:

		March 31, 2019
		(in thousands)
Operating lease right-of use assets	$	9,106

Current portion, operating lease liabilities	$	2,297
Operating lease liabilities, long term		9,062
Total operating lease liabilities	$	11,359

Weighted average remaining lease term		8.6	years
Weighted average discount rate		9.2%

Rent payments for continuing operations were approximately $0.5 million for the three months ended March 31, 2018. Future minimum lease payments for operating leases, with initial or remaining terms in excess of one year at March 31, 2019, are as follows:

		Operating
		Leases
		(in thousands)
2020	$	2,297
2021		2,268
2022		1,862
2023		1,813
2024		1,795
Thereafter		6,970
Total lease payments		17,005
Less interest		(5,646)
Total operating lease liabilities		11,359