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Property and equipment, net | 9 Months Ended
--- | ---
Sep. 30, 2019
Property and equipment, net |
Property and equipment, net | 7. Property and equipment, net Property and equipment, net consists of the following (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | September 30, | ​ | December 31, | ​
​ |  | 2019 |  | 2018 |
Office equipment |  | $ | 15,224 | ​ | $ | 16,955 | ​
Laboratory equipment | ​ | ​ | 66,700 |  |  | 61,697 | ​
Computer equipment | ​ |  | 56,743 | ​ |  | 55,436 | ​
Land | ​ | ​ | 10,069 | ​ | ​ | 10,122 | ​
Building and leasehold improvements | ​ | ​ | 211,342 | ​ | ​ | 213,196 | ​
Operating lease right-of-use assets | ​ | ​ | 30,479 | ​ | ​ | — | ​
Construction in progress | ​ |  | 83,209 | ​ |  | 65,576 | ​
​ | ​ |  | 473,766 | ​ |  | 422,982 | ​
Less accumulated depreciation and amortization | ​ |  | (126,516) | ​ |  | (103,231) | ​
Property and equipment, net | ​ | $ | 347,250 | ​ | $ | 319,751 | ​
​ In February 2018, we signed an agreement to rent a building in Morges, Switzerland for an initial term of 15 years, with multiple options to extend for an additional 20 years. The building will serve as our new European headquarters and will consist of approximately 100,000 square feet of office space. This building will allow for consolidation of our European operations that are currently located in Geneva and Lausanne, Switzerland. Building permits were granted by the local government authorities in September 2018, and construction activity began immediately thereafter. In June 2019, we obtained control of the Morges building to begin our construction activity. At that time, we determined the lease to be a finance lease and recorded a lease liability of $31.1 million and a lease right-of-use asset of $29.1 million, net of a lease incentive from our landlord of $2.0 million. As of September 30, 2019, we have capitalized approximately $7.8 million in on site preparation, design and construction costs. In July 2018, we signed an agreement to purchase land located within Y-PARC, Switzerland’s largest technology park in Yverdon. The land was purchased, in cash, for approximately $4.8 million. Upon this parcel, we are constructing a large molecule production facility. Construction activity commenced in July 2018, and as of September 30, 2019, we have capitalized approximately $59.9 million in costs for construction, ground preparation and architectural and engineering studies. We currently anticipate the facility to be completed in the second half of 2020. As stated in Note 2, in January 2019, we adopted ASC 842, Leases, which changed the accounting and reporting of our lease activity. Although we do not have significant lease activity, 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 condensed consolidated balance sheets. As of September 30, 2019 our lease liabilities are as follows (in thousands):
​ | ​ | ​ | ​ | ​
Current | ​ | ​ | ​ | ​
Operating lease liabilities | ​ | $ | 10,372 | ​
Finance lease liabilities | ​ | ​ | 763 | ​
Noncurrent | ​ | ​ | ​ | ​
Operating lease liabilities | ​ | ​ | 13,326 | ​
Finance lease liabilities | ​ | ​ | 31,732 | ​
Total lease liabilities | ​ | $ | 56,193 | ​
​ The cash paid for amounts included in the measurement of our operating lease liabilities for the nine months ended September 30, 2019 was $8.6 million in operating cash flows. The cash paid for amounts included in the measurement of our finance lease liabilities for the nine months ended September 30, 2019 was $0.6 million in financing cash flows. The maturity of our lease liabilities are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Operating | ​ | Finance | ​
Remainder of 2019 | ​ | $ | 3,469 | ​ | $ | 212 | ​
2020 | ​ | ​ | 9,907 | ​ | ​ | 697 | ​
2021 | ​ | ​ | 5,894 | ​ | ​ | 2,454 | ​
2022 | ​ | ​ | 2,901 | ​ | ​ | 2,706 | ​
2023 | ​ | ​ | 1,575 | ​ | ​ | 2,713 | ​
After 2023 | ​ | ​ | 1,331 | ​ | ​ | 35,263 | ​
Total lease cash payments | ​ | $ | 25,077 | ​ | $ | 44,045 | ​
Less: discount | ​ | ​ | 1,379 | ​ | ​ | 11,550 | ​
Present value of lease liabilities | ​ | $ | 23,698 | ​ | $ | 32,495 | ​
​ As of September 30, 2019, our finance and operating leases had a weighted average lease term of approximately 15.9 and 3.9 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 is approximately 3.7% and 4.7%, respectively. For the three and nine months ended September 30, 2019, we incurred approximately $3.6 million and $10.9 million, respectively, of expense related to our operating leases, approximately $0.7 million and $1.1 million, respectively, of amortization on our finance lease right-of-use assets and approximately $0.3 million of interest expense on our finance lease liabilities. Rent expense for the three and nine months ended September 30, 2018 was $3.6 million and $10.6 million, respectively. For the three and nine months ended September 30, 2019, the cost of our short term leases with a term less than 12 months was de minimis.

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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