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Balance Sheet Components | 12 Months Ended
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Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract] |
Balance Sheet Components |
6. | Balance Sheet Components
Cash and Cash Equivalents Cash and cash equivalents consisted of the following (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Cash |  | $ | 40,715 |  |  | $ | 38,783 |
US treasury notes and bills |  |  | — |  |  |  | 49,934 |
Money market funds |  |  | 85,551 |  |  |  | 541 |
Total cash and cash equivalents |  | $ | 126,266 |  |  | $ | 89,258 |
Investments The Company’s investments consist of available-for-sale debt investments, marketable equity investments, term deposit and certificate of deposit. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s investments by major investments type are summarized in the tables below (in thousands):
|  | December 31, 2019 |
|  | Amortized Cost |  |  | Gross Unrealized Holding Gains |  |  | Gross Unrealized Holding Losses |  |  | Fair Value |
US treasury notes and bills |  | $ | 426,995 |  |  | $ | 536 |  |  | $ | (25 | ) |  | $ | 427,506 |
Certificates of deposit |  |  | 30,000 |  |  |  | 32 |  |  |  | — |  |  |  | 30,032 |
Bond and mutual funds |  |  | 10,730 |  |  |  | 86 |  |  |  | — |  |  |  | 10,816 |
Equity investments |  |  | 125 |  |  |  | 130 |  |  |  | — |  |  |  | 255 |
Total investments |  | $ | 467,850 |  |  | $ | 784 |  |  | $ | (25 | ) |  | $ | 468,609 |
|  | December 31, 2018 |
|  | Amortized Cost |  |  | Gross Unrealized Holding Gains |  |  | Gross Unrealized Holding Losses |  |  | Fair Value |
US treasury notes and bills |  | $ | 467,296 |  |  | $ | 109 |  |  | $ | (69 | ) |  | $ | 467,336 |
Term deposit |  |  | 80,000 |  |  |  | — |  |  |  | — |  |  |  | 80,000 |
Certificates of deposit |  |  | 30,000 |  |  |  | — |  |  |  | (90 | ) |  |  | 29,910 |
Bond and mutual funds |  |  | 10,464 |  |  |  | 20 |  |  |  | — |  |  |  | 10,484 |
Equity investments |  |  | 125 |  |  |  | 109 |  |  |  | — |  |  |  | 234 |
Total investments |  | $ | 587,885 |  |  | $ | 238 |  |  | $ | (159 | ) |  | $ | 587,964 |
The contractual maturities of the available-for-sale investments and term deposit were as follows (in thousands):
|  | December 31, 2019 |
Within one year |  | $ | 407,491 |
After one year through four years |  |  | 50,047 |
Total debt investments |  |  | 457,538 |
Bond and mutual funds |  |  | 10,816 |
Equity investments |  |  | 255 |
Total investments |  | $ | 468,609 |
The Company periodically reviews its available-for-sale investments and term deposit for other-than-temporary impairment. The Company considers factors such as the duration, severity and the reason for the decline in value, the potential recovery period and its intent to sell. For debt securities, the Company also considers whether (i) it is more likely than not that the Company will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. During the three years ended December 31, 2019, the Company did not recognize any other-than-temporary impairment loss. Inventories Inventories consisted of the following (in thousands):
|  | December 31, 2019 |
Raw materials |  | $ | 325 |
Work-in-progress |  |  | 2,264 |
Finished goods |  |  | 4,298 |
Total inventories |  | $ | 6,887 |
The Company started capitalizing inventory costs in June 2019 when FibroGen China began productions of roxadustat for commercial sales purposes. The provision to write-down excess and obsolete inventory was nominal for the year ended December 31, 2019. Prepaid expenses and other current assets Prepaid expenses and other current assets consisted of the following (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Unbilled contract assets |  | $ | 180,000 |  |  | $ | — |
Deferred revenues from associated contracts |  |  | (54,790 | ) |  |  | — |
Net unbilled contract assets |  |  | 125,210 |  |  |  | — |
Prepaid assets |  |  | 6,464 |  |  |  | 2,705 |
Other current assets |  |  | 1,717 |  |  |  | 2,224 |
Total prepaid expenses and other current assets |  | $ | 133,391 |  |  | $ | 4,929 |
The unbilled contract assets as of December 31, 2019 were related to two regulatory milestones totaling $130.0 million under the Europe Agreement with Astellas associated with the planned MAA submission in Europe, and a $50.0 million regulatory milestone under the U.S./RoW Agreement with AstraZeneca associated with the NDA submission in the U.S., which was submitted in December 2019 and accepted for review in February 2020. See Note 3 for details. Property and Equipment Property and equipment consisted of the following (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Leasehold improvements |  | $ | 101,548 |  |  | $ | 101,200 |
Building shell |  |  | — |  |  |  | 53,880 |
Laboratory equipment |  |  | 17,329 |  |  |  | 16,405 |
Machinery |  |  | 8,217 |  |  |  | 8,382 |
Computer equipment |  |  | 8,399 |  |  |  | 6,473 |
Furniture and fixtures |  |  | 5,822 |  |  |  | 5,690 |
Construction in progress |  |  | 1,792 |  |  |  | 367 |
Total property and equipment |  | $ | 143,107 |  |  | $ | 192,397 |
Less: accumulated depreciation |  |  | (100,364 | ) |  |  | (65,199 | )
Property and equipment, net |  | $ | 42,743 |  |  | $ | 127,198 |
As of December 31, 2018, the Company had $53.9 million building shell cost and $13.5 million accumulated depreciation related to its building leases under build-to-suit arrangements. Upon the adoption of ASC 842 as of January 1, 2019, using the modified retrospective transition method, the Company derecognized these assets previously recognized under ASC 840 build-to-suit designation. Up to December 31, 2018, the leasehold improvements related to these building leases were depreciated over the life of the building under ASC 840. Upon the adoption of ASC 842, these leasehold improvements should have a useful life based on the lease term. As a result, at the adoption date, the Company recorded a cumulative adjustment of $38.9 million to the opening accumulated depreciation for these leasehold improvements so that their net balance equals the undepreciated amount had the useful life of the leasehold improvements always been equal to the lease terms. Refer to Note 2 for details. Depreciation expense for the years ended December 31, 2019, 2018 and 2017 was $11.1 million, $6.6 million, and $6.1 million, respectively. Accrued Liabilities Accrued liabilities consisted of the following (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Preclinical and clinical trial accruals |  | $ | 16,279 |  |  | $ | 35,413 |
API product price adjustment |  |  | 36,324 |  |  |  | — |
Payroll and related accruals |  |  | 19,784 |  |  |  | 21,430 |
Property taxes and other |  |  | 2,044 |  |  |  | 1,095 |
Professional services |  |  | 4,842 |  |  |  | 2,648 |
Other |  |  | 4,543 |  |  |  | 5,537 |
Total accrued liabilities |  | $ | 83,816 |  |  | $ | 66,123 |
The amount of $36.3 million accrued as of December 31, 2019 was related to the change in estimated variable consideration of API product at the time the roxadustat listed price was issued by the Japanese Ministry of Health, Labour and Welfare. Refer to Note 3 for details. Other Long-term Liabilities Other long-term liabilities consisted of the following (in thousands):
|  | December 31, |
|  | 2019 |  |  | 2018 |
Accrued long-term co-promotional expenses |  | $ | 53,071 |  |  | $ | — |
Other long-term tax liabilities |  |  | 8,913 |  |  |  | 8,138 |
Operating lease liabilities, non-current |  |  | 942 |  |  |  | — |
Other |  |  | 1,340 |  |  |  | 1,855 |
Total other long-term liabilities |  | $ | 64,266 |  |  | $ | 9,993 |
The accrued long-term co-promotional expenses of $53.1 million as of December 31, 2019 was related to the estimated amount payable to AstraZeneca for its sales and marketing efforts related to the commercial launch for roxadustat in China. The payment for such amount is not expected to occur within the next year.

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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