We lease our corporate headquarters in South San Francisco, California under a non-cancellable lease agreement. In December 2021, we entered into a second amendment with the landlord to extend the lease term through May 2025. The amended lease agreement does not include an option to extend the lease term. In connection with the amended lease, we are required to maintain a letter of credit in the amount of $0.1 million to the landlord.

In March 2021, we entered into a new lease agreement for approximately 33,659 square feet of office, lab and warehouse space in Thousand Oaks, California. During the third quarter of 2021, the initial 10.5-year lease term commenced, upon substantial completion of the landlord’s work as defined under the agreement. Base rent is subject to annual increases of 3% with each annual anniversary of the rent commencement date. We have the option to extend this lease for two additional five-year periods after the initial term.

In February 2017, we entered into a lease agreement (the “ATOM Lease”) for approximately 90,580 square feet of office, lab and cellular therapy manufacturing space in Thousand Oaks, California. The initial 15-year term of the lease commenced on February 15, 2018, upon the substantial completion of landlord’s work as defined under the agreement. In connection with the lease, we were required to issue a letter of credit in the amount of $1.2 million to the landlord, which is recorded as restricted cash in our consolidated balance sheet. In April 2022, we assigned the ATOM Lease to FDB in connection with the closing of the sale of the ATOM Facility to FDB. At the time, Atara expected to receive novation of its obligations under the ATOM Lease. We have not received this novation and remain jointly and severally liable for the ATOM Lease. Accordingly, we reclassified the assets and liabilities related to the ATOM Lease from held for sale to their original accounts. Under ASC 842, we are considered to be the sub-lessor of the ATOM Lease and we record rental income as a reduction to rent expense within operating expenses. Rental income was not material for the three and six months ended June 30, 2022.

In November 2018, we entered into a lease agreement for additional office space in Thousand Oaks, California that expires in February 2026 and for which we have the option to extend the lease for an additional period of five years after the initial term. Additionally, in 2021, we entered into an amended lease agreement for our office and lab space in Aurora, Colorado, to add additional lab space.

We evaluated our vendor contracts to identify embedded leases, and determined that the Fujifilm MSA contained items that constituted a lease under ASC 842, Leases, as the Company has the right to substantially all of the economic benefits from the use of the asset and can direct the use of the asset. We concluded that the Fujifilm MSA contains an embedded operating lease for certain dedicated processing rooms for the manufacturing of Atara product and an embedded finance lease for certain freezers dedicated for Atara’s use. The Fujifilm MSA includes contractual obligations in the form of payments for the processing rooms and the freezers, each over a term of five years.

The maturities of lease liabilities under our operating and finance leases as of June 30, 2022 were as follows:


	Operating Leases				Finance Leases
Years Ending December 31,		(in thousands)
2022		$	8,641			$	658
2023			17,900				1,250
2024			18,035				1,242
2025			17,880				1,263
2026			16,557				1,285
Thereafter			21,409				436
Total lease payments		$	100,422			$	6,134
Less: amount representing interest			(25,754	)			(1,329	)
Present value of lease liabilities		$	74,668			$	4,805

Balance as of June 30, 2022
Other current liabilities		$	10,669			$	839
Operating lease liabilities - long-term			63,999				—
Other long-term liabilities			—				3,966
Total		$	74,668			$	4,805

The components of lease cost were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(in thousands)						(in thousands)
Operating lease cost:
Operating lease cost	$	4,299	$	749	$	5,646	$	1,498
Short-term lease cost		41		202		267		427
Total operating lease cost	$	4,340	$	951	$	5,913	$	1,925
Finance lease cost:
Amortization expense	$	286	$	63	$	343	$	128
Interest on lease liabilities		129		8		133		18
Total finance lease cost	$	415	$	71	$	476	$	146

Other information related to leases was as follows:


	Six Months Ended June 30,
	2022			2021
	(in thousands, except lease term and discount rate)
Supplemental Cash Flows Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	6,372		$	1,580
Operating cash flows for finance leases		133			18
Financing cash flows for finance leases		190			130

Operating lease assets obtained in exchange for lease obligations:	$	50,779		$	—
Finance lease assets obtained in exchange for lease obligations:		4,795			—
Weighted Average Remaining Lease Term
Operating leases	6.4 years			9.2 years
Finance leases	4.7 years			1.3 years
Weighted Average Discount Rate
Operating leases		9.9	%		10.3	%
Finance leases		10.4	%		9.7	%