Leases

12 Months Ended

Dec. 31, 2023

Our operating leases that have commenced have terms that expire beginning 2025 through 2036 and consist of office space and research and development laboratories, including our corporate headquarters. Certain of these lease agreements contain clauses for renewal at our option. As we were not reasonably certain to exercise any of these renewal options at commencement of the associated leases, no such options were recognized as part of our ROU assets or operating lease liabilities.

The following table presents supplemental operating lease information for operating leases that have commenced.


	Year Ended December 31,
(in millions, except weighted average data)	2023		2022			2021
Operating lease cost	$	17.1	$	16.3		$	15.3
Sublease income	(0.7)		—			—
Net operating lease cost	$	16.4	$	16.3		$	15.3
Cash paid for amounts included in the measurement of operating lease liabilities	$	17.9	$	16.9		$	12.6

			December 31, 2023			December 31, 2022
Weighted average remaining lease term			10.8 years			7.9 years
Weighted average discount rate			5.1		%	5.3		%
Restricted cash related to letters of credit issued in lieu of cash security deposits			$	7.8		$	7.8

The following table presents approximate future non-cancelable minimum lease payments under operating leases and sublease income as of December 31, 2023.


(in millions)	Operating Leases (1)		Sublease Income
Year ending December 31, 2024	$	33.0	$	(1.7)
Year ending December 31, 2025	34.7		(1.7)
Year ending December 31, 2026	34.0		(1.7)
Year ending December 31, 2027	34.8		(1.7)
Year ending December 31, 2028	35.6		(1.7)
Thereafter	211.4		(4.3)
Total operating lease payments (sublease income)	383.5		$	(12.8)
Less accreted interest	93.2
Total operating lease liabilities	290.3
Less current operating lease liabilities included in other current liabilities	32.0
Noncurrent operating lease liabilities	$	258.3

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(1) Amounts presented in the table above exclude $15.4 million for 2025, $23.6 million for 2026, $24.3 million for 2027, $25.1 million for 2028 and $223.5 million thereafter of approximate non-cancelable future minimum lease payments under operating leases that have not yet commenced.

New Campus Facility. On February 8, 2022, we entered into a lease agreement for a four-building campus facility to be constructed in San Diego, California, including a six-year option for the construction of a fifth building. This campus facility, comprised of office space and research and development laboratories, will serve as our new corporate headquarters.

The construction of the campus facility is phased. We recognized ROU assets of $199.0 million and operating lease liabilities of $189.8 million in association with the commencement of operating leases following the completion of the first phase of construction relating to office space in December 2023.

As we begin to occupy our new campus facility, we will sublease certain of our existing leased premises when we determine there is excess leased capacity. Certain of these subleases contain both lease and non-lease components. Sublease income is recognized as an offset to operating expense on a straight-line basis over the lease term. Income related to non-lease components is recognized in operating expenses as a reduction to costs we incur in relation to the primary lease.