Sangamo occupies approximately 37,900 square feet of office and laboratory space in Richmond, CA through August 2026. The Company leases two additional properties located in Richmond, CA: one occupies approximately 7,700 square feet of research and office space that expires in August 2019, and another one which occupies approximately 41,400 square feet with an original expiration date in December 2021, which has been terminated as of March 31, 2019. Accordingly, all assets and liabilities associated with that lease have been written off as of March 31, 2019. In addition, the Company leases two properties in Valbonne, France. The first lease is for approximately 14,036 square feet of research and office space that expires in June 2022. The second lease, which was executed in March 2019 with a commencement date of April 1, 2019, is for approximately 6,800 square feet of office space and expires in March 2022.

Certain of these leases also 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 it would exercise the options.

In November 2017, the Company executed a lease agreement for approximately 87,700 square feet of office and research and development laboratory facilities in Brisbane, California which expires in May 2029. As of March 31, 2019, certain lease components were still under construction. The commencement date for approximately 35,080 square feet of the office space occurred in January 2019 while the commencement date for the remaining approximately 52,620 square feet is currently expected to be in June 2019. Since the lease has not commenced as of March 31, 2019 for certain lease components, the related ROU asset and lease liability associated with such certain lease components have not yet been measured or recognized on the condensed consolidated balance sheets. The Company has the right to make tenant improvements, including the addition of laboratory space, with a lease incentive allowance of $6.8 million on the currently occupied space and $10.2 million on the lease component that has not yet commenced. The total undiscounted lease payments due over the lease term related to certain lease components with the expected commencement date in June 2019 are $29.3 million. This lease includes two renewal options at the election of the Company to extend the lease for an additional five years each. 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 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 months ended March 31, 2019, the Company incurred $1.2 million of lease costs included in operating expenses in the condensed consolidated statement of operations in relation to these operating leases. Variable lease expense was $0.2 million and was not included in the measurement of the Company’s operating ROU assets and lease liabilities.

Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended March 31, 2019 was $0.5 million and was included in net cash used in operating activities in the Company’s condensed consolidated statements of cash flows.

As of March 31, 2019, the maturities of the Company’s operating lease liabilities were as follows (in thousands):

	Total
Nine months ending December 31, 2019	$	1,845
2020		3,177
2021		3,163
2022		3,173
2023		3,240
Thereafter		14,687
Total lease payments		29,285
Less:
Imputed interest		(7,850	)
Tenant improvement allowance		(6,816	)
Total	$	14,619

Reported as of March 31, 2019:
Operating lease liabilities - current	$	1,320
Operating lease liabilities - long-term		13,299
Total	$	14,619

As of March 31, 2019, the weighted-average remaining lease term is 9.0 years and the weighted-average discount rate used to determine the operating lease liability was 6.9% for the Company’s operating leases.

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.