Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

Operating and finance lease assets and liabilities are as follows:

(in thousands)	Classification	September 30, 2023		December 31, 2022
Assets
Operating	Other long-term assets	$	45,910	$	19,033
Finance	Property, plant and equipment, net	1,406		582
Total leased assets		$	47,316	$	19,615
Liabilities
Current
Operating	Accrued expenses and other liabilities	$	1,799	$	2,177
Finance	Current portion of long-term debt and other borrowings	703		354
Noncurrent
Operating	Other long-term liabilities	54,417		25,442
Finance	Long-term debt, net and other borrowings	422		231
Total leased liabilities		$	57,341	$	28,204

On May 4, 2023, the Company entered into a modification to the operating lease for office space in Bedford, Massachusetts, (the “Existing Premises”) that was executed in February 2022. The lease commenced and was recorded in December 2022 for $11.0 million and the initial term was set to expire in June 2031. The lease modification includes a lease of additional office and laboratory space at the Bedford location (the “Additional Premises”) for a term of 15 years and 4 months and extends the term of the lease for the Existing Premises to be coterminous with the term of the lease for the Additional Premises. As a result of the extended term for the Existing Premises, the Company recorded an additional right-of-use asset and liability of $6.0 million in May 2023. The modification also contains a provision to convert the rent schedule of the Existing Premises from gross to triple net in 2024, which may result in an additional adjustment to the right-of-use asset and liability. The landlord provided notice to the Company that its renovations of the Additional Premises were completed. The Company is currently in discussions with the landlord as to the status of the renovations. As a result of the notice, the Company recorded an additional right-of-use asset and liability of $23.5 million as of September 1, 2023. To determine the value of the additional right-of-use asset and liability, the Company was required to calculate the discount rate of the lease modification. The discount rate was determined based on the expected lease term and by comparing interest rates in the market for similar borrowings with comparable credit quality of the Company. The lease for the Additional Premises allows for the extension of five years to begin immediately upon the expiration of the original term.

Other information related to leases were as follows:

	September 30, 2023	December 31, 2022
Weighted-average remaining lease term (Years):
Operating leases	13.6	7.9
Finance leases	2.7	1.9
Weighted-average discount rate:
Operating leases	7.3%	4.8%
Finance leases	7.2%	4.4%

Leases

Leases

Operating and finance lease assets and liabilities are as follows:

(in thousands)	Classification	September 30, 2023		December 31, 2022
Assets
Operating	Other long-term assets	$	45,910	$	19,033
Finance	Property, plant and equipment, net	1,406		582
Total leased assets		$	47,316	$	19,615
Liabilities
Current
Operating	Accrued expenses and other liabilities	$	1,799	$	2,177
Finance	Current portion of long-term debt and other borrowings	703		354
Noncurrent
Operating	Other long-term liabilities	54,417		25,442
Finance	Long-term debt, net and other borrowings	422		231
Total leased liabilities		$	57,341	$	28,204

On May 4, 2023, the Company entered into a modification to the operating lease for office space in Bedford, Massachusetts, (the “Existing Premises”) that was executed in February 2022. The lease commenced and was recorded in December 2022 for $11.0 million and the initial term was set to expire in June 2031. The lease modification includes a lease of additional office and laboratory space at the Bedford location (the “Additional Premises”) for a term of 15 years and 4 months and extends the term of the lease for the Existing Premises to be coterminous with the term of the lease for the Additional Premises. As a result of the extended term for the Existing Premises, the Company recorded an additional right-of-use asset and liability of $6.0 million in May 2023. The modification also contains a provision to convert the rent schedule of the Existing Premises from gross to triple net in 2024, which may result in an additional adjustment to the right-of-use asset and liability. The landlord provided notice to the Company that its renovations of the Additional Premises were completed. The Company is currently in discussions with the landlord as to the status of the renovations. As a result of the notice, the Company recorded an additional right-of-use asset and liability of $23.5 million as of September 1, 2023. To determine the value of the additional right-of-use asset and liability, the Company was required to calculate the discount rate of the lease modification. The discount rate was determined based on the expected lease term and by comparing interest rates in the market for similar borrowings with comparable credit quality of the Company. The lease for the Additional Premises allows for the extension of five years to begin immediately upon the expiration of the original term.

Other information related to leases were as follows:

	September 30, 2023	December 31, 2022
Weighted-average remaining lease term (Years):
Operating leases	13.6	7.9
Finance leases	2.7	1.9
Weighted-average discount rate:
Operating leases	7.3%	4.8%
Finance leases	7.2%	4.4%