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LEASES
6 Months Ended
Jun. 30, 2019
Leases [Abstract]  
LEASES

12. LEASES

 

The Company’s operating leases for its Cambridge, Andover and Burlington, Massachusetts and Dublin and Columbus, Ohio facilities provide for scheduled annual rent increases throughout each lease’s term. A summary of these leases are as follows:

 

In June 2013, the Company entered into a lease agreement (the “Cambridge Lease”) for its headquarters located in Cambridge, Massachusetts. In April and September 2018 and June 2019, the Company entered into the seventh, eighth, and ninth amendment, respectively, to its Cambridge Lease which extended the original term of the lease to September 30, 2025 and increased the total rental space to approximately 170,929 square feet.

In March and July of 2018, the Company entered into sublease agreements in Andover, Massachusetts, to lease a total of 23,102 square feet of office and lab space. These subleases expire in December 2020.

In November 2018, the Company entered into a sublease agreement in Burlington, Massachusetts, to lease 44,740 square feet of office and lab space. The sublease expires in January 2022.

In December 2018, the Company entered into lease agreements in Dublin and Columbus, Ohio, to lease 22,600 square feet and 77,679 square feet, respectively, of office and lab space. The leases expire in November 2019 and June 2026, respectively.

The adoption of ASC 842 resulted in the recognition of operating lease liabilities and ROU assets of $60.1 million and $42.5 million, respectively, on the Company’s balance sheet relating to its leases for its corporate headquarters and its office and lab space. Further, the Company reclassified upon adoption $18.0 million of deferred rent which served to reduce the ROU assets recognized on the balance sheet, in accordance with the transition guidance.

As of June 30, 2019, operating lease assets were $39.4 million and operating lease liabilities were $57.4 million. Amounts related to financing leases were immaterial. The following table contains a summary of the lease costs recognized under Topic 842 and other information pertaining to the Company’s operating leases for the three and six months ended June 30, 2019:

 

Operating Lease

(in thousands)

 

For the three

months ended

June 30, 2019

 

 

For the six

months ended

June 30, 2019

 

Lease cost

 

 

 

 

 

 

 

 

Operating lease cost

 

 

2,530

 

 

 

5,132

 

Variable lease cost

 

 

809

 

 

 

1,938

 

Total lease cost

 

$

3,339

 

 

$

7,070

 

 

 

 

 

 

 

 

 

 

Other information

 

 

 

 

 

 

 

 

Operating lease payments

 

 

 

 

 

 

4,816

 

Operating lease liabilities arising from obtaining ROU assets

 

 

 

 

 

 

 

Weighted average remaining lease term

 

 

 

 

 

5.9 years

 

Weighted average discount rate

 

 

 

 

 

 

7.50

%

 

Future minimum lease payments under the Company’s non-cancelable operating leases as of June 30, 2019, are as follows:

 

Maturity of lease liability

(in thousands)

 

As of

June 30, 2019

 

2019 (July - December)

 

$

5,467

 

2020

 

 

11,395

 

2021

 

 

12,558

 

2022

 

 

10,737

 

2023

 

 

10,877

 

Thereafter

 

 

20,484

 

Total minimum lease payments

 

 

71,518

 

Less: imputed interest

 

 

(14,148

)

Total operating lease liabilities

 

$

57,370

 

Included in the condensed consolidated balance sheet:

 

 

 

 

Current portion of lease liabilities within other current liabilities

 

$

7,161

 

Lease liabilities

 

 

50,209

 

Total operating lease liabilities

 

$

57,370

 

 

Future minimum lease payments under the Company’s non-cancelable operating leases as of December 31, 2018, are as follows:

 

Maturity of lease liability

(in thousands)

 

As of

December 31, 2018

 

2019

 

$

11,588

 

2020

 

 

11,395

 

2021

 

 

12,558

 

2022

 

 

10,757

 

2023

 

 

10,898

 

Thereafter

 

 

20,524

 

Total minimum lease payments

 

$

77,720