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Leases | 3 Months Ended
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Mar. 31, 2022
Leases [Abstract] |
Leases | (10) Leases The Company leases office space under operating leases. The lease liability is initially measured at the present value of the lease payments to be made over the lease term. Lease payments are comprised of the fixed and variable payments to be made by the Company to the lessor during the lease term minus any incentives or rebates or abatements receivable by the Company from the lessor or the owner. Payments for non-lease components do not form part of lease payments. The lease term includes renewal options only if these options are specified in the lease agreement and if failure to exercise the renewal option imposes a significant economic penalty for the Company. As there are no significant economic penalties, renewal cannot be reasonably assured and the lease terms for the office space do not include any renewal options. The Company has not entered into any leases with related parties. The Company accounts for short-term leases (i.e., lease term of 12 months or less) by making the short-term lease policy election and will not apply the recognition and measurement requirements of ASC 842. The Company has determined that the rate implicit in the lease is not determinable and the Company does not have borrowings with similar terms and collateral. Therefore, the Company considered a variety of factors, including the Company’s credit rating, observable debt yields from comparable companies with a similar credit profile and the volatility in the debt market for securities with similar terms, in determining that 11.5% was reasonable to use as the incremental borrowing rate for purposes of the calculation of lease liabilities and a change of 1% would not result in a material change to the Company’s condensed consolidated financial statements. On February 5, 2019, the Company entered into a lease agreement for new office space in Bridgewater, New Jersey, or the New Jersey Lease. The New Jersey Lease commenced on August 15, 2019, or the New Jersey Commencement Date, for an 11-year period, with two five-year renewal options. Subject to the terms of the New Jersey Lease, Amarin will have a one-time option to terminate the agreement effective on the first day of the 97 th month after the New Jersey Commencement Date upon advance written notice and a termination payment specified in the New Jersey Lease. Under the New Jersey Lease, the Company paid monthly rent of approximately $0.1 million for the first year following the New Jersey Commencement Date, and such rent increases by a nominal percentage every year following the first anniversary of the New Jersey Commencement Date. In addition, Amarin receives certain abatements subject to the limitations in the New Jersey Lease. On November 17, 2021, the Company entered into a lease agreement for new office space in Zug Switzerland, or the Zug Lease. The Zug Lease commenced on February 1, 2022, or the Zug Commencement Date, for a 5-year period, with one five-year renewal option. Under the Zug Lease, the Company will pay annual rent of approximately $0.2 million for the first year following the Zug Commencement Date, and such rent increases by a nominal percentage every year following the first anniversary of the Zug Commencement Date. In addition to the real estate leases, the Company leases various vehicles with terms ranging from month to month up to 36 months. As of March 31, 2022 and December 31, 2021, the total operating lease liability is $11.3 million and $10.3 million, respectively, and the total operating lease right-of-use asset is $8.7 million and $7.7 million, respectively. The lease expense for the three months ended March 31, 2022 and 2021 is approximately $0.6 million and $0.4 million, respectively. The table below depicts a maturity analysis of the Company’s undiscounted payments for its operating lease liabilities and their reconciliation with the carrying amount of lease liability presented in the statement of financial position as of March 31, 2022:
|  | Undiscounted lease payments ($000s) |
Remainder of 2022 |  | $ | 1,626 |
2023 |  |  | 2,182 |
2024 |  |  | 2,138 |
2025 |  |  | 2,095 |
2026 |  |  | 2,129 |
2027 and thereafter |  |  | 7,213 |
Total undiscounted payments |  | $ | 17,383 |
Discount Adjustments |  | $ | (6,048 | )
Current operating lease liability |  | $ | 937 |
Long-term operating lease liability |  | $ | 10,398 |

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- References No definition available. + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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