Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
11. Leases The Company leases facilities and certain equipment under noncancelable operating leases with remaining lease terms of 1.3 years to 10.7 years, some of which include options to extend for up to two terms. These optional periods were not considered in the determination of the right-of-use assets or the lease liabilities as the Company did not consider them reasonably certain that it would exercise such options.The operating lease costs were as follows (in thousands):
Supplemental cash flow information related to the Company’s leases were as follows (in thousands):
The balance sheet classification of the Company’s lease liabilities was as follows (in thousands):
Maturities of lease liabilities were as follows (in thousands):
Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company uses its incremental borrowing rate based on the information available at the lease commencement date. As of September 30, 2020, the weighted average remaining lease term is 9.7 years and the weighted average discount rate used to determine the operating lease liabilities was 4.7%. In the fourth quarter of 2018, the Company entered into an agreement to lease the 4th and 5th floors of corporate office space in San Diego, California with total minimum lease payments of $50.4 million over an initial term of 10 years and 9 months. In February 2020, the Company entered into the first amendment to the lease agreement to lease the 2nd floor of corporate office space in San Diego, California with total minimum lease payments of $25.3 million over an initial term of approximately 10 years and 7 months. In March 2020, the Company entered into the second amendment to the lease agreement which increased the total minimum lease payments of the original corporate office space to $51.4 million. During the three months ended September 30, 2020, the lease for the 4th and 5th floors of corporate office space commenced and the Company capitalized a right of use asset and related lease liability of $40.3 million. The operating lease for the additional corporate office space from the first amendment to the lease agreement is expected to commence in the first quarter of 2021. In connection with this lease and its amendment agreements, the Company established a letter of credit for $3.1 million, which has automatic annual extensions and is fully secured by restricted cash. |