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Commitments and Contingencies | 3 Months Ended
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Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Leases In August 2018, the Company entered into an operating lease agreement for new office and laboratory space which consists of approximately 68,000 square feet located in South San Francisco, California. The lease term is 127 months beginning August 2018 through February 2029 with an option to extend the term for another seven years which is not reasonably assured of exercise. The Company has made certain tenant improvements, including the addition of laboratory space, and has received $4.5 million of tenant improvement allowances up to March 31, 2020. The rent payments began on March 1, 2019 after an abatement period. In October 2018, the Company entered into an operating lease agreement for new office and laboratory space which consists of 14,943 square feet located in South San Francisco, California. The lease term is 124 months beginning November 2018 through February 2029, with an option to extend the term for another seven years which is not reasonably assured of exercise. The Company has made certain tenant improvements, including the upgrading of current office and laboratory space with a lease incentive allowance of $0.8 million. Rent payments began in November 2018. In February 2019, the Company entered into a lease agreement for approximately 118,000 square feet of space to develop a cell therapy manufacturing facility in Newark, California. The lease has a term of 188 months and is expected to commence in April 2020. Upon certain conditions, the Company has two ten-year options to extend the lease which are not reasonably assured of exercise. Rent payments are expected to begin in early 2021 after an abatement period. The Company is entitled to a tenant improvement allowance of $2.9 million for costs related to the design and construction of certain Company improvements. The Company maintained letters of credit for the benefit of landlords in the amount of $4.3 million which is disclosed a restricted cash as of March 31, 2020 and December 31, 2019, respectively. The balance sheet classification of our lease liabilities were as follows (in thousands):
|  | March 31, 2020 |  | December 31, 2019
Operating lease liabilities |  |  |  |
Current portion included in accrued and other current liabilities |  | $ | 1,807 |  |  |  | $ | 1,679 |
Long-term portion of lease liabilities |  | 51,536 |  |  |  | 51,349 |
Total operating lease liabilities |  | $ | 53,343 |  |  |  | $ | 53,028 |
The components of lease costs for operating leases, which were recognized in operating expenses, were as follows (in thousands):
|  | Three Months Ended March 31 |  |
|  | 2020 |  | 2019
Operating lease cost |  | $ | 1,868 |  |  |  | $ | 1,351 |
Variable lease cost |  | 210 |  | 139
Total lease costs |  | $ | 2,078 |  |  |  | $ | 1,490 |
Cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2020 was $1.4 million and was included in net cash used in operating activities in our condensed statements of cash flows. The undiscounted future lease payments under the lease agreements as of March 31, 2020 were as follows (in thousands:
Year ending December 31: |  |
2020 (remaining 9 months) |  | $ | 4,236 |
2021 |  | 7,633 |
2022 |  | 7,951 |
2023 |  | 8,203 |
2024 |  | 8,467 |
2025 and thereafter |  | 55,398 |
Total undiscounted lease payments |  | 91,888 |
Less: Present value adjustment |  | (34,736) |
Less: Tenant improvement allowance |  | (3,809) |
Total |  | $ | 53,343 |
Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, we use our estimated incremental borrowing rate. The weighted average discount rate used to determine the operating lease liability was 8.34%. As of March 31, 2020, the weighted average remaining lease term for our operating leases is 10.7 years. Other Commitments The Company has entered into certain license agreements for intellectual property which is used as part of our development and manufacturing processes. Each of these respective agreements are generally cancellable by the Company. These agreements require payment of annual license fees and may include conditional milestone payments for achievement of specific research, clinical and commercial events, and royalty payments. The timing and likelihood of any significant conditional milestone payments or royalty payments becoming due was not probable as of March 31, 2020. The Company enters into contracts in the normal course of business that includes arrangements with clinical research organizations, vendors for preclinical research and vendors for manufacturing. These agreements generally allow for cancellation with notice. As of March 31, 2020, the Company had non-cancellable purchase commitments of $5.3 million.

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- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
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