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Restructuring and Impairment | 6 Months Ended
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Jun. 30, 2025
Restructuring and Related Activities [Abstract] |
Restructuring and Impairment | Note 8 — Restructuring and Impairment In connection with our 2022 and 2023 Restructuring Plans, restructuring and impairment includes the following (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Impairment of right-of-use assets and property, plant and equipment |  | $ | — |  |  | $ | 8,329 |  |  | $ | — |  |  | $ | 8,329 |
Contract termination and other restructuring costs |  |  | 447 |  |  |  | 4,960 |  |  |  | 616 |  |  |  | 5,935 |
Restructuring and impairment |  | $ | 447 |  |  | $ | 13,289 |  |  | $ | 616 |  |  | $ | 14,264 |
Impairment of Long-Lived Assets As a result of our 2022 and 2023 Restructuring Plans, we decided to seek a sublease for all of our leased spaces in the Third St. Facility and the Mission Bay Facility. Accordingly, we evaluate each space for impairment at each reporting date, as facts and circumstances change. The significant assumptions in our impairment analysis relate to sublease income, including the length of time to enter into a sublease, sublease rental payments, free rent periods, tenant improvement allowances and broker commissions. When available, we use sublease negotiations or agreements, but in the absence of such information, we develop our own subjective estimates based on current real estate trends and market conditions. Accordingly, our estimates are subject to significant risk, and the terms of sublease agreements, if any, and the resulting amount and timing of sublease income, if ever realized, may be materially different than our estimates. As part of our evaluation of each sublease space, we separately compare the estimated undiscounted sublease income, as described above, for each sublease to the net book value of the related long-term assets, which include right-of-use assets and certain property, plant and equipment, primarily for leasehold improvements (collectively, sublease assets). If such sublease income exceeds the net book value of the sublease assets, we do not record an impairment charge. Otherwise, we record an impairment charge by reducing the net book value of the sublease assets to their estimated fair value, which we determined by discounting the estimated sublease income using the estimated borrowing rate of a market participant subtenant. During the three months ended June 30, 2024, as the life sciences and office lease markets continued to deteriorate, we recorded non-cash impairment charges totaling $8.3 million, consisting of $3.9 million for our office and laboratory leased space in the Mission Bay Facility and $4.4 million for our office lease space in the Third St. Facility. For these impairment charges, we developed our estimates of sublease income based on market participant assumptions as described above, and we discounted the sublease income using the estimated borrowing rate of a market participant subtenant, which we estimated to be 6.2% for the three months ended June 30, 2024. We recorded no impairment charges for three and six months ended June 30, 2025, nor for the three months ended March 31, 2024. The following is a reconciliation of the impairment charges we recorde d for the three and six months ended June 30, 2024, including the net book values of the sublease assets before the impairment and the fair values of the sublease assets (in thousands):
|  | Three and Six Months Ended June 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 |
Contract Termination and Other Costs We have incurred significant contract termination costs in connection with our Restructuring Plans. Because we continue to adjust the liability based on updates to our assumptions at each reporting date, we continue to recognize expense as our estimates change until settlement. The following are reconciliations of the contract termination and other costs for three and six months ended June 30, 2025 and 2024 (in thousands):
|  | For the Six Months Ended June 30, |
|  | 2025 |  |  | 2024 |
Liability balances as of December 31, 2024 and 2023, respectively |  | $ | 9,078 |  |  | $ | 5,542 |
Expense recognized during the period |  |  | 169 |  |  |  | 975 |
Payments during the period |  |  | (554 | ) |  |  | (928 | )
Liability balances as of March 31, 2025 and 2024, respectively |  | $ | 8,693 |  |  | $ | 5,589 |
Expense recognized during the period |  |  | 447 |  |  |  | 4,960 |
Payments during the period |  |  | (836 | ) |  |  | (887 | )
Liability balances as of June 30, 2025 and 2024, respectively |  | $ | 8,304 |  |  | $ | 9,662 |
As of June 30, 2025 and December 31, 2024, we repor t $3.3 million and $2.8 million, respectively, within accrued expenses and the remaining amounts within other long-term liabilities on our Condensed Consolidated Balance Sheets.

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- Definition The entire 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 No definition available. + Details
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