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Leases | 12 Months Ended
--- | ---
Dec. 31, 2020
Leases [Abstract] |
Leases |
6. | Leases
The Company currently has two building leases treated as finance leases. In 2006, the Company entered into a long-term property lease with Alexandria for its corporate headquarters in San Francisco, California, with an initial term of 15 years, scheduled to expire in 2023. The Company has an option to extend the lease for an additional 10 years through 2033. The lease contract provides for a fixed annual rent, with scheduled increases of two percent that occur on each anniversary of the rent commencement date. This lease requires the Company to pay all costs of ownership, operation, and maintenance of the premises, including without limitation all operating costs, insurance costs, and taxes. In 2013, the Company entered into a long-term property lease with Beijing Economic-Technological Development Area (“BDA”) Management Committee for a pilot plant located in Beijing Yizhuang Biomedical Park of BDA. The building is leased for an initial lease term of eight years, scheduled to expire in 2021. Renewal options are not specified within the lease contract. The lease contract provides for fixed quarterly rent payments, with scheduled increases that occur as detailed in the lease contract. This lease requires the Company to pay all operating and maintenance costs, and a fixed amount for property management fees. The Company currently has six additional real estate leases for office spaces in Shanghai and Beijing, China, which are treated as operating leases. These leases have lease terms ranging from two to three years, expiring in 2023. These lease contracts provide for fixed quarterly rent payments, and require the Company to pay operating and maintenance costs, and a fixed amount for property management fees. In addition, the Company has several immaterial lease arrangements in China and U.S. for office equipment, scientific devices and automobile leases, with contracted lease terms ranging from two to four years, treated as finance leases or operating leases, respectively. The Company’s lease assets and related lease liabilities were as follows (in thousands):
|  |  | December 31, |
| Balance Sheet Line Item |  | 2020 |  |  | 2019 |
Assets |  |  |  |  |  |  |  |  |
Finance: |  |  |  |  |  |  |  |  |
Right-of-use assets - cost |  |  | $ | 50,477 |  |  | $ | 49,909 |
Accumulated amortization |  |  |  | (20,871 | ) |  |  | (10,307 | )
Finance lease right-of-use assets, net | Finance lease right-of-use assets |  |  | 29,606 |  |  |  | 39,602 |
Operating: |  |  |  |  |  |  |  |  |
Right-of-use assets - cost |  |  |  | 3,934 |  |  |  | 2,736 |
Accumulated amortization |  |  |  | (1,891 | ) |  |  | (805 | )
Operating lease right-of-use assets, net | Other assets |  |  | 2,043 |  |  |  | 1,931 |
Total lease assets |  |  | $ | 31,649 |  |  | $ | 41,533 |
Liabilities |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |
Finance lease liabilities | Finance lease liabilities, current |  | $ | 12,330 |  |  | $ | 12,351 |
Operating lease liabilities | Accrued and other current liabilities |  |  | 1,188 |  |  |  | 983 |
Non-current: |  |  |  |  |  |  |  |  |
Finance lease liabilities | Finance lease liabilities, non-current |  |  | 25,391 |  |  |  | 37,610 |
Operating lease liabilities | Other long-term liabilities |  |  | 853 |  |  |  | 942 |
Total lease liabilities |  |  | $ | 39,762 |  |  | $ | 51,886 |
The components of lease expense were as follows (in thousands):
|  |  | Years Ended December 31, |
| Statement of Operations Line Item |  | 2020 |  |  | 2019 |
Finance lease cost: |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets | Cost of goods sold; Research and development; Selling, general and administrative expenses |  | $ | 10,369 |  |  | $ | 10,307 |
Interest on lease liabilities | Interest expense |  |  | 1,932 |  |  |  | 2,373 |
Operating lease cost | Cost of goods sold; Research and development; Selling, general and administrative expenses |  |  | 1,151 |  |  |  | 891 |
Sublease income | Selling, general and administrative expenses |  |  | (1,201 | ) |  |  | (1,385 | )
Total lease cost |  |  | $ | 12,251 |  |  | $ | 12,186 |
Supplemental cash flow information related to leases were as follows (in thousands):
|  | Years Ended December 31, |
|  | 2020 |  |  | 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 951 |  |  | $ | 914 |
Operating cash flows from finance leases |  |  | 1,896 |  |  |  | 2,196 |
Financing cash flows from finance leases |  |  | 12,620 |  |  |  | 11,925 |
Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |  |  |  |  |
Finance leases |  |  | 662 |  |  |  | 49,909 |
Operating leases |  | $ | 1,072 |  |  | $ | 2,736 |
Lease term and discount rate were as follows:
|  | December 31, |
|  | 2020 |  |  | 2019 |
Weighted-average remaining lease term (years): |  |  |  |  |  |  |  |
Finance leases |  |  | 2.9 |  |  |  | 3.6 |
Operating leases |  |  | 1.8 |  |  |  | 2.1 |
Weighted-average discount rate: |  |  |  |  |  |  |  |
Finance leases |  |  | 4.39 | % |  |  | 4.42 | %
Operating leases |  |  | 4.74 | % |  |  | 4.75 | %
Maturities of lease liabilities as of December 31, 2020 are as follows (in thousands):
Year Ending December 31, |  | Finance Leases |  |  | Operating Leases |
2021 |  | $ | 13,689 |  |  | $ | 1,142 |
2022 |  |  | 13,886 |  |  |  | 839 |
2023 |  |  | 12,526 |  |  |  | 143 |
Total future lease payments |  |  | 40,101 |  |  |  | 2,124 |
Less: Interest |  |  | (2,380 | ) |  |  | (83 | )
Present value of lease liabilities |  | $ | 37,721 |  |  | $ | 2,041 |

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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