Leases

3 Months Ended

Mar. 31, 2020

7. Leases

At March 31, 2020, our operating leases consisted of the following:

Address	Type	Square Feet		Commencement Date	Expiration Date
12780 El Camino Real ⁽¹⁾	Office/Laboratory		141,000	August 7, 2019	July 31, 2031
12790 El Camino Real, Suite 130 ⁽¹⁾	Office		2,000	December 1, 2019	July 31, 2031
12790 El Camino Real, Suite 150 ⁽¹⁾	Office		8,000	August 7, 2019	July 31, 2031
12790 El Camino Real, Suite 300 ⁽¹⁾	Office		28,000	December 1, 2019	July 31, 2031
12777 High Bluff Drive ⁽²⁾	Office		45,000	July 1, 2018	July 31, 2029
12790 El Camino Real, Suite 200 ⁽¹⁾	Office		28,000	February 1, 2021	July 31, 2031
12790 El Camino Real, Suite 100 ⁽¹⁾	Office		17,000	February 1, 2021	July 31, 2031

_____________________________________

⁽¹⁾ Under the terms of the lease, we have two options to extend the term of the lease for a period of ten years each. We were not reasonably certain to exercise either of these options at lease commencement. As such, neither option was recognized as part of the associated operating lease right-of-use asset or liability. In connection with the lease, in lieu of a cash security deposit, Wells Fargo Bank, N.A., or Well Fargo, issued a $3.0 million letter of credit on our behalf, which is secured by a deposit of equal amount.

⁽²⁾ Under the terms of the lease, we do not have the option to extend the lease. In lieu of a cash security deposit, Wells Fargo issued a $1.0 million letter of credit on our behalf, which is secured by a deposit of $0.2 million.

Our operating lease cost was $2.5 million and $1.9 million for the three months ended March 31, 2020 and 2019, respectively. Cash paid for amounts in the measurement of lease liabilities for operating cash flows from operating leases was $2.1 million and $1.6 million for the three months ended March 31, 2020 and 2019, respectively.

Our operating leases had a weighted average remaining lease term of 11.0 years and 11.4 years at March 31, 2020 and December 31, 2019, respectively, and a weighted average discount rate of 5.8% at March 31, 2020 and December 31, 2019, respectively.

At March 31, 2020, the approximate future minimum lease payments under operating leases were as follows:

(in millions)	Operating Leases
Year Ending December 31,
2020 (9 months remaining)	$	6.5
2021		10.6
2022		10.9
2023		11.2
2024		11.6
Thereafter		79.7
Total operating lease payments		130.5
Less accreted interest		36.1
Total operating lease liabilities		94.4
Less current operating lease liabilities		8.8
Noncurrent operating lease liabilities	$	85.6

_____________________________________

Note: Amounts presented in the table above exclude $28.3 million of non-cancelable future minimum lease payments for operating leases that have not yet commenced.