Leases

9 Months Ended

Sep. 30, 2019

12. Leases

The Company has noncancelable operating leases for office, manufacturing facilities, warehouse space, automobiles and equipment expiring at various dates through 2024 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 nine months ended September 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 nine months ended September 30, 2019 are as follows:

	Three Months Ended			Nine Months Ended
	September 30, 2019			September 30, 2019
	(in thousands)			(in thousands)
Operating lease cost	$	523		$	1,561
Short term lease cost		29			156
Sublease income		(104)			(309)
Total lease cost	$	448		$	1,408

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

	Nine Months Ended
	September 30, 2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,815

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:

	September 30, 2019
	(in thousands)
Operating lease right-of use assets	$	8,497

Current portion, operating lease liabilities	$	2,424
Operating lease liabilities, long term		8,342
Total operating lease liabilities	$	10,766

Weighted average remaining lease term		8.4	years
Weighted average discount rate		9.2%

Future minimum lease payments for operating leases, with initial or remaining terms in excess of one year at September 30, 2019, are as follows:

	Operating
	Leases
	(in thousands)
2020	$	2,424
2021		1,987
2022		1,829
2023		1,783
2024		1,740
Thereafter		6,125
Total lease payments		15,888
Less interest		(5,122)
Total operating lease liabilities	$	10,766