In connection with our 2022 and 2023 Restructuring Plans, restructuring and impairment includes the following (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Impairment of right-of-use assets and property, plant and equipment	$	—	$	—	$	—	$	8,329
Contract termination and other restructuring costs		140		46		756		5,981
Restructuring and impairment	$	140	$	46	$	756	$	14,310

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 nine months ended September 30, 2025, nor for the three months ended September 30, 2024.

The following is a reconciliation of the impairment charges we recorded for the three and nine months ended September 30, 2024, 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

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 nine months ended September 30, 2025 and 2024 (in thousands):


	For the Nine Months Ended September 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
Expense recognized during the period		140			46
Payments during the period		(836	)		(886	)
Liability balances as of September 30, 2025 and 2024, respectively	$	7,608		$	8,822

As of September 30, 2025 and December 31, 2024, we report $3.1 million and $2.8 million, respectively, within accrued expenses and the remaining amounts within other long-term liabilities on our Condensed Consolidated Balance Sheets.