Leases (Tables)

6 Months Ended

Jun. 30, 2020

Table Text Blocks

Schedule of components of lease cost and supplemental cash flow information

Lease cost is recognized on a straight-line basis over the lease term. The components of lease cost for the three and six months ended June 30, 2020 and 2019 are as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Operating lease cost during period(1)	$	633	$	3,155	$	1,266	$	7,680
Variable lease payments		360		654		732		654
Short-term lease cost		—		379		—		768
Total lease cost	$	993	$	4,188	$	1,998	$	9,102

(1) Operating lease cost is presented net of approximately $0.3 million of sublease income for each of the three and six months ended June 30, 2019. Sublease income relates to a sublease agreement between Ironwood and Cyclerion executed upon the Separation. The sublease agreement terminated in May 2019.

Supplemental cash flow information related to leases for the periods reported is as follows:

	Six Months Ended
	June 30,
	2020			2019
Right-of-use assets obtained in exchange for new operating lease upon adoption of ASC 842 (in thousands)	$	—		$	88,299
Adjustment to right-of-use assets as a result of the lease modification at the Separation date (in thousands)		—			(40,427)
Adjustment to right-of-use assets as a result of the termination of the Binney Street Lease (in thousands)		—			(34,440)
Right-of-use assets obtained in exchange for new operating lease liabilities(1) (in thousands)		—			18,452
Cash paid for amounts included in the measurement of lease liabilities (in thousands)		86			6,619
Weighted-average remaining lease term of operating leases (in years)		9.7			7.9
Weighted-average discount rate of operating leases		5.8	%		5.3	%

(1) Relates to right-of-use assets and operating lease liabilities for the Summer Street Lease (as defined below).

Schedule of future minimum lease payments under non-cancelable operating leases

Future minimum lease payments under non-cancelable operating leases as of June 30, 2020 are as follows (in thousands):

	Operating
	Lease
	Payments
2020(1)	$	1,060
2021		3,128
2022		3,129
2023		3,065
2024		3,126
2025 and thereafter		18,044
Total future minimum lease payments		31,552
Less: present value adjustment		(7,731)
Operating lease liabilities at June 30, 2020		23,821
Less: current portion of operating lease liabilities		(2,610)
Operating lease liabilities, net of current portion	$	21,211

(1) For the six months ending December 31, 2020.