XML 28 R13.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 9 Months Ended
--- | ---
Sep. 30, 2021
Leases [Abstract] |
Leases |
5. | Leases
The Company’s lease assets and related lease liabilities were as follows (in thousands):
| Balance Sheet Line Item |  | September 30, 2021 |  |  | December 31, 2020 |
Assets |  |  |  |  |  |  |  |  |
Finance: |  |  |  |  |  |  |  |  |
Right-of-use assets cost |  |  | $ | 2,033 |  |  | $ | 50,477 |
Accumulated amortization |  |  |  | (1,262 | ) |  |  | (20,871 | )
Finance lease right-of-use assets, net | Finance lease right-of-use assets |  |  | 771 |  |  |  | 29,606 |
Operating: |  |  |  |  |  |  |  |  |
Right-of-use assets cost |  |  |  | 100,710 |  |  |  | 3,934 |
Accumulated amortization |  |  |  | (6,655 | ) |  |  | (1,891 | )
Operating lease right-of-use assets, net | Operating lease right-of-use assets |  |  | 94,055 |  |  |  | 2,043 |
Total lease assets |  |  | $ | 94,826 |  |  | $ | 31,649 |
Liabilities |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |
Finance lease liabilities | Finance lease liabilities, current |  | $ | 15 |  |  | $ | 12,330 |
Operating lease liabilities | Operating lease liabilities, current |  |  | 10,831 |  |  |  | 1,188 |
Non-current: |  |  |  |  |  |  |  |  |
Finance lease liabilities | Finance lease liabilities, non-current |  |  | 5 |  |  |  | 25,391 |
Operating lease liabilities | Operating lease liabilities, non-current |  |  | 91,478 |  |  |  | 853 |
Total lease liabilities |  |  | $ | 102,329 |  |  | $ | 39,762 |
The Company’s long-term property lease with Alexandria for its corporate headquarters in San Francisco, California, had an initial term of 15 years, scheduled to expire in 2023. The original lease was accounted for as a finance lease upon adoption of ASC 842, Leases (“ASC 842”), at January 1, 2019. On June 1, 2021, the Company entered into an amendment with Alexandria to extend the lease to 2028 (“Lease Amendment”). Under the terms of the Lease Amendment, the Company has two optional rights to each extend the lease for an additional five years. 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 through 2023, and with scheduled increases of three percent that occur on each anniversary of the rent commencement date through 2028. 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. Company determined that the Lease Amendment was a lease modification, effective June 1, 2021, and thus reassessed the lease classification, remeasured the related lease liability using an updated discount rate, and adjusted the related right-of-use asset under the lease modification guidance under the ASC 842. Accordingly, on June 1, 2021, the Company determined that the modified lease be accounted for as an operating lease, and therefore derecognized the previous finance lease right-of-use asset of $24.6 million and the related finance lease liability of $32.6 million, and recognized an operating lease right-of-use asset of $93.2 million and the related operating lease liability of $101.2 million. Starting June 1, 2021, the cash payment related to this lease was classified as an operating activity, the impact of which was approximately $4.5 million to the condensed consolidated statement of cash flow for the nine months ended September 30, 2021. During the first quarter of 2021, after FibroGen Beijing’s previous long-term lease agreement expired, the Company entered into a new lease agreement with the landlord for the same pilot plant located in Beijing Yizhuang Biomedical Park of BDA. The new lease term is five year, scheduled to expire in 2026, and is treated as an operating lease. Accordingly, the Company recorded $3.4 million in the operating right-of-use assets and total operating lease liabilities, respectively. The lease contract provides for fixed quarterly rent payments, and requires the Company to pay operating and maintenance costs. The components of lease expense were as follows (in thousands):
|  |  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
| Statement of Operations Line Item |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization of right-of-use assets | Cost of goods sold; Research and development; Selling, general and administrative expenses |  | $ | 116 |  |  | $ | 2,639 |  |  | $ | 4,509 |  |  | $ | 7,886 |
Interest on lease liabilities | Interest expense |  |  | — |  |  |  | 462 |  |  |  | 627 |  |  |  | 1,511 |
Operating lease cost | Cost of goods sold; Research and development; Selling, general and administrative expenses |  |  | 4,273 |  |  |  | 304 |  |  |  | 6,435 |  |  |  | 868 |
Sublease income | Selling, general and administrative expenses |  |  | (263 | ) |  |  | (301 | ) |  |  | (838 | ) |  |  | (899 | )
Total lease cost |  |  | $ | 4,126 |  |  | $ | 3,104 |  |  | $ | 10,733 |  |  | $ | 9,366 |
Supplemental cash flow information related to leases were as follows (in thousands):
|  | Nine Months Ended September 30, |
|  | 2021 |  |  | 2020 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 6,090 |  |  | $ | 812 |
Operating cash flows from finance leases |  |  | 628 |  |  |  | 1,468 |
Financing cash flows from finance leases |  |  | 5,359 |  |  |  | 9,254 |
Non-cash: Right-of-use assets obtained in exchange for new lease liabilities: |  |  |  |  |  |  |  |
Finance leases |  |  | 330 |  |  |  | 434 |
Operating leases |  |  | 3,509 |  |  |  | 55 |
Non-cash: Increase (decrease) resulting from lease modification: |  |  |  |  |  |  |  |
Finance lease right-of-use assets |  |  | (24,654 | ) |  |  | — |
Operating lease right-of-use assets |  |  | 93,222 |  |  |  | — |
Finance lease liabilities, current |  |  | (12,587 | ) |  |  | — |
Operating lease liabilities, current |  |  | 9,221 |  |  |  | — |
Finance lease liabilities, non-current |  |  | (20,009 | ) |  |  | — |
Operating lease liabilities, non-current |  | $ | 91,943 |  |  | $ | — |
Lease term and discount rate were as follows:
|  | September 30, 2021 |  |  | December 31, 2020 |
Weighted-average remaining lease term (years): |  |  |  |  |  |  |  |
Finance leases |  |  | 1.2 |  |  |  | 2.9 |
Operating leases |  |  | 7.0 |  |  |  | 1.8 |
Weighted-average discount rate: |  |  |  |  |  |  |  |
Finance leases |  |  | 4.58 | % |  |  | 4.39 | %
Operating leases |  |  | 4.75 | % |  |  | 4.74 | %
Maturities of lease liabilities as of September 30, 2021 are as follows (in thousands):
Year Ending December 31, |  | Finance Leases |  |  | Operating Leases |
2021 (remaining three month period) |  | $ | 6 |  |  | $ | 3,697 |
2022 |  |  | 12 |  |  |  | 15,517 |
2023 |  |  | 3 |  |  |  | 13,454 |
2024 |  |  | — |  |  |  | 16,797 |
2025 |  |  | — |  |  |  | 18,192 |
Beyond 2025 |  |  | — |  |  |  | 53,881 |
Total future lease payments |  |  | 21 |  |  |  | 121,538 |
Less: Interest |  |  | (1 | ) |  |  | (19,229 | )
Present value of lease liabilities |  | $ | 20 |  |  | $ | 102,309 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration