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Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
Finance Leases
Our finance lease assets and liabilities primarily relate to our corporate headquarters in Boston and research site in San Diego (the “Buildings”). These Buildings are classified as finance leases because the present value of the sum of the lease payments associated with the Buildings exceeded substantially all of the fair value of the Buildings at lease inception. We also have an outstanding finance lease for land related to a facility that we own.
Corporate Headquarters
In 2011, we entered into two lease agreements, pursuant to which we lease approximately 1.1 million square feet of office and laboratory space in two buildings in Boston, Massachusetts for a term of 15 years. Base rent payments commenced in 2013 and will continue through December 2028. We utilize this initial period as our lease term. We have an option to extend the lease term for an additional ten years.
San Diego Lease
In 2015, we entered into a lease agreement pursuant to which we lease approximately 170,000 square feet of office and
laboratory space in San Diego, California for a term of 16 years. Base rent payments commenced in 2019 and will continue through May 2034. We utilize this initial period as our lease term. We have an option to extend the lease term for up to two additional five-year terms.
Operating Leases
Our operating leases relate to our real estate leases that are not classified as finance leases.
Jeffrey Leiden Center for Cell and Genetic Therapies
In 2019, we entered into an agreement to lease approximately 269,000 square feet of office and laboratory space near our corporate headquarters in Boston, Massachusetts for a term of 16 years. Base rent payments commenced in 2021 and will continue through November 2036. We utilize the initial period as our lease term. We have an option to extend the lease term for up to two additional ten-year periods.
Please refer to our accounting policy, Leases, in Note A, “Nature of Business and Accounting Policies,” for further information on the accounting treatment for our finance and operating leases.
Aggregate Lease Information
The components of lease cost recorded in our consolidated statements of income were as follows:
202320222021
(in millions)
Operating lease cost$47.8 $35.3 $33.9 
Finance lease cost
Amortization of leased assets42.7 51.0 51.9 
Interest on lease liabilities38.8 43.5 47.4 
Variable lease cost44.6 39.8 33.6 
Sublease income(2.7)(2.7)(0.4)
Net lease cost$171.2 $166.9 $166.4 
Our variable lease cost during 2023, 2022 and 2021 primarily related to operating expenses, taxes and insurance associated with our finance leases.
Our leases are included on our consolidated balance sheets as follows:
As of December 31,
20232022
(in millions)
Finance leases
Property and equipment, net$272.8 $315.5 
Total finance lease assets
$272.8 $315.5 
Other current liabilities$50.6 $40.8 
Long-term finance lease liabilities376.1 430.8 
Total finance lease liabilities
$426.7 $471.6 
Operating leases
Operating lease assets$293.6 $347.4 
Total operating lease assets
$293.6 $347.4 
Other current liabilities$33.1 $48.6 
Long-term operating lease liabilities348.6 379.5 
Total operating lease liabilities
$381.7 $428.1 
Maturities of our finance and operating lease liabilities as of December 31, 2023 were as follows:
Year
Finance Leases
Operating Leases
Total
(in millions)
2024$81.4 $42.1 $123.5 
202589.0 41.4 130.4 
202689.3 40.4 129.7 
202789.7 36.5 126.2 
202890.1 33.5 123.6 
Thereafter
143.5 242.2 385.7 
Total lease payments
583.0 436.1 1,019.1 
Less: amount representing interest
(156.3)(54.4)(210.7)
Present value of lease liabilities
$426.7 $381.7 $808.4 
The weighted-average remaining lease terms and discount rates related to our leases were as follows:
As of December 31,
20232022
Weighted-average remaining lease term (in years)
Finance leases10.0610.60
Operating leases11.2411.57
Weighted-average discount rate
Finance leases
8.20 %8.36 %
Operating leases
2.42 %2.46 %
Supplemental cash flow information related to our leases was as follows:
202320222021
(in millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$62.8 $50.8 $21.5 
Operating cash flows from finance leases$38.4 $42.5 $46.2 
Financing cash flows from finance leases$44.9 $85.5 $47.0 
Right-of-use assets obtained in exchange for lease obligations
Operating leases
$2.4 $58.6 $36.3 
Leases Leases
Finance Leases
Our finance lease assets and liabilities primarily relate to our corporate headquarters in Boston and research site in San Diego (the “Buildings”). These Buildings are classified as finance leases because the present value of the sum of the lease payments associated with the Buildings exceeded substantially all of the fair value of the Buildings at lease inception. We also have an outstanding finance lease for land related to a facility that we own.
Corporate Headquarters
In 2011, we entered into two lease agreements, pursuant to which we lease approximately 1.1 million square feet of office and laboratory space in two buildings in Boston, Massachusetts for a term of 15 years. Base rent payments commenced in 2013 and will continue through December 2028. We utilize this initial period as our lease term. We have an option to extend the lease term for an additional ten years.
San Diego Lease
In 2015, we entered into a lease agreement pursuant to which we lease approximately 170,000 square feet of office and
laboratory space in San Diego, California for a term of 16 years. Base rent payments commenced in 2019 and will continue through May 2034. We utilize this initial period as our lease term. We have an option to extend the lease term for up to two additional five-year terms.
Operating Leases
Our operating leases relate to our real estate leases that are not classified as finance leases.
Jeffrey Leiden Center for Cell and Genetic Therapies
In 2019, we entered into an agreement to lease approximately 269,000 square feet of office and laboratory space near our corporate headquarters in Boston, Massachusetts for a term of 16 years. Base rent payments commenced in 2021 and will continue through November 2036. We utilize the initial period as our lease term. We have an option to extend the lease term for up to two additional ten-year periods.
Please refer to our accounting policy, Leases, in Note A, “Nature of Business and Accounting Policies,” for further information on the accounting treatment for our finance and operating leases.
Aggregate Lease Information
The components of lease cost recorded in our consolidated statements of income were as follows:
202320222021
(in millions)
Operating lease cost$47.8 $35.3 $33.9 
Finance lease cost
Amortization of leased assets42.7 51.0 51.9 
Interest on lease liabilities38.8 43.5 47.4 
Variable lease cost44.6 39.8 33.6 
Sublease income(2.7)(2.7)(0.4)
Net lease cost$171.2 $166.9 $166.4 
Our variable lease cost during 2023, 2022 and 2021 primarily related to operating expenses, taxes and insurance associated with our finance leases.
Our leases are included on our consolidated balance sheets as follows:
As of December 31,
20232022
(in millions)
Finance leases
Property and equipment, net$272.8 $315.5 
Total finance lease assets
$272.8 $315.5 
Other current liabilities$50.6 $40.8 
Long-term finance lease liabilities376.1 430.8 
Total finance lease liabilities
$426.7 $471.6 
Operating leases
Operating lease assets$293.6 $347.4 
Total operating lease assets
$293.6 $347.4 
Other current liabilities$33.1 $48.6 
Long-term operating lease liabilities348.6 379.5 
Total operating lease liabilities
$381.7 $428.1 
Maturities of our finance and operating lease liabilities as of December 31, 2023 were as follows:
Year
Finance Leases
Operating Leases
Total
(in millions)
2024$81.4 $42.1 $123.5 
202589.0 41.4 130.4 
202689.3 40.4 129.7 
202789.7 36.5 126.2 
202890.1 33.5 123.6 
Thereafter
143.5 242.2 385.7 
Total lease payments
583.0 436.1 1,019.1 
Less: amount representing interest
(156.3)(54.4)(210.7)
Present value of lease liabilities
$426.7 $381.7 $808.4 
The weighted-average remaining lease terms and discount rates related to our leases were as follows:
As of December 31,
20232022
Weighted-average remaining lease term (in years)
Finance leases10.0610.60
Operating leases11.2411.57
Weighted-average discount rate
Finance leases
8.20 %8.36 %
Operating leases
2.42 %2.46 %
Supplemental cash flow information related to our leases was as follows:
202320222021
(in millions)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$62.8 $50.8 $21.5 
Operating cash flows from finance leases$38.4 $42.5 $46.2 
Financing cash flows from finance leases$44.9 $85.5 $47.0 
Right-of-use assets obtained in exchange for lease obligations
Operating leases
$2.4 $58.6 $36.3