2.2.0.25falsefalse0206 - Disclosure - Property and Equipmenttruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011
USD ($)
USD ($) / shares
$Jan-01-2011_Mar-31-2011http://www.sec.gov/CIK0001107332duration2011-01-01T00:00:002011-03-31T00:00:00SharesStandardhttp://www.xbrl.org/2003/instancesharesxbrli0USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0us-gaap_PropertyPlantAndEquipmentNetAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalse3false0us-gaap_PropertyPlantAndEquipmentDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" -->
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 12pt"><b>6. PROPERTY AND EQUIPMENT</b>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Property and equipment consisted of the following:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>March 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="6"><b>(In thousands)</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Furniture and office equipment
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">4,608</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">4,591</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Laboratory and manufacturing equipment
</div></td>
<td> </td>
<td> </td>
<td align="right">20,990</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">15,653</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Computer equipment and software
</div></td>
<td> </td>
<td> </td>
<td align="right">48,599</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">44,490</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Leasehold improvements
</div></td>
<td> </td>
<td> </td>
<td align="right">139,025</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">118,102</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Buildings
</div></td>
<td> </td>
<td> </td>
<td align="right">22,030</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">18,053</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Construction in progress
</div></td>
<td> </td>
<td> </td>
<td align="right">63,288</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">93,033</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">298,540</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">293,922</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Less accumulated depreciation and amortization
</div></td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(54,334</td>
<td nowrap="nowrap">)</td>
<td> </td>
<td nowrap="nowrap" align="left"> </td>
<td align="right">(47,033</td>
<td nowrap="nowrap">)</td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">244,206</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">246,889</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In August, 2005, we entered into an agreement to lease approximately 158,000 square feet of
commercial manufacturing space in Morris Plains, New Jersey (the “New Jersey Facility”). The lease
term is seven years, and we have the option to extend the lease for two ten-year periods and one
five-year period, with the same terms and conditions except for rent, which adjusts upon renewal to
market rate. The aggregate rent payable under the initial lease term is $7.2 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The New Jersey lease requires us to provide the landlord with a letter of credit. We provided
Wells Fargo, the bank that issued the letter of credit on our behalf, a security deposit to
guarantee the letter of credit. The deposit of $1.9 million is recorded as a long-term investment
as of March 31, 2011 and December 31, 2010 on our consolidated balance sheets.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     As part of an agreement with the Township of Hanover relating to the permitting of the
expansion of our New Jersey Facility, which was substantially completed in May 2010, we had $1.9
million in long-term investments being held as a security deposit to ensure completion of certain
improvements at the property as of December 31, 2010. In March 2011, this security deposit was
reduced to $0.3 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In August 2009, we entered into a lease with Knickerbocker Properties, Inc. XLVI for existing
building space totaling approximately 184,000 rentable square feet in Orange County, California
(the “Orange County Facility”) for use by us as a manufacturing facility following build-out. The
initial lease term is ten and a half years, with two renewal terms of five years each. The lease
includes a one-time purchase option exercisable during the first three years of the lease term. The
aggregate rent payable under the initial lease term is $13.6 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In July 2009, we entered into a lease with Majestic Realty Co. for building space totaling
approximately 160,000 square feet in Atlanta, Georgia (the “Atlanta Facility”) for use by us as a
manufacturing facility following build-out. The lease commenced when we took possession of the
building upon substantial completion of construction of the building shell in March 2010. The
initial lease term is ten and a half years, with five renewal terms of five years each. The
aggregate rent payable for the Atlanta Facility under the initial lease term is $6.7 million.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The Orange County Facility and Atlanta Facility leases required us to provide the landlords
with letters of credit in the total amount of $2.4 million as security deposits. The Atlanta
Facility letter of credit totaling $222,000 was returned to us in May 2010. The Orange County
Facility letter of credit was $2.2 million as of March 31, 2011 and December 31, 2010, and is
secured by a deposit of $2.2 million. This deposit was recorded as a long-term investment on our
consolidated balance sheets.
</div>
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</div>
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<div style="font-family: 'Times New Roman',Times,serif">
<div align="left" style="font-size: 10pt; margin-top: 6pt">     The facility leases have provisions requiring that we restore the buildings to their original
condition upon lease termination. Accordingly, we have accrued the estimated costs of dismantlement
and restoration as these obligations accumulate. The following table is a roll forward of our asset
retirement obligations:
</div>
<div align="center">
<table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<tr valign="bottom">
<td width="76%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
<td width="5%"> </td>
<td width="1%"> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Three Months</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"> </td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>Year Ended</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>March 31,</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td>
<td> </td>
</tr>
<tr style="font-size: 8pt" valign="bottom">
<td nowrap="nowrap" align="left" colspan="1" style="border-bottom: 1px solid #000000"><b>Description (in thousands)</b></td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2011</b></td>
<td> </td>
<td> </td>
<td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td>
<td> </td>
</tr>
<!-- End Table Head -->
<!-- Begin Table Body -->
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Beginning balance, January 1
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,610</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">1,322</td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Additions
</div></td>
<td> </td>
<td> </td>
<td align="right">—</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">5,157</td>
<td> </td>
</tr>
<tr valign="bottom" style="background: #cceeff">
<td>
<div style="margin-left:15px; text-indent:-15px">Accretion
</div></td>
<td> </td>
<td> </td>
<td align="right">100</td>
<td> </td>
<td> </td>
<td> </td>
<td align="right">131</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td>
<td> </td>
</tr>
<tr valign="bottom">
<td>
<div style="margin-left:15px; text-indent:-15px">Ending balance
</div></td>
<td> </td>
<td align="left">$</td>
<td align="right">6,710</td>
<td> </td>
<td> </td>
<td align="left">$</td>
<td align="right">6,610</td>
<td> </td>
</tr>
<tr style="font-size: 1px">
<td>
<div style="margin-left:15px; text-indent:-15px"> 
</div></td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
<td> </td>
<td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td>
<td> </td>
</tr>
<!-- End Table Body -->
</table>
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     In December 2010, we entered into an industrial revenue bond transaction related to our
Atlanta Facility. Pursuant to the terms of the industrial revenue bonds, we transferred title to
certain of our fixed assets with costs of $63.3 million, as of December 31, 2010, to a local
governmental authority in the U.S. to receive a property tax abatement related to economic
development. The title to these assets will revert back to us upon retirement or cancellation of
the applicable bonds. These fixed assets are still recognized in our consolidated balance sheets as
all risks and benefits remain with us.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     At March 31, 2011, construction in progress of $63.3 million included $26.9 million related to
the build-out of the Orange County Facility, $24.3 million related to the build-out of the Atlanta
Facility, $8.2 million of capitalized facility lease obligations, $1.4 million related to
improvements for the newly leased office space, $1.2 million related to lab improvements and $1.3
million in software and other. At March 31, 2011, construction in progress included $1.4 million of
capitalized interest, compared with $2.4 million at December 31, 2010. On February 28, 2011 and
April 28, 2011, we submitted our requests to the FDA for licensure of the Orange County Facility
and Atlanta Facility, respectively, to manufacture PROVENGE.
</div>
<div align="left" style="font-size: 10pt; margin-top: 6pt">     Depreciation expense, including depreciation of assets acquired through capital leases,
for the three months ended March 31, 2011 and 2010 was $7.4 million and $2.5 million, respectively.
</div>
</div>
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<!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDisclosure of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 5
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