COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office facilities under noncancelable operating leases that expire on various dates through 2028, some of which may include options to extend the leases for up to 12 years . The components of lease expense are presented as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In thousands) Operating lease costs $ 1,274 $ 1,161 $ 3,776 $ 2,909 The components of lease liabilities are presented as follows: September 30, 2020 December 31, 2019 (In thousands) Operating lease liabilities, current (Accrued liabilities) $ 4,245 $ 3,170 Operating lease liabilities, noncurrent (Other liabilities) 12,417 9,542 Total operating lease liabilities $ 16,662 $ 12,712 Supplemental lease information: Weighted average remaining lease term 5.6 years 5.5 years Weighted average discount rate 8.1% 8.6% Supplemental cash flow and other information related to operating leases, are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,252 $ 1,019 $ 3,411 $ 2,613 Non-cash investing activities: Lease liabilities arising from obtaining right-of-use assets $ 3,798 $  $ 6,739 $ 4,834 Undiscounted cash flows of operating lease liabilities as of September 30, 2020 are as follows: Lease Amounts (In thousands) Year: 2020 (remaining three months) $ 1,345 2021 5,436 2022 4,155 2023 3,518 2024 2,523 2025 and thereafter 2,686 Total lease payments 19,663 Less: imputed lease interest (3,001 ) Total lease liabilities $ 16,662 Purchase Obligations The Company has contractual obligations related to component inventory that its primary contract manufacturer procures on its behalf in accordance with its production forecast as well as other inventory related purchase commitments. As of September 30, 2020 , these purchase obligations totaled approximately $115.1 million . Letter of Credits The Company had a standby letter of credit that expired on April 30, 2020 in the aggregate amount of $44.7 million , primarily in connection with one of its customer contracts. The letter of credit served as a performance security for product delivered to the customer in the first quarter of 2020. No amounts were drawn against this letter of credit. As of September 30, 2020 , the Company has no letter of credit outstanding. Litigation The Company is subject to various legal proceedings relating to claims arising out of its operations that have not been fully resolved. The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against the Company in a reporting period for amounts above managements expectations, the Companys business, results of operations, financial position and cash flows for that reporting period could be materially adversely affected. As of October 27, 2020 , the Company is not currently a party to any matters that the management expects will have an adverse material effect on the Companys consolidated financial position, results of operations or cash flows. Contingencies On March 26, 2020, the Office of the United States Trade Representative (the USTR) announced certain exclusion requests related to tariffs on Chinese imported microinverter products that fit the dimensions and weight limits within a Section 301 Tariff exclusion under U.S. note 20(ss)(40) to subchapter III of chapter 99 of the Harmonized Tariff Schedule of the United States (the Tariff Exclusion). The Tariff Exclusion applies to covered products under the China Section 301 Tariff Actions (Section 301 Tariffs) taken by the USTR exported from China to the United States from September 24, 2018 until August 7, 2020. Accordingly, the Company has sought refunds totaling approximately $39 million plus accrued interest on tariffs previously paid from September 24, 2018 to March 31, 2020 for certain microinverters that qualify for the Tariff Exclusion. The refund request is subject to review and approval by the U.S. Customs and Border Protection; therefore, the Company has assessed the probable loss recovery in the three and nine months ended September 30, 2020 is equal to the approved refund requests available to us prior to issuance of the financial statements on October 27, 2020. As of September 30, 2020 , the Company had received $16.0 million of tariff refunds and accrued for $7.0 million tariff refunds that were approved, however, not yet received on or before September 30, 2020 . As of both the three and nine months ended September 30, 2020 , the Company has recorded $23.0 million as a reduction to cost of revenues in the Companys condensed consolidated statements of operations as the approved refunds relate to paid tariffs previously recorded to cost of revenues, therefore, the Company recorded the corresponding approved tariff refunds as credits to cost of revenues in the current period. T h e tariff refund receivable of $7.0 million is recorded as a reduction of accounts payable to Flex Ltd. and affiliates (Flex), the Companys manufacturing partner and the importer of record who will first receive the tariff refunds, on the Companys condensed consolidated balance sheet as of September 30, 2020 . Potential tariff refunds not recorded as of September 30, 2020 totaled approximately $16.0 million plus accrued interest and will be recognized as a reduction to cost of revenues if and when approved. Although the Company feels its requests for refunds are supportable, it cannot be sure such requests will not be challenged by the government. The Company is also unable to predict the timing of receipt of any amounts approved. The Tariff Exclusion expired on August 7, 2020 and those microinverter products now are subject to tariffs. The Company continues to pay Section 301 Tariffs on its storage and communication products and other accessories imported from China which are not subject to the Tariff Exclusion.