|12 Months Ended|
Dec. 31, 2019
NOTE 9 – LEASES
In January 2019, the Company entered into a lease agreement for an additional 57,000 square feet of administrative office and R&D space in Austin, Texas. The lease commenced March 2019 and expires August 2028 and does not contain an option to renew. The tables below include the impact of this lease. Upon the commencement of the lease, the Company recorded an operating lease ROU asset and a lease liability of $7.2 million. The Company subsequently adjusted the lease liability to $7.4 million due to changes in cash receipts related to a tenant improvement allowance. In connection with entering into the lease and in lieu of a cash deposit, the Company obtained a letter of credit of $3.0 million. Additionally, the Company has recorded an asset retirement obligation as a result of this lease which has a balance of $0.4 million at December 31, 2019.
Changes in the carrying amounts of the Company’s AROs for the years ended December 31, 2019 and 2018 are shown below (in thousands):
At December 31, 2019, the Company did not have any operating and finance leases that have not yet commenced.
The components of lease expense for the year ended December 31, 2019 were as follows (in thousands):
Sublease rental income is recorded in Interest and other income, net, on the Company’s Condensed Consolidated Statement of Operations.
The following table summarizes the balance sheet classification of leases at December 31, 2019 (in thousands):
The following table presents other information on leases as of December 31, 2019:
Future minimum payments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year as of December 31, 2019 (in thousands):
Supplemental cash flow information related to the Company’s leases were as follows for the year ended December 31, 2019 (in thousands):