The Company has real estate operating leases in Cambridge, Andover, Burlington and Bedford, Massachusetts, Dublin and Columbus, Ohio, and Durham, North Carolina that provide for scheduled annual rent increases throughout each lease’s term. The Company has also identified leases embedded in certain of its manufacturing and supply agreements as the Company determined that it controls the use of the facilities and related equipment therein. For more information related to the lease embedded in manufacturing and supply agreements with Catalent, Inc. (“Catalent”), please refer to Note 21, Commitments and Contingencies.

On April 22, 2022, the Company entered into a lease agreement (the “Bedford Lease”) for 288,000 square feet of to-be-constructed research and development and manufacturing space in Bedford, Massachusetts. The term of the Bedford Lease commences upon the landlord’s completion of the initial construction of the core and shell of the building, at which time the Company will obtain control of the premises and commence internal construction activities. The initial term of the Bedford Lease is anticipated to terminate on December 31, 2038. The Company has two options to extend the lease for a period of ten years each, exercisable under certain conditions and at a market rate determined in accordance with the lease agreement.

In May 2022, in connection with the execution of the Bedford Lease, the Company issued a letter of credit collateralized by cash deposits of approximately $8.4 million, which was included in other non-current assets on the Company’s consolidated balance sheets. Such letter of credit shall be reduced to approximately $5.6 million at the commencement of the fourth rent year, provided certain conditions set forth in the Bedford Lease are satisfied.

Undiscounted minimum rent payments due over the term of the lease aggregate to $307.4 million. Additionally, the Company is responsible for reimbursing the landlord for the Company’s share of the property’s operating expenses and property taxes. The Bedford Lease also provides for a tenant improvement allowance from the landlord of up to $72.0 million to be used towards costs incurred by the Company in the design and construction of the premises.

The Bedford Lease commenced in May 2023 as the Company obtained control of the premises (the “Bedford Lease Commencement”). The Company has a lease liability and ROU asset of $94.7 million and $71.6 million, respectively, on the consolidated balance sheets as of December 31, 2023 related to the Bedford Lease. The Company recorded the $72.0 million tenant improvement allowance as a reduction to the ROU asset and lease liability at the date of the Bedford Lease Commencement. Tenant improvement costs incurred by the Company that had been reimbursed by the landlord totaled $13.1 million as of December 31, 2023 and are recorded as an increase to the lease liability within the Company's consolidated balance sheets.

On December 22, 2018, the Company entered into a lease agreement for a research and development facility in Columbus, Ohio. On May 19, 2022 (the “Columbus Lease Amendment Date”), the Company entered into an amendment to the Columbus Lease to expand the footprint and extend the lease term from June 2026 to December 2036 (the “Columbus Amendment,” together with the Columbus Amendment, the lease agreement is referred to as the “Columbus Lease”). The Columbus Amendment will expand from its current form of approximately 78,000 square feet to 167,000 square feet through a series of expansion spaces commencing at various periods through January 1, 2025.

Each expansion space commences on the date when the landlord will deliver control of that space for the Company to carry out design and construction activities (the “Columbus Commencement Date”). The Company is obligated to pay rent on each expansion space nine months after the Columbus Commencement Date. The Columbus Lease expires on December 31, 2036, and the Company has options to extend the lease by five years in both 2036 and 2041. Each option is exercisable under certain conditions and at a market rate determined in accordance with the lease agreement. The total undiscounted rent payments due over the 15-year term from the Columbus Lease Amendment Date aggregate to $38.9 million.

The Company commenced design and construction activities on areas of the premises of approximately 18,000 square feet (the “Second Expansion Space”), 36,000 square feet (the “Initial Expansion Space”) and 19,000 square feet (the “Third Expansion Space”) on June 1, 2022, October 1, 2022 and September 1, 2023, respectively. As a result, it was determined that the lease related to the Second Expansion Space, the Initial Expansion Space and the Third Expansion Space had commenced on those three dates, respectively. The total ROU asset and lease liability associated with the Columbus Lease, inclusive of the Third Expansion Space, the Second Expansion Space and the Initial Expansion Space, was $11.4 million and $18.5 million, respectively, as of December 31, 2023.

As of December 31, 2023, ROU assets for operating leases were $130.0 million and operating lease liabilities were $158.8 million. The following table contains a summary of the lease costs recognized and other information pertaining to the Company’s operating leases for the periods indicated:


	For the Year Ended December 31,
	2023			2022
	(in thousands)
Lease cost
Operating lease cost	$	29,895		$	18,184
Variable lease cost		38,442			35,505
Total lease cost	$	68,337		$	53,689

Other information
Operating lease payments	$	21,608		$	20,778
Operating lease liabilities arising from obtaining ROU assets	$	80,203		$	40,006
Weighted-average remaining lease term	11.2 years			6.4 years
Weighted-average discount rate		9.1	%		8.3	%

The following table summarizes maturities of lease liabilities and the reconciliation of lease liabilities as of December 31, 2023:


	For the Year Ended December 31, 2023
	(in thousands)
2024	$	33,718
2025		34,477
2026		28,006
2027		27,995
2028		28,611
Thereafter		245,835
Total minimum lease payments		398,642
Less: imputed interest		(239,832	)
Total operating lease liabilities	$	158,810
Included in the consolidated balance sheet:
Current portion of lease liabilities within other current liabilities	$	17,845
Lease liabilities, non-current		140,965
Total operating lease liabilities	$	158,810