Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

15. Leases

Operating and finance lease assets and liabilities are as follows:

(in thousands)	Classification	June 30, 2024		December 31, 2023
Assets
Operating	Other long-term assets	$	42,541	$	45,325
Finance	Property, plant and equipment, net	1,427		1,438
Total leased assets		$	43,968	$	46,763
Liabilities
Current
Operating	Accrued expenses and other liabilities	$	2,094	$	1,904
Finance	Current portion of long-term debt and other borrowings	868		823
Noncurrent
Operating	Other long-term liabilities	54,125		54,453
Finance	Long-term debt, net and other borrowings	362		625
Total leased liabilities		$	57,449	$	57,805

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. In September 2023, the landlord provided notice to the Company that its renovations of the Additional Premises were completed. 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.

On March 1, 2024, the Company transferred the sublease and completed the asset sale of the Somerset Facility. See Note 7, "Property, Plant and Equipment, Net" for further discussion on the sublease transfer.

Other information related to leases were as follows:

	June 30, 2024	December 31, 2023
Weighted-average remaining lease term (Years):
Operating leases	13.2	13.5
Finance leases	2.4	2.3
Weighted-average discount rate:
Operating leases	7.4%	7.3%
Finance leases	7.4%	6.2%

Leases

15. Leases

Operating and finance lease assets and liabilities are as follows:

(in thousands)	Classification	June 30, 2024		December 31, 2023
Assets
Operating	Other long-term assets	$	42,541	$	45,325
Finance	Property, plant and equipment, net	1,427		1,438
Total leased assets		$	43,968	$	46,763
Liabilities
Current
Operating	Accrued expenses and other liabilities	$	2,094	$	1,904
Finance	Current portion of long-term debt and other borrowings	868		823
Noncurrent
Operating	Other long-term liabilities	54,125		54,453
Finance	Long-term debt, net and other borrowings	362		625
Total leased liabilities		$	57,449	$	57,805

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. In September 2023, the landlord provided notice to the Company that its renovations of the Additional Premises were completed. 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.

On March 1, 2024, the Company transferred the sublease and completed the asset sale of the Somerset Facility. See Note 7, "Property, Plant and Equipment, Net" for further discussion on the sublease transfer.

Other information related to leases were as follows:

	June 30, 2024	December 31, 2023
Weighted-average remaining lease term (Years):
Operating leases	13.2	13.5
Finance leases	2.4	2.3
Weighted-average discount rate:
Operating leases	7.4%	7.3%
Finance leases	7.4%	6.2%