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Leases (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Supplemental Balance Sheet Information Related to Operating Leases

Supplemental balance sheet information related to operating leases is as follows:

		June 30,		January 1,
(In thousands)	Classification	2019		2019 ⁽¹⁾
Assets
Operating lease asset	Other assets	$	8,838	$	10,322
Total lease assets		$	8,838	$	10,322

Liabilities
Current operating lease liability	Accrued expenses	$	2,514	$	2,948
Non-current operating lease liability	Other non-current liabilities		6,349		7,374
Total lease liability		$	8,863	$	10,322

⁽¹⁾

^{Reflects the adoption of the new lease accounting standard on January 1, 2019.}

Components of Lease Expense included in Condensed Consolidated Statement of Income

The components of lease expense included in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2019 are as follows:

(In thousands)	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Selling, general and administrative expenses	$	349	$	698
Research and development expenses		430		884
Cost of sales		17		33
Total operating lease expense	$	796	$	1,615

Schedule of Maturity of Operating Lease Liabilities

As of June 30, 2019, operating lease liabilities included on the Condensed Consolidated Balance Sheet by future maturity are as follows:

(In thousands)	Amount
Remainder of 2019	$	1,583
2020		2,203
2021		2,047
2022		1,560
2023		1,173
Thereafter		756
Total lease payments		9,322
Less: Interest		(459	)
Present value of lease liabilities	$	8,863

Future Minimum Rental Payments under Non-Cancelable Operating Leases, Including Renewals Determined to be Reasonably Assured, with Original Maturities of Greater than 12 Months

As of December 31, 2018, future minimum rental payments under non-cancelable operating leases, including renewals determined to be reasonably assured as of December 31, 2018, with original maturities of greater than 12 months, are as follows:

(In thousands)	Amount ⁽¹⁾
2019	$	3,873
2020		3,580
2021		2,771
2022		2,053
2023		1,317
Thereafter		762
Total	$	14,356

⁽¹⁾

^{Certain renewal options were subsequently determined to not be reasonably assured of renewal upon the Company’s adoption of the new lease accounting standard on January 1, 2019.}

Schedule of Weighted Average Remaining Lease Term and Weighted Average Discount Rate

Our leases do not provide an implicit borrowing rate and therefore we use an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We used the incremental borrowing rate on January 1, 2019, for operating leases that commenced on or prior to that date. The incremental borrowing rate was determined on a portfolio basis by grouping leases with similar terms as well as grouping leases based on a U.S. dollar or Euro functional currency. The actual rate is then determined based on a credit spread over LIBOR as well as the Bloomberg Curve Matrix for the U.S. Communications section.

	As of June 30, 2019
Weighted average remaining lease term (years)
Operating leases with USD functional currency		2.9
Operating leases with Euro functional currency		4.8
Weighted average discount rate
Operating leases with USD functional currency		4.61	%
Operating leases with Euro functional currency		1.85	%

Schedule of Supplemental Cash Flow Information Related to Operating Leases

Supplemental cash flow information related to operating leases was as follows:

(In thousands)	As of June 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities / assets
Cash used in operating activities related to operating leases	$	(797	)

Right-of-use assets obtained in exchange for lease obligations	$	10,396

Components of Net Investment in Sales-Type Leases

As of June 30, 2019 and December 31, 2018, the components of the net investment in sales-type leases were as follows:

	June 30,		December 31,
(In thousands)	2019		2018
Current minimum lease payments receivable (included in other receivables)	$	6,360	$	11,339
Non-current minimum lease payments receivable (included in other assets)		1,286		1,670
Total minimum lease payments receivable		7,646		13,009
Less: Current unearned revenue		495		631
Less: Non-current unearned revenue		269		473
Net investment in sales-type leases	$	6,882	$	11,905

Schedule of Components of Sales-type Lease Gross Profit and Interest and Dividend Income Included in Condensed Consolidated Statements of Income

The components of sales-type lease gross profit recognized at the lease commencement date and interest and dividend income, included in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2019, are as follows:

(In thousands)	Classification	Three Months Ended June 30, 2019		Six Months Ended June 30, 2019
Sales type leases	Sales - Network Solutions	$	109	$	1,621
Sales type leases	Cost of sales - Network Solutions		44		635
Sales type leases	Gross profit	$	65	$	986

Sales type leases	Interest and dividend income	$	99	$	186

Schedule of Future Minimum Lease Payments to be Received from Sales-Type Leases

As of June 30, 2019, future minimum lease payments to be received from sales-type leases are as follows:

(In thousands)	Amount
Remainder of 2019	$	5,705
2020		1,112
2021		525
2022		220
2023		81
Thereafter		3
Total	$	7,646