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Leases (Notes)
12 Months Ended
Dec. 31, 2019
Leases [Abstract]  
Leases
Leases
The Company leases office space in South Plainfield, New Jersey for its principal office under three noncancelable operating leases through May 2022 and August 2024, in addition to office space in various countries for international employees primarily through workspace providers. The Company also leases certain vehicles, lab equipment, and office equipment under operating leases. The Company’s operating leases have remaining lease terms ranging from 0.1 years to 6.5 years and certain of the leases include renewal options to extend the lease for up to 10 years. Rent expense was approximately $6.0 million, $2.7 million, and $2.2 million for the years ended December 31, 2019, 2018, and 2017.
The components of lease expense were as follows:
 
Twelve Months Ended December 31, 2019
Operating Lease Cost
 
Fixed lease cost
$
4,929

Variable lease cost
694

Short-term lease cost
350

Total operating lease cost
$
5,973


Total operating lease cost is a component of operating expenses on the consolidated statements of operations.
Supplemental balance sheet information related to leases was as follows:
 
December 31, 2019
 
 
Operating lease ROU asset
$
13,693

 
 
Operating lease liabilities- current
$
5,153

Operating lease liabilities- noncurrent
9,018

Total operating lease liability
$
14,171



Operating lease ROU asset is a component of deposits and other assets on the consolidated balance sheet. The current portion of operating lease liability is a component of other current liabilities on the consolidated balance sheet. The long term portion of operating lease liabilities is a component of other long term liabilities on the consolidated balance sheet.
Supplemental lease term and discount rate information related to leases was as follows:
 
December 31, 2019
 
 
Weighted-average remaining lease terms - operating leases (years)
3.38

Weighted-average discount rate - operating leases
7.33
%

Supplemental cash flow information related to leases was as follows:
 
Twelve Months Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
Operating cash flows from operating leases
$
4,466

Right-of-use assets obtained in exchange for lease obligations:
 
Operating leases
$
17,389



Future minimum lease payments under non-cancelable leases as of December 31, 2019 were as follows:
 
Operating Leases

2020
$
5,997

2021
4,144

2022
2,465

2023
1,931

2024 and thereafter
1,446

Total lease payments
15,983

Less: Imputed Interest
1,812

Total
$
14,171



In conjunction with the Asset Acquisition, the Company acquired BioElectron’s lease in Mountainview, California. As substantially all of the fair value of the gross assets acquired was related to PTC743, the relative fair value allocated to the right of use asset and corresponding lease liability for the Mountainview lease was determined to be immaterial, and accordingly is not included in
the tables above. The future minimum lease payments for the Mountainview lease are $1.8 million, $1.8 million, and $1.4 million for 2020, 2021, and 2022, respectively.
As of December 31, 2019, the Company had one operating lease that had not yet commenced, and accordingly, is not reflected in the tables above. On August 4, 2019, the Company and Bristol-Myers Squibb Company, (the “Landlord”), entered into a Lease Agreement (the “Lease”), relating to the lease of approximately 185,000 square feet of office, manufacturing and laboratory space at a facility located in Hopewell Township, New Jersey (the “Campus”).
The rental term of the Lease is currently estimated to commence on July 1, 2020 (the “Commencement Date”). Upon the Commencement Date, the Lease has an initial term of 15 years (the “Initial Term”), with two consecutive 10 years renewal periods at the Company’s option.
The aggregate rent for the Initial Term will be approximately $88.1 million. The rental rate for the renewal periods will be 95% of the Prevailing Market Rate (as defined in the Lease) and determined at the time of the exercise of the renewal. The Company is also responsible for maintaining certain insurance and the payment of proportional taxes, utilities and common area operating expenses. The Lease contains customary events of default, representations, warranties and covenants.