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COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Leases
Sangamo occupies approximately 87,700 square feet of office and research and development laboratory facilities in Brisbane, California, pursuant to a lease that expires in May 2029. Sangamo also occupies approximately 45,600 square feet of research and office space in Richmond, California, pursuant to leases that expire in August 2026. In addition, the Company leases approximately 20,800 square feet of research and office space in Valbonne, France, subject to leases that expire beginning in June 2025 through March 2028.
Certain of these leases include renewal options at the election of the Company to renew or extend the lease for an additional five to ten years. These optional periods have not been considered in the determination of the ROU assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain that it would exercise the options.
The Company performed evaluations of its contracts and determined each of its identified leases are operating leases. For the three and nine months ended September 30, 2020, the Company incurred $4.0 million and $7.7 million of lease costs in relation to these operating leases. These lease costs were included in operating expenses in the Condensed Consolidated Statements of Operations. Variable lease expense was $1.0 million and $1.6 million for the three and nine months ended September 30, 2020 and was not included in the measurement of the Company’s operating ROU assets and lease liabilities. This variable expense consists primarily of the Company’s proportionate share of operating expenses, property taxes and insurance and is classified as lease expense, due to the Company’s election to not separate lease and non-lease components.
Cash paid for amounts included in the measurement of operating lease liabilities for the nine months ended September 30, 2020 was $4.7 million and was included in net cash provided by operating activities in the Company’s Condensed Consolidated Statements of Cash Flows.
As of September 30, 2020, the maturities of the Company’s operating lease liabilities were as follows (in thousands):
Total
Three months ending December 31, 2020:$1,100 
20216,401 
20226,479 
20236,567 
20246,705 
Thereafter
26,156 
Total lease payments
53,408 
Less:
Imputed interest
(11,708)
Total
$41,700 
Reported as of September 30, 2020:
Operating lease liabilities - current (included in Accounts payable and accrued liabilities on the Condensed Consolidated Balance Sheet)
$3,441 
Operating lease liabilities - long-term
38,259 
Total
$41,700 
As of September 30, 2020, the weighted-average remaining lease term is 8.1 years and the weighted-average incremental borrowing rate used to determine the operating lease liability was 6.2% for the Company’s operating leases.
In May 2020, the Company entered into an amendment to an existing lease to acquire approximately 8,500 square feet of research and office space in Richmond, California that expires in August 2026. Total lease payments over the life of this amended lease are approximately $1.6 million. Variable lease payments include the Company’s allocated share of costs incurred and expenditures made by the landlord in the operation and management of the building. The commencement date of this lease was determined to be October 1, 2020. Therefore, the lease is not included in the Company’s operating lease ROU asset or operating lease liabilities as of September 30, 2020.
The Company does not have any financing leases.
Contractual Commitments
The following table sets forth the non-cancelable material contractual commitments under manufacturing-related supplier arrangements as of September 30, 2020 (in thousands):
Party
Total commitments
Expiry date
Brammer Bio MA - a Thermo Fisher Scientific Inc. subsidiary$9,314 December 2021
Lonza Netherlands, B.V.
14,999 December 2022
Total contractual commitments$24,313 
The Company also had $1.9 million of license obligations related to its intellectual property as of September 30, 2020.
Contingencies
Sangamo is not party to any material pending legal proceedings or contingencies. From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business.