v3.24.3
Leases
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases
15. Leases
Operating and finance lease assets and liabilities are as follows:
(in thousands)ClassificationSeptember 30,
2024		December 31,
2023
Assets
OperatingOther long-term assets$39,346 $45,325 
FinanceProperty, plant and equipment, net1,235 1,438 
Total leased assets$40,581 $46,763 
Liabilities
Current                     
     OperatingAccrued expenses and other liabilities$2,062 $1,904 
     FinanceCurrent portion of long-term debt and other borrowings996 823 
Noncurrent
     OperatingOther long-term liabilities53,915 54,453 
     FinanceLong-term debt, net and other borrowings613 625 
Total leased liabilities$57,586 $57,805 
On May 4, 2023, the Company entered into a modification to the operating lease (the “Bedford Lease”) for office space in Bedford, Massachusetts (the “Existing Premises”) that was executed in February 2022. The Bedford Lease commenced and was recorded in December 2022 for $11.0 million and the initial term was set to expire in June 2031. The lease modification included a lease of additional office and laboratory space at the Bedford location (the “Additional Premises”) for a term of 15 years and 4 months and extends the term of the lease for the Existing Premises to be coterminous with the term of the lease for the Additional Premises. As a result of the extended term for the Existing Premises, the Company recorded an additional right-of-use asset and liability of $6.0 million in May 2023. The modification also contains a provision to convert the rent schedule of the Existing Premises from gross to triple net in 2024, which may result in an additional adjustment to the right-of-use asset and liability. In September 2023, the landlord provided notice to the Company that its renovations of the Additional Premises were completed. As a result of the notice, the Company recorded an additional right-of-use asset and liability of $23.5 million as of September 1, 2023. To determine the value of the additional right-of-use asset and liability, the Company was required to calculate the discount rate of the lease modification. The discount rate was determined based on the expected lease term and by comparing interest rates in the market for similar borrowings with comparable credit quality of the Company. The lease for the Additional Premises allows for the extension of five years to begin immediately upon the expiration of the original term. On October 7, 2024, the Company executed a second amendment to the Bedford Lease for additional space.
On March 1, 2024, the Company transferred the sublease and completed the asset sale of the Somerset Facility. See Note 7, "Property, Plant and Equipment, Net" for further discussion on the sublease transfer.
Other information related to leases were as follows:
September 30,
2024		December 31,
2023
Weighted-average remaining lease term (Years):
      Operating leases13.013.5
      Finance leases2.42.3
Weighted-average discount rate:
      Operating leases7.5%7.3%
      Finance leases7.4%6.2%
Leases
15. Leases
Operating and finance lease assets and liabilities are as follows:
(in thousands)ClassificationSeptember 30,
2024		December 31,
2023
Assets
OperatingOther long-term assets$39,346 $45,325 
FinanceProperty, plant and equipment, net1,235 1,438 
Total leased assets$40,581 $46,763 
Liabilities
Current                     
     OperatingAccrued expenses and other liabilities$2,062 $1,904 
     FinanceCurrent portion of long-term debt and other borrowings996 823 
Noncurrent
     OperatingOther long-term liabilities53,915 54,453 
     FinanceLong-term debt, net and other borrowings613 625 
Total leased liabilities$57,586 $57,805 
On May 4, 2023, the Company entered into a modification to the operating lease (the “Bedford Lease”) for office space in Bedford, Massachusetts (the “Existing Premises”) that was executed in February 2022. The Bedford Lease commenced and was recorded in December 2022 for $11.0 million and the initial term was set to expire in June 2031. The lease modification included a lease of additional office and laboratory space at the Bedford location (the “Additional Premises”) for a term of 15 years and 4 months and extends the term of the lease for the Existing Premises to be coterminous with the term of the lease for the Additional Premises. As a result of the extended term for the Existing Premises, the Company recorded an additional right-of-use asset and liability of $6.0 million in May 2023. The modification also contains a provision to convert the rent schedule of the Existing Premises from gross to triple net in 2024, which may result in an additional adjustment to the right-of-use asset and liability. In September 2023, the landlord provided notice to the Company that its renovations of the Additional Premises were completed. As a result of the notice, the Company recorded an additional right-of-use asset and liability of $23.5 million as of September 1, 2023. To determine the value of the additional right-of-use asset and liability, the Company was required to calculate the discount rate of the lease modification. The discount rate was determined based on the expected lease term and by comparing interest rates in the market for similar borrowings with comparable credit quality of the Company. The lease for the Additional Premises allows for the extension of five years to begin immediately upon the expiration of the original term. On October 7, 2024, the Company executed a second amendment to the Bedford Lease for additional space.
On March 1, 2024, the Company transferred the sublease and completed the asset sale of the Somerset Facility. See Note 7, "Property, Plant and Equipment, Net" for further discussion on the sublease transfer.
Other information related to leases were as follows:
September 30,
2024		December 31,
2023
Weighted-average remaining lease term (Years):
      Operating leases13.013.5
      Finance leases2.42.3
Weighted-average discount rate:
      Operating leases7.5%7.3%
      Finance leases7.4%6.2%