XML 30 R20.htm IDEA: XBRL DOCUMENT

Restructuring, Impairment and Costs of Terminated Program, and Impairment of Goodwill (Tables)

9 Months Ended

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