Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.19.3
Leases
9 Months Ended
Sep. 30, 2019
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.
The following table presents the lease balances within the Condensed Consolidated Balance Sheet as of September 30, 2019:
(in thousands)
 
Classification on the Balance Sheet
 
September 30, 2019
Assets
 
 
 
 
Operating lease assets
 
Operating lease right-of-use assets
 
$
35,826

Finance lease assets
 
Property, plant and equipment, net
 
7,308

 
 
 
 
 
Liabilities
 
 
 
 
Current
 
 
 
 
Operating lease liabilities
 
Current maturities of operating leases
 
12,921

Accrued expenses
 
Current maturities of finance leases
 
2,983

Long-term
 
 
 
 
Operating lease liabilities
 
Operating lease liabilities
 
23,318

Other long-term liabilities
 
Finance lease liabilities
 
$
4,325

 
 
 
 
 
Weighted average remaining lease term
 
 
 
 
Operating leases
 
 
 
2.6 years

Finance leases
 
 
 
2.4 years

Weighted average discount rate
 
 
 
 
Operating leases
 
 
 
5.7
%
Finance leases
 
 
 
4.9
%

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, 2019:
(in thousands)
 
Operating
Finance
October 1, 2019 through December 31, 2019
 
$
3,938

$
923

2020
 
11,929

2,845

2021
 
8,471

2,133

2022
 
5,700

1,077

2023
 
4,294

486

Thereafter
 
7,215

203

Total undiscounted future minimum lease payments
 
41,547

7,667

Less: Difference between lease payments and discounted lease liabilities
 
5,308

360

Total lease liabilities
 
$
36,239

$
7,307


Expense under operating leases and finance leases was $15.3 million and $2.3 million, respectively, for the nine months ended September 30, 2019, and includes $2.6 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)
 
Nine months ended September 30, 2019
Operating cash out flows from operating leases
 
$
15,664

Operating cash out flows from finance leases
 
306

Financing cash out flows from finance leases
 
2,165

Total
 
$
18,135