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Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
LEASES LEASES
We have operating leases for office space, laboratory operations, research and development facilities, manufacturing locations, warehouses and certain equipment. We determine if a contract contains a lease at inception or modification of a contract. Our leases generally do not provide an implicit interest rate, and we therefore use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. We used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. Many of our leases contain rental escalation, renewal options and/or termination options that are factored into our determination of lease payments as appropriate. Variable lease payment amounts that cannot be determined at the commencement of the lease are not included in the right-to-use assets or liabilities.
We elected the use of permitted practical expedients of not recording leases on our Consolidated Balance Sheet when the leases have terms of 12 months or less, and we elected not to separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component.
The following table presents the lease balances within the Condensed Consolidated Balance Sheet as of September 30, 2021 and December 31, 2020:
(in thousands)Classification on the Balance SheetSeptember 30, 2021December 31, 2020
Assets
Operating lease assetsOperating lease right-of-use assets$33,502 $37,735 
Finance lease assetsProperty, plant and equipment, net4,111 5,258 
Liabilities
Current
Operating lease liabilitiesCurrent maturities of operating leases9,823 9,028 
Accrued expensesCurrent maturities of finance leases1,809 2,453 
Long-term
Operating lease liabilitiesOperating lease liabilities28,256 29,760 
Other long-term liabilitiesFinance lease liabilities$2,302 $2,805 
Weighted average remaining lease term
Operating leases5.7 years5.4 years
Finance leases2.4 years2.3 years
Weighted average discount rate
Operating leases5.6 %5.8 %
Finance leases6.2 %3.6 %
The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on our Condensed Consolidated Balance Sheet as of September 30, 2021:
(in thousands)OperatingFinance
October 1, 2021 through December 31, 2021$1,454 $671 
202211,254 1,658 
20237,939 1,063 
20245,749 723 
20253,726 247 
Thereafter16,361 4 
Total undiscounted future minimum lease payments46,483 4,366 
Less: Difference between lease payments and discounted lease liabilities8,404 255 
Total lease liabilities$38,079 $4,111 
Expense under operating leases and finance leases was $13.4 million and $1.7 million, respectively, for the three and nine months ended September 30, 2021, which includes $1.4 million of variable lease costs. Expense under operating leases and finance leases was $13.7 million and $2.3 million, respectively, for the three and nine months ended September 30, 2020, which includes $2.3 million of variable lease costs. Operating lease costs and finance lease costs are included within Operating loss in the Condensed Consolidated Statement of Operations. Short-term lease costs were not material.
Supplemental cash flow information is as follows:
(in thousands)For the nine months ended September 30,
20212020
Operating cash out flows from operating leases$12,278 $13,596 
Operating cash out flows from finance leases101 149 
Financing cash out flows from finance leases1,498 2,009 
Total$13,877 $15,754 
LEASES LEASES
We have operating leases for office space, laboratory operations, research and development facilities, manufacturing locations, warehouses and certain equipment. We determine if a contract contains a lease at inception or modification of a contract. Our leases generally do not provide an implicit interest rate, and we therefore use our incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease within a particular currency environment. We used the incremental borrowing rates as of January 1, 2019 for operating leases that commenced prior to that date. Many of our leases contain rental escalation, renewal options and/or termination options that are factored into our determination of lease payments as appropriate. Variable lease payment amounts that cannot be determined at the commencement of the lease are not included in the right-to-use assets or liabilities.
We elected the use of permitted practical expedients of not recording leases on our Consolidated Balance Sheet when the leases have terms of 12 months or less, and we elected not to separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component.
The following table presents the lease balances within the Condensed Consolidated Balance Sheet as of September 30, 2021 and December 31, 2020:
(in thousands)Classification on the Balance SheetSeptember 30, 2021December 31, 2020
Assets
Operating lease assetsOperating lease right-of-use assets$33,502 $37,735 
Finance lease assetsProperty, plant and equipment, net4,111 5,258 
Liabilities
Current
Operating lease liabilitiesCurrent maturities of operating leases9,823 9,028 
Accrued expensesCurrent maturities of finance leases1,809 2,453 
Long-term
Operating lease liabilitiesOperating lease liabilities28,256 29,760 
Other long-term liabilitiesFinance lease liabilities$2,302 $2,805 
Weighted average remaining lease term
Operating leases5.7 years5.4 years
Finance leases2.4 years2.3 years
Weighted average discount rate
Operating leases5.6 %5.8 %
Finance leases6.2 %3.6 %
The following table reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on our Condensed Consolidated Balance Sheet as of September 30, 2021:
(in thousands)OperatingFinance
October 1, 2021 through December 31, 2021$1,454 $671 
202211,254 1,658 
20237,939 1,063 
20245,749 723 
20253,726 247 
Thereafter16,361 4 
Total undiscounted future minimum lease payments46,483 4,366 
Less: Difference between lease payments and discounted lease liabilities8,404 255 
Total lease liabilities$38,079 $4,111 
Expense under operating leases and finance leases was $13.4 million and $1.7 million, respectively, for the three and nine months ended September 30, 2021, which includes $1.4 million of variable lease costs. Expense under operating leases and finance leases was $13.7 million and $2.3 million, respectively, for the three and nine months ended September 30, 2020, which includes $2.3 million of variable lease costs. Operating lease costs and finance lease costs are included within Operating loss in the Condensed Consolidated Statement of Operations. Short-term lease costs were not material.
Supplemental cash flow information is as follows:
(in thousands)For the nine months ended September 30,
20212020
Operating cash out flows from operating leases$12,278 $13,596 
Operating cash out flows from finance leases101 149 
Financing cash out flows from finance leases1,498 2,009 
Total$13,877 $15,754