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Restructuring, Impairment and Costs of Terminated Program (Tables) | 9 Months Ended
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Sep. 30, 2024
Restructuring and Related Activities [Abstract] |
Schedule of Restructuring, Impairment and Other Costs of Terminated Program | Restructuring, impairment and costs of terminated program includes the following (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Clinical trial expense, other third-party and employee costs for the wind down of the bempegaldesleukin program |  | $ | — |  |  | $ | 652 |  |  | $ | — |  |  | $ | 3,606 |
Severance and benefit expense |  |  | — |  |  |  | 535 |  |  |  | — |  |  |  | 7,961 |
Impairment of right-of-use assets and property, plant and equipment |  |  | — |  |  |  | 10,173 |  |  |  | 8,329 |  |  |  | 36,628 |
Contract termination and other restructuring costs |  |  | 46 |  |  |  | — |  |  |  | 5,981 |  |  |  | 912 |
Restructuring, impairment and other costs of terminated program |  | $ | 46 |  |  | $ | 11,360 |  |  | $ | 14,310 |  |  | $ | 49,107 |
The following table provides details regarding the severance and benefit expense for the three and nine months ended September 30, 2024 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 |
|  | Nine Months Ended September 30, 2024 |
|  | 2023 Restructuring Plan |  |  | 2022 Restructuring Plan |  |  | Total |
Liability balance as of December 31, 2023 |  | $ | 196 |  |  | $ | — |  |  | $ | 196 |
Expense recognized during the period |  |  | — |  |  |  | — |  |  |  | — |
Payments during the period |  |  | (196 | ) |  |  | — |  |  |  | (196 | )
Liability balance as of September 30, 2024 |  | $ | — |  |  | $ | — |  |  | $ | — |
The following is a reconciliation of the impairment charges we recorded for the nine months ended September 30, 2024 and three and nine months ended September 30, 2023, including the net book values of the sublease assets before the impairment and the fair values of the sublease assets (in thousands):
|  | Nine Months Ended September 30, 2024 |
|  | Property, Plant and Equipment |  |  | Operating Lease Right-of-Use Assets |  |  | Total |
Net book value of impaired facilities before write-off |  | $ | 1,897 |  |  | $ | 12,506 |  |  | $ | 14,403 |
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy |  |  | (855 | ) |  |  | (5,219 | ) |  |  | (6,074 | )
Total impairment of right-of-use assets and property, plant and equipment |  | $ | 1,042 |  |  | $ | 7,287 |  |  | $ | 8,329 |
|  | 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 | )
Impairment expense for facilities |  |  | 1,400 |  |  |  | 9,167 |  |  |  | 10,567 |
(Gain) on sale or disposal of property, plant, and equipment |  |  | (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 |  | $ | 7,206 |  |  | $ | 46,292 |  |  | $ | 53,498 |
Less: Fair value of impaired facilities — Level 3 of Fair Value Hierarchy |  |  | (2,172 | ) |  |  | (14,364 | ) |  |  | (16,536 | )
Book value in excess of fair value |  |  | 5,034 |  |  |  | 31,928 |  |  |  | 36,962 |
Less: Amounts recorded as amortization between March 31, 2023 and September 30, 2023 for Mission Bay facility |  |  | (263 | ) |  |  | (1,370 | ) |  |  | (1,633 | )
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 |
The following are reconciliations of the contract termination and other costs for three and nine months ended September 30, 2024 and 2023. As of September 30, 2024 and December 31, 2023, we repor t $3.2 m illion and $3.0 million, respectively, within accrued expenses and the remaining within other long-term liabilities on our Condensed Consolidated Balance Sheets.
|  | For the Nine Months Ended September 30, |
|  | 2024 |  |  | 2023 |
Liability balances as of December 31, 2023 and 2022, respectively |  | $ | 5,542 |  |  | $ | 7,710 |
Expense recognized during the period |  |  | 975 |  |  |  | 912 |
Payments during the period |  |  | (928 | ) |  |  | (1,129 | )
Liability balances as of March 31, 2024 and 2023, respectively |  | $ | 5,589 |  |  | $ | 7,493 |
Expense recognized during the period |  |  | 4,960 |  |  |  | - |
Payments during the period |  |  | (887 | ) |  |  | (1,264 | )
Liability balances as of June 30, 2024 and 2023, respectively |  | $ | 9,662 |  |  | $ | 6,229 |
Expense recognized during the period |  |  | 46 |  |  |  | - |
Payments during the period |  |  | (886 | ) |  |  | (460 | )
Liability balances as of September 30, 2024 and 2023, respectively |  | $ | 8,822 |  |  | $ | 5,769 |

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- Definition Tabular disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 5.P.3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 420 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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