Leases

12 Months Ended

Dec. 31, 2020

Leases

Leases

8. Leases

The Company leases approximately 170,000 square feet of office and laboratory space in two buildings in South San Francisco, California, under a non-cancelable operating lease that ends in May 2030 (“SSF Lease”). This lease includes a tenant improvement allowance that expires in May 2022 and had a remaining balance of $12.1 million and $15.6 million, as of December 31, 2020 and 2019, respectively. The Company’s Irish subsidiary leases approximately 6,100 square feet of office space in Dublin, Ireland under a lease that expires in April 2027 (“Dublin

Lease”). In addition, the Company leases equipment for clinical research studies with an estimated lease term ending in August 2022.

The SSF Lease contains two options to extend the term of the lease for successive periods of five years each, and the Dublin Lease contains a lease termination option in April 2024 at the Company’s discretion. The equipment lease has undergone extensions to the initial lease term due to delays in patient enrollment in the clinical trial, which the Company has characterized as lease modifications. The equipment lease contains options to terminate the agreements at the Company’s discretion. The two options to extend the SSF Lease and the options to terminate the Dublin Lease and equipment lease were not recognized in the determination of the Company’s right-of-use assets and lease liabilities below.

The Company has evaluated its leases and determined that they were all operating leases. The present values of the remaining lease payments and corresponding right-of-use assets were as follows, and the difference between the right-of-use assets and lease liabilities was due to office-related deferred rent payments that are payable in future periods.

(In thousands)	Classification	December 31, 2020		December 31, 2019
Assets
Operating lease assets	Operating lease assets	$	43,260	$	46,604
Liabilities
Current:
Operating lease liabilities	Operating lease liabilities	$	9,867	$	7,762
Non-current:
Operating lease liabilities	Long-term operating lease liabilities		47,220		47,725
Total operating lease liabilities		$	57,087	$	55,487

Lease expense was included within operating expenses in the consolidated statements of operations as follows:

		Year Ended		Year Ended		Year Ended
(In thousands)	Classification	December 31, 2020		December 31, 2019		December 31, 2018
Operating lease expense	Selling, general and administrative expense	$	7,974	$	7,959	$	7,985
Operating lease expense	Research and development expense		758		164		—
Total operating lease expense (1)		$	8,732	$	8,123	$	7,985

(1) Excludes short-term leases which were immaterial and office lease service-related charges.

Cash paid for amounts included in the measurement of lease liabilities was as follows:

	Year Ended		Year Ended
(In thousands)	December 31, 2020		December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,804	$	7,210

As of December 31, 2020, the maturities of the Company’s lease liabilities were as follows:

(In thousands)
Year ending December 31:
2021	$	10,330
2022		10,345
2023		10,134
2024		10,351
2025		10,649
Thereafter		49,309
Total operating lease payments	$	101,118
Less: Estimated tenant improvement allowance		(12,053)
Less: Imputed interest		(31,978)
Present value of operating lease liabilities	$	57,087

As of December 31, 2020, the weighted-average remaining lease term was 9.1 years, and the weighted-average discount rate used to determine the lease liabilities was 8.64%. The Company’s discount rate was primarily derived from the 9.0% interest rate on its previously issued Non-Recourse 2033 Notes in November 2018 and did not involve any significant assumptions.