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Balance Sheet Components | 12 Months Ended
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Dec. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract] |
Balance Sheet Components |
7. | Balance Sheet Components
Cash and Cash Equivalents Cash and cash equivalents consisted of the following (in thousands):
|  | December 31, |
|  | 2020 |  |  | 2019 |
Cash |  | $ | 88,046 |  |  | $ | 40,715 |
Money market funds |  |  | 590,347 |  |  |  | 85,551 |
Total cash and cash equivalents |  | $ | 678,393 |  |  | $ | 126,266 |
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, 2020 |
|  | Amortized Cost |  |  | Gross Unrealized Holding Gains |  |  | Gross Unrealized Holding Losses |  |  | Fair Value |
Bond and mutual funds |  | $ | 8,147 |  |  | $ | — |  |  | $ | (3 | ) |  | $ | 8,144 |
Equity investments |  |  | 125 |  |  |  | 119 |  |  |  | — |  |  |  | 244 |
Total investments |  | $ | 8,272 |  |  | $ | 119 |  |  | $ | (3 | ) |  | $ | 8,388 |
|  | December 31, 2019 |
|  | Amortized Cost |  |  | Gross Unrealized Holding Gains |  |  | Gross Unrealized Holding Losses |  |  | Fair Value |
U.S. 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 |
The contractual maturities of the available-for-sale investments were as follows (in thousands):
|  | December 31, 2020 |
Within one year - Bond and mutual funds |  | $ | 8,144 |
Equity investments |  |  | 244 |
Total investments |  | $ | 8,388 |
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, 2020, the Company did not recognize any other-than-temporary impairment loss. Inventories Inventories consisted of the following (in thousands):
|  | December 31, |
|  | 2020 |  |  | 2019 |
Raw materials |  | $ | 2,303 |  |  | $ | 325 |
Work-in-progress |  |  | 8,114 |  |  |  | 2,264 |
Finished goods |  |  | 6,113 |  |  |  | 4,298 |
Total inventories |  | $ | 16,530 |  |  | $ | 6,887 |
The Company started capitalizing inventory costs in June 2019 when FibroGen Beijing began productions of roxadustat for commercial sales purposes. The Company started capitalizing pre-launch inventory costs in the U.S. the second quarter of 2020 prior to regulatory approval. As of December 31, 2020, pre-launch inventory capitalized was 29% of the total inventory balance. The provision to write-down excess and obsolete inventory was nominal for the years ended December 31, 2020 and 2019. Prepaid expenses and other current assets Prepaid expenses and other current assets consisted of the following (in thousands):
|  | December 31, |
|  | 2020 |  |  | 2019 |
Unbilled contract assets |  | $ | 2,147 |  |  | $ | 180,000 |
Deferred revenues from associated contracts |  |  | (2,147 | ) |  |  | (54,790 | )
Net unbilled contract assets |  |  | — |  |  |  | 125,210 |
Prepaid assets |  |  | 8,353 |  |  |  | 6,464 |
Other current assets |  |  | 1,807 |  |  |  | 1,717 |
Total prepaid expenses and other current assets |  | $ | 10,160 |  |  | $ | 133,391 |
The unbilled contract assets as of December 31, 2020 were related to unbilled co-development revenue under the China Amendment with AstraZeneca. 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 4, Collaboration Agreements and Revenues, for details. Property and Equipment Property and equipment consisted of the following (in thousands):
|  | December 31, |
|  | 2020 |  |  | 2019 |
Leasehold improvements |  | $ | 102,006 |  |  | $ | 101,548 |
Laboratory equipment |  |  | 18,143 |  |  |  | 17,329 |
Machinery |  |  | 8,312 |  |  |  | 8,217 |
Computer equipment |  |  | 9,545 |  |  |  | 8,399 |
Furniture and fixtures |  |  | 6,128 |  |  |  | 5,822 |
Construction in progress |  |  | 760 |  |  |  | 1,792 |
Total property and equipment |  | $ | 144,894 |  |  | $ | 143,107 |
Less: accumulated depreciation |  |  | (111,247 | ) |  |  | (100,364 | )
Property and equipment, net |  | $ | 33,647 |  |  | $ | 42,743 |
Depreciation expense for the years ended December 31, 2020, 2019 and 2018 was $11.7 million, $11.1 million, and $6.6 million, respectively. Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following (in thousands):
|  | December 31, |
|  | 2020 |  |  | 2019 |
Preclinical and clinical trial accruals |  | $ | 44,113 |  |  | $ | 16,279 |
API product price adjustment |  |  | — |  |  |  | 36,324 |
Payroll and related accruals |  |  | 22,800 |  |  |  | 19,784 |
Contract liabilities to pharmaceutical distributors |  |  | 15,137 |  |  |  | — |
Accrued co-promotion expenses - current |  |  | 11,537 |  |  |  | — |
Roxadustat profit share to AstraZeneca |  |  | 7,007 |  |  |  | — |
Property taxes and other |  |  | 5,970 |  |  |  | 2,044 |
Professional services |  |  | 4,869 |  |  |  | 4,842 |
Other |  |  | 8,088 |  |  |  | 4,543 |
Total accrued and other current liabilities |  | $ | 119,521 |  |  | $ | 83,816 |
The API product price adjustment 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 in the fourth quarter of 2019. This amount was fully paid during the first quarter of 2020. Refer to Note 4, Collaboration Agreements and Revenues, for details. On July 8, 2020, the Parties entered into an amendment to the China Agreement, relating to the development and commercialization of roxadustat in China, which revised, among other things, the arrangements and calculation of the estimated co-promotion expenses payable to AstraZeneca for its sales and marketing efforts associated with the commercial sales for roxadustat in China. As a result, the previously accrued long-term co-promotion expenses were significantly reduced during the third quarter of 2020. $11.5 million of the recalculated accrued co-promotion expenses is anticipated to be paid within the next 12 months, therefore was recorded as a current liability as of December 31, 2020. The profit share liability of $7.0 million to AstraZeneca as of December 31, 2020 represented the profit/loss share between FibroGen Beijing and AstraZeneca that is calculated pursuant to the China Agreement. This liability correspondingly reduced the deferred revenue related to the performance obligation in accordance with the China Agreement. Refer to Note 4, Collaboration Agreements and Revenues, for details. Other Long-term Liabilities Other long-term liabilities consisted of the following (in thousands):
|  | December 31, |
|  | 2020 |  |  | 2019 |
Accrued long-term co-promotion expenses |  | $ | 27,424 |  |  | $ | 53,071 |
Other long-term tax liabilities |  |  | 8,675 |  |  |  | 8,913 |
Operating lease liabilities, non-current |  |  | 853 |  |  |  | 942 |
Other |  |  | 2,690 |  |  |  | 2,481 |
Total other long-term liabilities |  | $ | 39,642 |  |  | $ | 65,407 |
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. As mentioned above, the China Amendment revised the arrangements and calculation of the estimated co-promotion expenses payable to AstraZeneca. As a result, we reversed approximately $84.4 million of previously accrued long-term co-promotion expenses during the third quarter of 2020. $27.4 million of the recalculated accrued co-promotion expenses remained in the long-term liabilities as of December 31, 2020, as it is not anticipated to be paid within the next 12 months.

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