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Leases
12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Leases Leases
Adoption of ASC Topic 842, “Leases”
The Company adopted ASC 842 on January 1, 2019, using the prospective approach which provides a method for recording existing leases at adoption using the effective date of the standard as its initial application date. ASC 842 generally requires all leases to be recognized on the balance sheet. In addition, the Company elected the relief package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Company not to reassess whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases and initial direct costs for any existing leases. The reported results for 2020 and 2019 reflect the application of ASC 842 guidance. The adoption of ASC 842 resulted in the recording of an additional lease asset and lease liability of approximately $1.1 million as of January 1, 2019. ASC 842 did not materially impact the Company’s consolidated results of operations, equity or cash flows as of the adoption date or for the periods presented.
Leases
The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for vehicles, corporate offices and certain equipment.
Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Lease agreements with lease and non-lease components are accounted for separately. As the Company’s leases do not provide an implicit rate, the Company used the incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company assumed two operating leases as a result of the Progenics acquisition related to office space at the World Trade Center in New York City, pursuant to a lease agreement expiring in September 2030 and a radiopharmaceutical manufacturing facility in Somerset, New Jersey under a sublease agreement expiring in November 2028, which were recorded as of June 19, 2020, for $18.6 million and $0.6 million, respectively. The Company excluded the Puerto Rico operating lease amounts classified as held for sale as of December 31, 2020.
Leases with an initial term of 12 months or less are not recorded on the balance sheet as the Company has elected to apply the short-term lease exemption. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.
Operating and finance lease assets and liabilities are as follows:
(in thousands)ClassificationDecember 31, 2020December 31, 2019
Assets
OperatingOther long-term assets$18,441 $935 
FinanceProperty, plant and equipment, net525 348 
Total leased assets$18,966 $1,283 
Liabilities
Current                     
     OperatingAccrued expenses and other liabilities$1,164 $193 
     FinanceCurrent portion of long-term debt and other borrowings249 143 
Noncurrent
     OperatingOther long-term liabilities17,501 812 
     FinanceLong-term debt, net and other borrowings246 186 
Total leased liabilities$19,160 $1,334 
The components of lease expense were as follows: 
(in thousands)Year Ended
December 31, 2020
Year Ended
December 31, 2019
Operating lease expense$1,471 $223 
Finance lease expense
      Amortization of ROU assets196 167 
      Interest on lease liabilities21 11 
Short-term lease expense70 91 
Total lease expense$1,758 $492 
Other information related to leases were as follows:
December 31, 2020December 31, 2019
Weighted-average remaining lease term (Years):
      Operating leases9.74.8
      Finance leases2.42.5
Weighted-average discount rate:
      Operating leases4.4%5.1%
      Finance leases5.3%5.4%
(in thousands)Year Ended
December 31, 2020
Year Ended
December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:                   
      Operating cash flows from operating leases1,202230
      Operating cash flows from finance leases2111
      Financing cash flows from finance leases207190
ROU assets obtained in exchange for lease obligations:
      Operating leases19,210
      Finance leases373379
Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows:
(in thousands)
Operating Leases (1)
Finance Leases
2021$1,964 $231 
20222,213 216 
20232,255 78 
20242,297 — 
20252,340 — 
Thereafter12,170 — 
  Total future minimum lease payments23,239 525 
Less: interest4,574 30 
  Total$18,665 $495 

(1)Amounts exclude lease payments of $0.9 million associated with its Puerto Rico subsidiary that is classified as held for sale
Leases Leases
Adoption of ASC Topic 842, “Leases”
The Company adopted ASC 842 on January 1, 2019, using the prospective approach which provides a method for recording existing leases at adoption using the effective date of the standard as its initial application date. ASC 842 generally requires all leases to be recognized on the balance sheet. In addition, the Company elected the relief package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the Company not to reassess whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases and initial direct costs for any existing leases. The reported results for 2020 and 2019 reflect the application of ASC 842 guidance. The adoption of ASC 842 resulted in the recording of an additional lease asset and lease liability of approximately $1.1 million as of January 1, 2019. ASC 842 did not materially impact the Company’s consolidated results of operations, equity or cash flows as of the adoption date or for the periods presented.
Leases
The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for vehicles, corporate offices and certain equipment.
Operating lease right-of-use (“ROU”) assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Lease agreements with lease and non-lease components are accounted for separately. As the Company’s leases do not provide an implicit rate, the Company used the incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company assumed two operating leases as a result of the Progenics acquisition related to office space at the World Trade Center in New York City, pursuant to a lease agreement expiring in September 2030 and a radiopharmaceutical manufacturing facility in Somerset, New Jersey under a sublease agreement expiring in November 2028, which were recorded as of June 19, 2020, for $18.6 million and $0.6 million, respectively. The Company excluded the Puerto Rico operating lease amounts classified as held for sale as of December 31, 2020.
Leases with an initial term of 12 months or less are not recorded on the balance sheet as the Company has elected to apply the short-term lease exemption. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.
Operating and finance lease assets and liabilities are as follows:
(in thousands)ClassificationDecember 31, 2020December 31, 2019
Assets
OperatingOther long-term assets$18,441 $935 
FinanceProperty, plant and equipment, net525 348 
Total leased assets$18,966 $1,283 
Liabilities
Current                     
     OperatingAccrued expenses and other liabilities$1,164 $193 
     FinanceCurrent portion of long-term debt and other borrowings249 143 
Noncurrent
     OperatingOther long-term liabilities17,501 812 
     FinanceLong-term debt, net and other borrowings246 186 
Total leased liabilities$19,160 $1,334 
The components of lease expense were as follows: 
(in thousands)Year Ended
December 31, 2020
Year Ended
December 31, 2019
Operating lease expense$1,471 $223 
Finance lease expense
      Amortization of ROU assets196 167 
      Interest on lease liabilities21 11 
Short-term lease expense70 91 
Total lease expense$1,758 $492 
Other information related to leases were as follows:
December 31, 2020December 31, 2019
Weighted-average remaining lease term (Years):
      Operating leases9.74.8
      Finance leases2.42.5
Weighted-average discount rate:
      Operating leases4.4%5.1%
      Finance leases5.3%5.4%
(in thousands)Year Ended
December 31, 2020
Year Ended
December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:                   
      Operating cash flows from operating leases1,202230
      Operating cash flows from finance leases2111
      Financing cash flows from finance leases207190
ROU assets obtained in exchange for lease obligations:
      Operating leases19,210
      Finance leases373379
Future minimum lease payments under non-cancellable leases as of December 31, 2020 were as follows:
(in thousands)
Operating Leases (1)
Finance Leases
2021$1,964 $231 
20222,213 216 
20232,255 78 
20242,297 — 
20252,340 — 
Thereafter12,170 — 
  Total future minimum lease payments23,239 525 
Less: interest4,574 30 
  Total$18,665 $495 

(1)Amounts exclude lease payments of $0.9 million associated with its Puerto Rico subsidiary that is classified as held for sale