Restructuring, Impairment and Costs of Terminated Program (Tables)

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Schedule of Restructuring, Impairment and Other Costs of Terminated Program

Restructuring, impairment and costs of terminated program includes the following (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Clinical trial expense, other third-party and employee costs for the wind down of the bempegaldesleukin program	$	—	$	652	$	—	$	3,606
Severance and benefit expense		—		535		—		7,961
Impairment of right-of-use assets and property, plant and equipment		—		10,173		8,329		36,628
Contract termination and other restructuring costs		46		—		5,981		912
Restructuring, impairment and other costs of terminated program	$	46	$	11,360	$	14,310	$	49,107

The following table provides details regarding the severance and benefit expense for the three and nine months ended September 30, 2024 pursuant to the 2023 Restructuring Plan and a reconciliation of the severance and benefits liability for the

three and nine months ended September 30, 2023 pursuant to the 2022 and 2023 Restructuring Plans, which we report within accrued expenses on our Condensed Consolidated Balance Sheet (in thousands):

	Nine Months Ended September 30, 2023
	2023 Restructuring Plan			2022 Restructuring Plan			Total
Liability balance as of December 31, 2022	$	—		$	3,299		$	3,299
Expense recognized during the period		5,483			—			5,483
Payments during the period		—			(3,299	)		(3,299	)
Liability balance as of March 31, 2023	$	5,483		$	—		$	5,483
Expense recognized during the period		1,943			—			1,943
Payments during the period		(6,624	)		—			(6,624	)
Liability balance as of June 30, 2023	$	802		$	—		$	802
Expense recognized during the period		535			—			535
Payments during the period		(887	)		—			(887	)
Liability balance as of September 30, 2023	$	450		$	—		$	450
	Nine Months Ended September 30, 2024
	2023 Restructuring Plan			2022 Restructuring Plan			Total
Liability balance as of December 31, 2023	$	196		$	—		$	196
Expense recognized during the period		—			—			—
Payments during the period		(196	)		—			(196	)
Liability balance as of September 30, 2024	$	—		$	—		$	—

The following is a reconciliation of the impairment charges we recorded for the nine months ended September 30, 2024 and three and nine months ended September 30, 2023, including the net book values of the sublease assets before the impairment and the fair values of the sublease assets (in thousands):

	Nine Months Ended September 30, 2024
	Property, Plant and Equipment			Operating Lease Right-of-Use Assets			Total
Net book value of impaired facilities before write-off	$	1,897		$	12,506		$	14,403
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy		(855	)		(5,219	)		(6,074	)
Total impairment of right-of-use assets and property, plant and equipment	$	1,042		$	7,287		$	8,329

	Three Months Ended September 30, 2023
	Property, Plant and Equipment			Operating Lease Right-of-Use Assets			Total
Net book value of impaired facilities before write-off	$	3,050		$	18,830		$	21,880
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy		(1,650	)		(9,663	)		(11,313	)
Impairment expense for facilities		1,400			9,167			10,567
(Gain) on sale or disposal of property, plant, and equipment		(394	)		—			(394	)
Total impairment of right-of-use assets and property, plant and equipment	$	1,006		$	9,167		$	10,173

	Nine Months Ended September 30, 2023
	Property, Plant and Equipment			Operating Lease Right-of-Use Assets			Total
Net book value of impaired facilities before write-off	$	7,206		$	46,292		$	53,498
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy		(2,172	)		(14,364	)		(16,536	)
Book value in excess of fair value		5,034			31,928			36,962
Less: Amounts recorded as amortization between March 31, 2023 and September 30, 2023 for Mission Bay facility		(263	)		(1,370	)		(1,633	)
Impairment expense for facilities		4,771			30,558			35,329
Impairment of other property, plant and equipment		1,299						1,299
Total impairment of right-of-use assets and property, plant and equipment	$	6,070		$	30,558		$	36,628

The following are reconciliations of the contract termination and other costs for three and nine months ended September 30, 2024 and 2023. As of September 30, 2024 and December 31, 2023, we report $3.2 million and $3.0 million,

respectively, within accrued expenses and the remaining within other long-term liabilities on our Condensed Consolidated Balance Sheets.

	For the Nine Months Ended September 30,
	2024			2023
Liability balances as of December 31, 2023 and 2022, respectively	$	5,542		$	7,710
Expense recognized during the period		975			912
Payments during the period		(928	)		(1,129	)
Liability balances as of March 31, 2024 and 2023, respectively	$	5,589		$	7,493
Expense recognized during the period		4,960			-
Payments during the period		(887	)		(1,264	)
Liability balances as of June 30, 2024 and 2023, respectively	$	9,662		$	6,229
Expense recognized during the period		46			-
Payments during the period		(886	)		(460	)
Liability balances as of September 30, 2024 and 2023, respectively	$	8,822		$	5,769