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Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
The Company leases real estate, including office and laboratory space.
In May 2018, the Company entered into a lease for office space (the Initial Space) at 200 Smith Street in Waltham, Massachusetts (the Premises). The initial term of the lease expires in November 2029, unless terminated earlier in accordance with the terms of the lease. The Company is entitled to two five-year options to extend. The initial annual base rent is
approximately $2.0 million and will increase annually for a total of $22.4 million over the lease term. In October 2019, the lease for the Initial Space commenced and resulted in the addition of an operating lease asset of $21.2 million and corresponding lease liability of $17.0 million in the fourth quarter of 2019. The Premises became the Company's new headquarters in October 2019.
In April 2019, the Company amended its lease for office space at the Premises to add an additional 38,003 square feet of space (the Additional Space) for a total of 82,346 square feet of space. The initial term of the lease for the Additional Space will expire in November 2029 unless terminated earlier in accordance with the terms of the lease and the Company is entitled to two five-year options to extend the lease. The initial annual base rent for the Additional Space is approximately $1.9 million and will increase annually for a total of $18.2 million over the lease term. In July 2020, the lease for the Additional Space commenced and resulted in the addition of an operating lease asset of $16.5 million and a corresponding lease liability of $13.5 million in the third quarter of 2020.
The Company is required to maintain a letter of credit associated with its leases at the Premises. The balances of the Company's certificate of deposit associated with the letter of credit for its leases at the Premises of $2.1 million as of both December 31, 2021 and 2020 were classified as long-term investment—restricted in the consolidated balance sheets. The Company increased the letter of credit and associated certificate of deposit by $1.0 million pursuant to the terms of the lease agreement for the Additional Space during the fourth quarter of 2020.
In August 2020, the Company amended and restated its real estate leases primarily for office and laboratory space in Lawrence, Kansas (the 2020 Lawrence Lease Agreements). The initial term of the 2020 Lawrence Lease Agreements will expire on December 31, 2030 unless terminated earlier in accordance with the terms of the lease and the Company is entitled to two five-year options to extend the leases. The 2020 Lawrence Lease Agreements modified a previously existing operating lease which resulted in an additional operating lease asset of $1.4 million and a corresponding lease liability of $1.4 million during the third quarter of 2020. Further, new leases associated with the 2020 Lawrence Lease Agreements commenced under ASC 842 during the first and fourth quarters of 2021 resulting in the additions of operating lease assets of $0.5 million and $3.4 million and corresponding lease liabilities of $0.5 million and $1.7 million, respectively. The Company expects that an additional new operating lease associated with additional lease space included in the 2020 Lawrence Lease Agreements will commence in 2022.
The Company's leases contain options to extend the lease terms; however, these extensions were not included in the operating lease assets and lease liabilities recorded on the consolidated balance sheets as they were not reasonably certain of being exercised.
During the years ended December 31, 2021, 2020, and 2019 the Company was subject to certain lease agreements with terms of less than 12 months to accommodate short-term or temporary needs and its office space needs to support commercialization efforts in key European markets. The expenses associated with such lease agreements are included in short-term lease costs for the years ended December 31, 2021, 2020, and 2019, as applicable.
The Company's leases require the Company to pay for its share of certain operating expenses, taxes, and other expenses based on actual costs incurred and therefore, as the amounts are variable in nature, are expensed in the period incurred and included in variable lease costs for the years ended December 31, 2021, 2020, and 2019. Payment escalations specified in the leases are recognized on a straight-line basis over the lease terms.
All of the Company's leases qualify as operating leases. The following table summarizes the presentation of the Company's operating leases in the consolidated balance sheet:
December 31,
(in thousands)20212020
Operating lease assets$36,800 $36,341 
Current operating lease liabilities$2,870 $2,457 
Operating lease liabilities, net of current portion27,991 28,764 
Total operating lease liabilities$30,861 $31,221 
The components of lease expense were as follows:
Year Ended December 31,
(in thousands)202120202019
Operating lease cost$5,178 $4,167 $1,223 
Short-term lease cost357 354 520 
Variable lease cost1,225 461 427 
Total lease expense$6,760 $4,982 $2,170 
Future annual minimum lease payments under operating leases are as follows:
(in thousands)As of December 31, 2021
2022$4,518 
20234,601 
20244,683 
20254,765 
20264,848 
Thereafter15,136 
Total future minimum lease payments38,551 
Less: imputed interest(7,690)
Total operating lease liabilities$30,861 
The weighted-average remaining lease term and weighted-average discount rate of the Company's operating leases are as follows:
As of December 31,
20212020
Weighted-average remaining lease term in years
8.028.97
Weighted-average discount rate
5.57 %5.60 %
Supplemental disclosure of cash flow information related to the Company's operating leases included in cash flows used in operating activities in the consolidated statement of cash flows were as follows:
Year Ended December 31,
(in thousands)202120202019
Cash paid for amounts included in the measurement of operating lease liabilities
$4,243 $2,666 $532 
Operating lease liabilities arising from obtaining operating lease assets
$2,150 $14,902 $17,144