Property and Equipment, net

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, net

Note 8. Property and Equipment, net

Property and equipment, net consists of the following (in thousands):

	December 31,
	2024		2023
Office equipment	$	23,710	$	23,417
Laboratory equipment	229,797		220,677
Computer equipment	156,859		147,570
Land	15,395		10,931
Building and leasehold improvements	597,342		584,755
Operating lease right-of-use assets	22,230		20,553
Construction in progress	46,062		13,544
	1,091,395		1,021,447
Less accumulated depreciation and amortization	(327,984)		(269,934)
Property and equipment, net	$	763,411	$	751,513

In May 2024, we purchased additional property in Wilmington, Delaware, including land, office buildings and parking garages for a purchase price of $48.7 million. During the year ended December 31, 2024, we capitalized $4.9 million of land, $19.5 million of building and parking garage and $30.8 million of construction in progress relating to the downtown Wilmington properties.

Depreciation expense, including amortization expense of leasehold improvements, was $65.6 million, $60.1 million and $46.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

We are the lessee of several contracts, including those to secure fleet vehicles, buildings and equipment. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Some of our building leases include options to renew and the exercise of these options is at our discretion.

Our current operating lease liabilities are reflected in accrued and other current liabilities and our noncurrent operating lease liabilities are reflected in other liabilities on the consolidated balance sheets and are as follows (in thousands):

	December 31,
	2024		2023
Current
Operating lease liabilities	$	5,583	$	5,686
Finance lease liabilities	4,419		3,439
Noncurrent
Operating lease liabilities	16,793		14,284
Finance lease liabilities	33,542		29,162
Total lease liabilities	$	60,337	$	52,571

The maturity of our lease liabilities are as follows (in thousands):

	Operating		Finance
2025	$	6,873	$	5,647
2026	6,000		5,276
2027	5,514		4,445
2028	2,465		3,655
2029	1,376		3,342
After 2029	3,061		22,568
Total lease cash payments	$	25,289	$	44,933
Less: discount	2,913		6,972
Present value of lease liabilities	$	22,376	$	37,961

The cash paid for amounts included in the measurement of our operating lease liabilities for the years ended December 31, 2024, 2023 and 2022 was $7.1 million, $9.4 million and $11.8 million, respectively, in operating cash flows. The cash paid for amounts included in the measurement of our finance lease liabilities for the years ended December 31, 2024, 2023 and 2022 was $3.8 million, $3.4 million and $2.9 million respectively, in financing cash flows.

As of December 31, 2024, our finance and operating leases had a weighted average lease term of approximately 10.4 years and 4.8 years, respectively. The discount rate of our leases is an approximation of an estimated incremental borrowing rate and is dependent upon the term and economics of each agreement. The weighted average discount rate of our finance and operating leases was approximately 3.6% and 4.5%, respectively.

As of December 31, 2023, our finance and operating leases had a weighted average lease term of approximately 10.8 years and 5.8 years, respectively. The weighted average discount rate of our finance and operating leases was approximately 4.0% and 3.9%, respectively.

As of December 31, 2022, our finance and operating leases had a weighted average lease term of approximately 12.0 years and 5.5 years, respectively. The weighted average discount rate of our finance and operating leases was approximately 4.2% and 4.4%, respectively.

For the year ended December 31, 2024, we incurred approximately $8.1 million of expense related to our operating leases, approximately $3.9 million of amortization on our finance lease right-of-use assets and approximately $1.3 million of interest expense on our finance lease liabilities. For the year ended December 31, 2023, we incurred approximately $9.8 million of expense related to our operating leases, approximately $3.5 million of amortization on our finance lease right-of-use assets and approximately $1.3 million of interest expense on our finance lease liabilities. For the year ended December 31, 2022, we incurred approximately $11.7 million of expense related to our operating leases, approximately $3.1 million of amortization on our finance lease right-of-use assets and approximately $1.4 million of interest expense on our finance lease liabilities.