Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Entities that Accounted for More than 10% of Total Revenue and Accounts Receivable

A significant portion of our revenue to date has been generated from the following entities that accounted for more than 10% of total revenue and accounts receivable for the periods presented:



	Percentage of Revenue Years Ended December 31,						Percentage of Accounts Receivable December 31,
	2019		2018		2017		2019		2018
Merck	61	%	49	%	31	%	13	%	30	%
BARDA	13	%	*		10	%	54	%	13	%
Vertex	10	%	*		*		17	%	22	%
AstraZeneca	*		34	%	15	%	*		*
Alexion	*		*		36	%	*		*
DARPA	*		*		*		*		16	%
Massachusetts Life Sciences Center	*		*		*		*		12	%

________

* - Represents an amount of less than 10%

Estimated Useful Lives of Property and Equipment

The estimated useful lives of property and equipment are described below:



		Estimated Useful Life
Laboratory equipment		5 years
Leasehold improvements		Lesser of estimated useful life of improvement or remaining life of related lease
Computer equipment and software		3 years
Other assets including automobiles, furniture and fixtures		5 years
Right of use asset, financing		Lease term

Property and equipment, net as of December 31, 2019 and 2018 consists of the following (in thousands):



	December 31,
	2019			2018
Building ⁽¹⁾	$	—		$	140,442
Laboratory equipment	108,257			96,907
Leasehold improvements ⁽¹⁾	152,426			13,741
Furniture, fixtures and other	3,316			2,122
Computer equipment and software	11,985			11,513
Internally developed software	7,020			7,020
Right-of-use asset, financing	9,853			—
Construction in progress	3,222			4,688
	296,079			276,433
Less: Accumulated depreciation	(94,584		)	(64,456		)
Property and equipment, net	$	201,495		$	211,977

_________

⁽¹⁾Leasehold improvements related to our Moderna Technology Center manufacturing facility were previously capitalized as building under ASC 840 and are now included in leasehold improvements under ASC 842 (Note 2).

Components of Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive gain (loss) for the years ended December 31, 2019 and 2018 are as follows (in thousands):



	Unrealized Gain (Loss) on Available-for-Sale Debt Securities
Accumulated other comprehensive loss, balance at December 31, 2017	$	(1,157	)
Other comprehensive loss	(163		)
Accumulated other comprehensive loss, balance at December 31, 2018	(1,320		)
Other comprehensive income	3,124
Accumulated other comprehensive gain, balance at December 31, 2019	$	1,804

Effect of Adoption of ASC 606 on Condensed Financial Statements

The following tables summarize the effects of adopting ASC 606 on our consolidated financial statements at December 31, 2019, and for the year ended December 31, 2019 (in thousands, except per share data):



	As of December 31, 2019
Consolidated Balance Sheet	As reported under ASC 606			Adjustments			Balance without adoption of ASC 606
Deferred revenue, current	$	63,310		$	(8,054	)	$	55,256
Deferred revenue, non-current	138,995			4,012			143,007
Accumulated deficit	(1,496,454		)	6,785			(1,489,669		)



	Year Ended December 31, 2019
Consolidated Statement of Operations	As reported under ASC 606			Adjustments		Amount without adoption of ASC 606
Revenue:
Collaboration revenue	$	42,803		$	2,767	$	45,570
Collaboration revenue from related party	5,233			32,002		37,235
Total revenue	60,209			34,769		94,978
Loss from operations	(545,720		)	34,769		(510,951		)
Loss before income taxes	(514,716		)	34,769		(479,947		)
Net loss	(514,021		)	34,769		(479,252		)
Net loss per share - basic and diluted	(1.55		)	0.10		(1.45		)

The cumulative effect of applying both ASC 606 and ASC 842 on our consolidated balance sheets as of January 1, 2019 was as follows (in thousands):



	Balance as of December 31, 2018 ⁽¹⁾			Effect of the Adoption of						Balance as of January 1, 2019
	Balance as of December 31, 2018 ⁽¹⁾			ASC 842			ASC 606			Balance as of January 1, 2019
Assets:
Accounts receivable	$	11,686		$	—		$	(2,738	)	$	8,948
Prepaid expenses and other current assets	28,399			(300		)	—			28,099
Property and equipment, net	211,977			(2,483		)	—			209,494
Right-of-use assets, operating leases	—			63,334			—			63,334
Total assets	$	1,962,149		$	60,551		$	(2,738	)	$	2,019,962
Liabilities and Shareholders’ Equity:
Deferred revenue	$	109,056		$	—		$	(27,281	)	$	81,775
Other current liabilities	3,464			5,867			—			9,331
Deferred revenue, non-current	165,352			—			(3,441		)	161,911
Operating lease liabilities, non-current	—			64,250			—			64,250
Finance lease liabilities, non-current	—			37,718			—			37,718
Deferred lease obligation, non-current	10,006			(10,006		)	—			—
Lease financing obligation	33,489			(33,489		)	—			—
Accumulated deficit	(1,006,627		)	(3,789		)	27,984			(982,432		)
Total liabilities and shareholders’ equity	$	1,962,149		$	60,551		$	(2,738	)	$	2,019,962

_______

⁽¹⁾As reported in our 2018 Annual Report on Form 10-K.

The following table summarizes our total consolidated net revenue from our strategic collaborators for the periods presented (in thousands):



	Years Ended
Collaboration Revenue by Strategic Collaborator:	December 31, 2019 as reported (under ASU 606)		December 31, 2019 without adoption of 606 (under ASC 605)		December 31, 2018 as reported (under ASC 605)
Merck	$	36,608	$	38,977	$	66,082
AstraZeneca	5,233		37,235		45,993
Vertex	6,195		6,593		10,437
Total collaboration revenue	$	48,036	$	82,805	$	122,512

Reconciliation of Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents and restricted cash in the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands):



	As of December 31,
	2019		2018
Cash and cash equivalents	$	235,876	$	658,364
Restricted cash	1,032		595
Restricted cash, non-current	10,791		11,532
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows	$	247,699	$	670,491