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Leases | 6 Months Ended
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Jun. 30, 2021
Leases [Abstract] |
Leases | 7. Leases Operating leases The Company’s operating leases are as follows:  A February 2018 lease for 38,203 square feet of office and laboratory space, which commenced in March 2018 and terminates in September 2028. The lease is subject to fixed-rate rent escalations and provides for $6.1 million in tenant improvements and a term extension option, which is not reasonably certain of exercise.  An October 2018 lease for laboratory space, which commenced in April 2019 and was amended in March 2020 and April 2020. The amended lease commenced in April 2020 and terminates in December 2025. The amended lease is subject to fixed-rate rent escalations and provides an option to extend the lease for two additional two-year periods through December 31, 2029, which are not reasonably certain of being exercised. Upon commencement of the March 2020 amendment, the Company recorded an operating lease right-of-use, or ROU, asset and a lease liability of $4.2 million. Upon commencement of the April 2020 amendment, the Company recorded an operating lease ROU asset and a lease liability of $1.8 million.  Leases in June 2019 and July 2019 for office and laboratory space, both of which commenced in October 2019 and terminate in December 2021. The leases are subject to fixed-rate rent escalations.  An April 2019 lease for office and laboratory space to be built. Pursuant to the terms of the original lease agreement, the first phase of the lease commenced in October 2020 (with the rent payments for the first phase expected to commence at the earliest in the second half of 2021) and the second phase of the lease commenced in January 2021 (with the rent payments for the second phase expected to commence at the earliest in the first half of 2022). The lease is subject to fixed-rate rent escalations and provides for $23.4 million in tenant improvements and the option to extend the lease for two terms of five years each, which are not reasonably certain of exercise. The Company determined that it is the accounting owner of all tenant improvements. Upon executing the lease, the Company made a security deposit of $11.8 million in the form of a letter of credit, which is included in restricted cash as of June 30, 2021 and December 31, 2020. Upon commencement of the first phase of this lease in October 2020, the Company recorded an operating lease ROU asset of $66.8 million and a lease liability of $68.8 million and upon commencement of the second phase of this lease in January 2021, the Company recorded an operating lease ROU asset of $22.0 million and a corresponding lease liability of $23.0 million. Subsequently, during the second quarter of 2021, the Company amended the commencement dates of the first and second phases of this lease. Pursuant to the terms of the amendment, the lease will terminate on February 28, 2034, which is 12 years from the amended second phase commencement date. As a result, the Company recorded an increase in the ROU asset of $0.5 million and an increase in lease liability of $0.5 million. The following table summarizes operating lease costs as well as sublease income (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Operating lease costs |  | $ | 4,563 |  |  | $ | 1,705 |  |  | $ | 9,103 |  |  | $ | 3,303 |
Variable lease costs |  |  | 364 |  |  |  | 249 |  |  |  | 574 |  |  |  | 537 |
Short-term lease costs |  |  | 360 |  |  |  | — |  |  |  | 378 |  |  |  | — |
Total |  | $ | 5,287 |  |  | $ | 1,954 |  |  | $ | 10,055 |  |  | $ | 3,840 |
The following table summarizes the lease term and discount rate for operating leases:
|  | June 30, 2021 |  |  | December 31, 2020 |
Weighted-average remaining lease term (years) |  | 11.5 |  |  | 11.5 |
Weighted-average discount rate |  |  | 7.1 | % |  |  | 7.4 | %
The following table summarizes the lease costs for amounts included in the measurement of lease liabilities (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Operating cash flows used for operating leases |  | $ | 2,310 |  |  | $ | 1,593 |  |  | $ | 3,995 |  |  | $ | 3,118 |
Operating lease liabilities arising from obtaining ROU assets |  |  | 798 |  |  |  | 1,763 |  |  |  | 24,164 |  |  |  | 5,795 |
At June 30, 2021, the future minimum lease payments for the Company’s operating leases for each of the years ending December 31 were as follows (in thousands):
Remainder of 2021 |  | $ | 7,109 |
2022 |  |  | 16,616 |
2023 |  |  | 17,262 |
2024 |  |  | 17,787 |
2025 |  |  | 18,260 |
Thereafter |  |  | 132,835 |
Undiscounted lease payments |  |  | 209,869 |
Less: imputed interest |  |  | (73,585 | )
Total operating lease liabilities |  | $ | 136,284 |
In August 2020, the Company entered into a lease agreement with Alexandria Real Estate Equities, Inc. to build a 100,000 square foot manufacturing facility in Research Triangle Park, North Carolina intended to support a broad range of clinical programs. The lease has a term of 15 years following the commencement date and provides the Company the option to extend the lease term for two five-year terms. It is subject to fixed rate escalation increases and also provides up to $20.0 million for reimbursement of tenant improvements. As the lease had not commenced as of June 30, 2021, the Company has not recorded an operating lease ROU asset or lease liability for this lease in the accompanying condensed consolidated balance sheets. The lease payments are subject to adjustment following the determination of the total project costs of the landlord. The initial estimate of the minimum amount of undiscounted lease payments due under this lease is $63.9 million. The Company expects to invest up to $83.0 million over a five-year period and anticipates that the facility will be operational by the first quarter of 2023. Further, the tabular disclosure of minimum lease payments above does not include payments due under this lease.

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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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