Leases

12 Months Ended

Dec. 31, 2019

The Company has operating leases for corporate offices, research and development facilities, and a fleet of vehicles. The properties primarily relate to the Company’s principal executive office and research facility located in Durham, North Carolina, regulatory, commercial support and other administrative activities located in Irvine, California, and clinical, finance and legal operations located in Bedminster, New Jersey. The Durham, North Carolina, facility consists of approximately 61,000 square feet of laboratory and office space under leases that expire between June 2020 and June 2024 and the Irvine, California, location consists of approximately 37,300 square feet of office space under a lease that expires in January 2022. The Company terminated its previous lease and entered into a lease for its new Bedminster, New Jersey, location, which consists of approximately 34,000 square feet of office space under a lease that expires in October 2029. There are also small offices in Malta, Ireland, the United Kingdom and Japan.

The Company is leasing approximately 30,000 square feet of interior floor space in Athlone, Ireland, for its manufacturing plant in Athlone, Ireland, which the Company has concluded is an operating lease upon completion of the build-out in the second quarter of 2019. As a result, the Company concurrently recognized an operating lease ROU asset and a corresponding operating lease liability related to the leaseback of the facility of approximately $2.4 million upon completion of the build-out. The Company is reasonably certain it will remain in the lease through the end of its lease term in 2037, however, the Company is permitted to terminate the lease as early as September 2027.

The Company’s operating leases have remaining lease terms of approximately 1 year to 18 years, some of which include options to extend the leases.

Balance sheet information related to leases was as follows:



(in thousands)	DECEMBER 31, 2019
Operating Leases
Operating lease right-of-use assets	$	16,523

Operating lease liabilities	$	5,502
Long-term operating lease liabilities	12,102
Total operating lease liabilities	$	17,604

The cash paid for amounts included in the measurement of lease liabilities was $4.7 million during the year ended December 31, 2019. The Company’s right-of-use assets obtained in exchange for operating lease obligations was $3.1 million during the year ended December 31, 2019.



	DECEMBER 31, 2019
Operating Leases
Weighted-average remaining lease terms	8 years
Weighted-average discount rate	8	%

Maturities of lease liabilities as of December 31, 2019 were as follows:



	OPERATING
(in thousands)	LEASES
Year Ending December 31,
2020	$	5,879
2021	4,074
2022	1,925
2023	1,758
Thereafter	11,551
Total undiscounted lease payments	25,187
Less: present value adjustment	(7,583		)
Total lease liabilities	$	17,604

Lease expense for the Company’s operating leases was $5.3 million, including variable lease payments of $1.3 million, for the year ended December 31, 2019, respectively.

Under prior lease guidance, minimum lease payments under operating leases were as follows at December 31, 2018:



	OPERATING
(in thousands)	LEASES
Year Ending December 31,
2019	$	4,283
2020	4,855
2021	4,278
2022	1,643
2023	1,438
Thereafter	6,698
Total minimum lease payments	$	23,195

Rent expense for the Company’s operating leases was $3.8 million and $2.0 million for the years ended December 31, 2018 and 2017, respectively.