|12 Months Ended|
Dec. 31, 2020
The Company has entered into operating leases primarily for real estate. These leases are for the Company's operations, production, warehouse, sales, marketing and back office functions. On July 27, 2020, the Company entered into a lease termination agreement for one of its facilities in San Diego, which was effective August 31, 2020. The Company derecognized the related operating lease obligation of $5.1 million and operating lease asset of $4.7 million as of August 31, 2020, and recorded an associated gain from lease termination of $0.4 million, which is recorded as a component of selling, general and administrative expense in the consolidated statements of operations for the year ended December 31, 2020. As of December 31, 2020, total operating lease assets and operating lease liabilities were $3.1 million and $4.1 million, respectively.
The Company recognized total lease costs of $1.0 million and $1.5 million for the year ended December 31, 2020 and 2019, respectively. Total lease costs was mostly comprised of operating lease costs. Short-term lease costs related to short-term operating leases and variable lease costs were immaterial.
Because the rate implicit in each lease is not readily determinable, the Company uses the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment, which the Company determined based on comps obtained from lenders for similar financing. The Company has certain contracts for real estate which may contain lease and nonlease components which it has elected to treat as a single lease component. Cash paid for operating lease liabilities for the year ended December 31, 2020 was $1.1 million. Information related to the Company's operating lease assets and related lease liabilities were as follows:
Maturities of lease liabilities as of December 31, 2020 were as follows (in thousands):
The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef