Quarterly report pursuant to Section 13 or 15(d)

Right-of-use Asset and Lease Liability

v3.19.3
Right-of-use Asset and Lease Liability
9 Months Ended
Sep. 30, 2019
Right-of-use Asset and Lease Liability  
Right-of-use Asset and Lease Liability

6.            Right-of-use Asset and Lease Liability:

 

The Company has entered into operating leases for office and warehouse facilities, which have terms at lease commencement that range from 3 years to 11 years. The Company determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets and lease expense for these leases is recognized on a straight-line basis over the lease term.

 

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of the lease payments over the lease term. As our leases do not provide a readily determinable implicit rate, we use an incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The operating lease asset also includes any lease payments made and excludes lease incentives. Operating lease expense is recognized on a straight-line basis over the lease term and included in selling, general and administrative expenses.

 

Information related to the Company’s right-of-use assets and related lease liabilities were as follows:

 

 

 

 

 

 

 

Nine months ended

 

 

September 30,

 

 

2019

Cash paid for operating lease liabilities

 

$

371

Right-of-use assets obtained in exchange for new operating lease obligations (1)

 

$

2,163

Weighted-average remaining lease term

 

 

7.4 years

Weighted-average discount rate

 

 

3.4%

 

(1)

Represents operating leases existing on January 1, 2019 and recognized as part of the Company’s adoption of ASU 2016-02. No new operating leases commenced during the nine months ended September 30, 2019.

 

 

Maturities of lease liabilities as of September 30, 2019 were as follows:

 

 

 

 

 

2019 (excluding the nine months ended September 30, 2019)

    

$

88

2020

 

 

438

2021

 

 

405

2022

 

 

414

2023

 

 

463

Thereafter

 

 

1,573

 

 

 

3,381

Less: imputed interest

 

 

(734)

Total lease liabilities

 

$

2,647

 

 

 

 

Lease liabilities, current portion

 

 

397

Lease liabilities, net of current portion

 

 

2,250

Total lease liabilities

 

$

2,647