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Restructuring, Impairment and Costs of Terminated Program, and Impairment of Goodwill (Tables) | 9 Months Ended
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Sep. 30, 2023
Restructuring and Related Activities [Abstract] |
Schedule of Restructuring, Impairment and Other Costs of Terminated Program | Restructuring, impairment and other costs of terminated program pertaining to the 2022 Restructuring Plan includes the following (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
Clinical trial expense, other third-party and employee costs for the wind down of the bempegaldesleukin program |  | $ | 652 |  |  | $ | 8,530 |  |  | $ | 3,606 |  |  | $ | 28,938 |
Severance and benefits expense |  |  | — |  |  |  | 2,077 |  |  |  | — |  |  |  | 29,827 |
Impairment of right-of-use assets and property, plant and equipment |  |  | 1,467 |  |  |  | 1,200 |  |  |  | 14,728 |  |  |  | 58,521 |
Contract termination and other restructuring costs |  |  | — |  |  |  | 5,023 |  |  |  | 878 |  |  |  | 7,064 |
Restructuring, impairment and costs of terminated program |  | $ | 2,119 |  |  | $ | 16,830 |  |  | $ | 19,212 |  |  | $ | 124,350 |
Non-cash impairment charges of lease assets pertaining to the 2022 Restructuring Plan include the following (in thousands):
|  | Three-months Ended |
Sublease Spaces |  | June 30, 2022 |  |  | September 30, 2022 |  |  | December 31, 2022 |  |  | March 31, 2023 |  |  | June 30, 2023 |  |  | September 30, 2023 |  |  | Total |
Mission Bay Blvd. South |  | $ | 3,000 |  |  | $ | 1,200 |  |  | $ | 361 |  |  | $ | — |  |  | $ | 7,055 |  |  | $ | 1,467 |  |  | $ | 13,083 |
Third St |  |  | 49,200 |  |  |  | — |  |  |  | 12,000 |  |  |  | — |  |  |  | 6,200 |  |  |  | — |  |  |  | 67,400 |
Total impairment of lease assets |  | $ | 52,200 |  |  | $ | 1,200 |  |  | $ | 12,361 |  |  | $ | — |  |  | $ | 13,255 |  |  | $ | 1,467 |  |  | $ | 80,483 |
T Restructuring, impairment and other costs of terminated program pertaining to the 2023 Restructuring Plan includes the following (in thousands):
|  | Three Months Ended September 30, 2023 |  |  | Nine Months Ended September 30, 2023 |
Severance and benefit expense |  | $ | 535 |  |  | $ | 7,961 |
Impairment of right-of-use assets and property, plant and equipment |  |  | 8,706 |  |  |  | 21,900 |
Contract termination and other restructuring costs |  |  | — |  |  |  | 34 |
Restructuring, impairment and costs of terminated program |  | $ | 9,241 |  |  | $ | 29,895 |
The following table provides details regarding the severance and benefit expense for the three and nine months ended September 30, 2023 pursuant to the 2023 Restructuring Plan and a reconciliation of the severance and benefits liability for the three and nine months ended September 30, 2023 pursuant to the 2022 and 2023 Restructuring Plans, which we report within accrued expenses on our Condensed Consolidated Balance Sheet (in thousands):
|  | Nine Months Ended September 30, 2023 |
|  | 2023 Restructuring Plan |  |  | 2022 Restructuring Plan |  |  | Total |
Liability balance as of December 31, 2022 |  | $ | — |  |  | $ | 3,299 |  |  | $ | 3,299 |
Expense recognized during the period |  |  | 5,483 |  |  |  | — |  |  |  | 5,483 |
Payments during the period |  |  | — |  |  |  | (3,299 | ) |  |  | (3,299 | )
Liability balance as of March 31, 2023 |  | $ | 5,483 |  |  | $ | — |  |  | $ | 5,483 |
Expense recognized during the period |  |  | 1,943 |  |  |  | — |  |  |  | 1,943 |
Payments during the period |  |  | (6,624 | ) |  |  | — |  |  |  | (6,624 | )
Liability balance as of June 30, 2023 |  | $ | 802 |  |  | $ | — |  |  | $ | 802 |
Expense recognized during the period |  |  | 535 |  |  |  | — |  |  |  | 535 |
Payments during the period |  |  | (887 | ) |  |  | — |  |  |  | (887 | )
Liability balance as of September 30, 2023 |  | $ | 450 |  |  | $ | — |  |  | $ | 450 |
Additionally, we recorded an impairment expense primarily for software which we planned to abandon and certain excess equipment based on the estimated income from selling such assets. We recorded impairment charges as follows (in thousands):
|  | Nine months ended September 30, 2022 |
|  | Property, Plant and Equipment |  |  | Operating Lease Right-of-Use Assets |  |  | Total |
Net book value of impaired facilities before write-off |  | $ | 16,348 |  |  | $ | 74,191 |  |  | $ | 90,539 |
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy |  |  | (6,976 | ) |  |  | (30,162 | ) |  |  | (37,138 | )
Impairment expense for facilities |  |  | 9,372 |  |  |  | 44,029 |  |  |  | 53,401 |
Impairment of other property, plant and equipment |  |  | 5,120 |  |  |  | — |  |  |  | 5,120 |
Total impairment of right-of-use assets and property, plant and equipment |  | $ | 14,492 |  |  | $ | 44,029 |  |  | $ | 58,521 |
The following table presents a reconciliation of the non-cash impairment charges we recorded for these long-lived assets for the three and nine months ended September 30, 2023 (in thousands):
|  | Three Months Ended September 30, 2023 |
|  | Property, Plant and Equipment |  |  | Operating Lease Right-of-Use Assets |  |  | Total |
Net book value of impaired facilities before write-off |  | $ | 3,050 |  |  | $ | 18,830 |  |  | $ | 21,880 |
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy |  |  | (1,650 | ) |  |  | (9,663 | ) |  |  | (11,313 | )
Total impairment of right-of-use assets and property, plant and equipment |  | $ | 1,400 |  |  | $ | 9,167 |  |  | $ | 10,567 |
(Gain) on sale or disposal of property, plant and equipment, net |  |  | (394 | ) |  |  | — |  |  |  | (394 | )
Total impairment of right-of-use assets and property, plant and equipment |  | $ | 1,006 |  |  | $ | 9,167 |  |  | $ | 10,173 |
|  | Nine Months Ended September 30, 2023 |
|  | Property, Plant and Equipment |  |  | Operating Lease Right-of-Use Assets |  |  | Total |
Net book value of impaired facilities before write-off |  | $ | 10,257 |  |  | $ | 63,656 |  |  | $ | 73,913 |
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy |  |  | (5,486 | ) |  |  | (33,098 | ) |  |  | (38,584 | )
Impairment expense for facilities |  |  | 4,771 |  |  |  | 30,558 |  |  |  | 35,329 |
Impairment of other property, plant and equipment |  |  | 1,299 |  |  |  | — |  |  |  | 1,299 |
Total impairment of right-of-use assets and property, plant and equipment |  | $ | 6,070 |  |  | $ | 30,558 |  |  | $ | 36,628 |

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