Leases

6 Months Ended

Jun. 30, 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 six months ended June 30, 2019 and 2018 was recognized under ASC 842, and ASC 840, the previous standard, respectively.

The components of lease expense for the three and six months ended June 30, 2019 are as follows:

		Three Months Ended			Six Months Ended
		June 30, 2019			June 30, 2019
		(in thousands)			(in thousands)
Operating lease cost	$	515		$	1,038
Short term lease cost		51			127
Sublease income		(103)			(205)
Total lease cost	$	463		$	960

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

		Six Months Ended
		June 30, 2019
		(in thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,367

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:

		June 30, 2019
		(in thousands)
Operating lease right-of use assets	$	8,846

Current portion, operating lease liabilities	$	2,295
Operating lease liabilities, long term		8,714
Total operating lease liabilities	$	11,009

Weighted average remaining lease term		8.5	years
Weighted average discount rate		9.2%

Rent payments for continuing operations were approximately $1.4 million for the six months ended June 30, 2018. Future minimum lease payments for operating leases, with initial or remaining terms in excess of one year at June 30, 2019, are as follows:

	Operating
	Leases
	(in thousands)
2020	$	2,295
2021		2,108
2022		1,852
2023		1,804
2024		1,798
Thereafter		6,543
Total lease payments		16,400
Less interest		(5,391)
Total operating lease liabilities	$	11,009