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Right-of-use asset and lease liabilities | 6 Months Ended
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Jun. 30, 2019
Right-of-use asset and lease liabilities | 5 Right-of-use asset and lease liabilities ​ The Company adopted ASU 2016-02 “Leases (Topic 842)” as well as ASU 2018-10 and ASU 2018-11, which both relate to improvements to ASC 842. The Company adopted the standard using the modified retrospective approach with an effective date as of the beginning of the Company’s fiscal year, January 1, 2019. The standard requires the balance sheet recognition for leases. Prior year interim periods were not recast under the new standard and therefore, those amounts are not presented below. The Company elected to utilize practical expedients available for expired or existing contracts which allowed the Company to carryforward historical assessments of (1) whether contracts are or contain leases, (2) lease classification, and (3) initial direct costs. ​ The Company leases various office space and laboratory space under the following operating lease agreements: ​ Lexington, Massachusetts / United States ​ In July 2013, the Company entered into a lease for a facility in Lexington, Massachusetts, United States. The term of the lease commenced in November 2013, was set for 10 years starting from the 2014 rent commencement date and is non-cancellable. Originally, the lease for this facility had a termination date of 2024. In November 2018, the term was expanded by five years to June 2029. The lease continues to be renewable for two subsequent five-year terms. Additionally, the lease was expanded to include an additional 30,655 square feet within the same facility and for the same term. The lease of the expansion space commenced on June 1, 2019. ​ The contractually fixed annual increases of lease payments through 2029 for both the extension and expansion lease have been included in the lease payments. ​ Amsterdam / The Netherlands ​ In March 2016, the Company entered into a 16-year lease for a facility in Amsterdam, the Netherlands, and amended this agreement in June 2016. The lease for this facility terminates in February 2032, with an option to extend in increments of five-year periods. The lease contract includes variable lease payments related to annual increases in payments based on a consumer price index. ​ On December 1, 2017, the Company entered into an agreement to sub-lease three of the seven floors of its Amsterdam facility for a ten-year term ending on December 31, 2027, with an option for the sub-lessee to extend until December 31, 2031. The fixed lease payments to be received during the remaining term amount to $9.1 million (EUR 8.0 million) as of June 30, 2019. ​ Operating lease liabilities ​ As no implicit rate in relation to the three above facility leases was readily available, the Company used an incremental borrowing rate to discount the lease payments. The Company derived the discount rates, adjusted for differences in the term and payment patterns, from the Company’s loan from Hercules Capital, which was refinanced in December 2018. ​ The components of lease cost were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three months ended |  | Six months ended
​ | ​ | June 30, 2019 | ​ | June 30, 2019
​ | ​ | (in thousands)
Operating lease cost | ​ | $ | 1,022 | ​ | $ | 1,919
Variable lease cost | ​ | ​ | 101 | ​ | ​ | 182
Sublease income | ​ | ​ | (264) | ​ | ​ | (532)
Total lease cost | ​ | $ | 859 | ​ | $ | 1,569
​ The rent expense for the three and six months ended June 30, 2018 was $0.7 million and $1.4 million, respectively. ​ The table below presents the lease-related assets and liabilities recorded on the Consolidated balance sheet. ​
​ | ​ | ​ | ​
​ |  | June 30, 2019
​ | ​ | (in thousands)
Assets | ​ | ​ | ​
Operating lease right-of-use assets | ​ | $ | 27,173
Liabilities | ​ | ​ | ​
Current | ​ | ​ | ​
Current operating lease liabilities, net of $1.5 million landlord incentive payments expected to be collected within 12 months | ​ | ​ | 4,256
Non-current | ​ | ​ | ​
Non-current operating lease liabilities | ​ | ​ | 31,870
Total lease liabilities | ​ | $ | 36,126
​ Other information ​ The weighted-average remaining lease term as of June 30, 2019 is 10.9 years and the weighted-average discount rate as of this date is 11.35%. ​ The table below presents supplemental cash flow and non-cash information related to leases. ​
​ ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three months ended |  | Six months ended
​ | ​ | June 30, 2019 | ​ | June 30, 2019
​ | ​ | (in thousands) | ​ | (in thousands)
Cash paid for amounts included in the measurement of lease liabilities | ​ | ​ | ​ | ​ | ​ | ​
Operating cash flows for operating leases | ​ | $ | 603 | ​ | $ | 2,016
​ | ​ | ​ | ​ | ​ | ​ | ​
Right-of-use asset obtained in exchange for lease obligation | ​ | ​ | ​ | ​ | ​ | ​
Operating lease 1) | ​ | $ | 8,634 | ​ | $ | 8,634
​ (1) The Company capitalized $19.0 million of operating right-of-use assets upon adoption of the new lease standard on January 1, 2019 that are not included in the movement for the six months ended June 30, 2019.) ​ Undiscounted cash flows ​ The table below reconciles the undiscounted cash flows as of June 30, 2019, for each of the first five years and the total of the remaining years to the operating lease liabilities recorded on the Consolidated balance sheet as of June 30, 2019. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Lexington | ​ | Amsterdam1) | ​ | Total
​ | (in thousands)
2019 (six months remaining) | $ | 1,650 | ​ | $ | 1,438 | ​ | $ | 3,088
2020 | ​ | 3,360 | ​ | ​ | 1,918 | ​ | ​ | 5,278
2021 | ​ | 3,455 | ​ | ​ | 1,918 | ​ | ​ | 5,373
2022 | ​ | 3,552 | ​ | ​ | 1,918 | ​ | ​ | 5,470
2023 | ​ | 3,650 | ​ | ​ | 1,918 | ​ | ​ | 5,568
Thereafter | ​ | 24,892 | ​ | ​ | 15,343 | ​ | ​ | 40,235
Total lease payments | $ | 40,559 | ​ | $ | 24,453 | ​ | $ | 65,012
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Less: amount of lease payments representing interest payments | ​ | (17,728) | ​ | ​ | (11,158) | ​ | ​ | (28,886)
Present value of lease payments | ​ | 22,831 | ​ | ​ | 13,295 | ​ | ​ | 36,126
Less: current operating lease liabilities | ​ | (1,859) | ​ | ​ | (2,397) | ​ | ​ | (4,256)
Non-current operating lease liabilities | $ | 20,972 | ​ | $ | 10,898 | ​ | $ | 31,870
​ (1) Payments are due in EUR and have been translated at the foreign exchange rate as of June 30, 2019, of $1.13709 / €1.00) ​ As of December 31, 2018, aggregate minimum lease payments under the historical accounting standard ASC 840 for the calendar years were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | Lexington | ​ | Amsterdam1) | ​ | Total
​ | (in thousands)
2019 | $ | 2,707 | ​ | $ | 1,963 | ​ | $ | 4,670
2020 | ​ | 3,360 | ​ | ​ | 1,970 | ​ | ​ | 5,330
2021 | ​ | 3,455 | ​ | ​ | 1,970 | ​ | ​ | 5,425
2022 | ​ | 3,552 | ​ | ​ | 1,970 | ​ | ​ | 5,522
2023 | ​ | 3,650 | ​ | ​ | 1,970 | ​ | ​ | 5,620
Thereafter | ​ | 24,892 | ​ | ​ | 16,085 | ​ | ​ | 40,977
Total minimum lease payments | $ | 41,616 | ​ | $ | 25,926 | ​ | $ | 67,544
​ ​ (1) Payments are due in EUR and have been translated at the foreign exchange rate as of December 31, 2018, of $1.14449 / €1.00)

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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