IONIS PHARMACEUTICALS INCIONS
IONIS PHARMACEUTICALS INC Leases Disclosure
Operating Leases
Carlsbad Leases
We lease a facility adjacent to our manufacturing facility that has laboratory and office space that we use to support our manufacturing
facility. We lease this space under a non-cancelable operating lease. In 2020, we exercised our option to extend our lease, extending our lease term from June 2021 to August 2026. We have one remaining option to extend the lease for an additional five-year
period.
We also lease an additional office space and warehouse space in Carlsbad. We lease these spaces under non-cancelable operating leases. In
2022, we exercised our option to extend the office space lease, extending our term from January 2023 to May 2027. We have no remaining options
to extend this lease. Our warehouse space lease in Carlsbad has an initial term ending in 2028 with no options to extend the lease.
As discussed above in the section titled, Financing Arrangements, we lease our headquarters, which includes our primary R&D facility, as part of a sale and leaseback transaction that closed in 2022. The initial lease term for our headquarters facilities is 15 years with options to extend the lease for two
additional terms of five years each. We determined at lease inception that it was not reasonably certain that we would exercise any of the
options to extend the lease. We expect our lease payments over the initial term to total approximately $280 million. In connection with the
transfer of legal ownership of the two lots of undeveloped land to the real estate investor, we entered into a build-to-suit lease agreement
with the same real estate investor who will build a new R&D facility for us on those lots. The lease will commence once the structure of this new facility is completed.
Oceanside Lease
In 2022, we entered into a build-to-suit lease agreement to lease a development chemistry and manufacturing facility to be constructed by
the lessor in Oceanside, California. We capitalized costs that we incurred related to the design and development of tenant improvements as construction-in-progress in our consolidated balance sheets. In 2023, we reached a mutual agreement with the
lessor to terminate the lease agreement. As a result, we recorded a charge of $20 million, primarily associated with the impairment of
construction-in-progress assets, within in our consolidated statements of operations.
Boston Leases
We entered into an operating lease agreement for office space located in Boston, Massachusetts which commenced in August 2018. We are
leasing this space under a non-cancelable operating lease with an initial term ending after 123 months and an option to extend the lease for an
additional five-year term. Under the lease agreement, we received a three-month free rent period.
In 2022, we entered into a sublease agreement for our office space located in Boston, Massachusetts. The sublease commencement date was in
January 2022 when the office space was ready for our tenant’s occupancy. We are subleasing this space under a non-cancelable operating sublease with a sublease term ending 83 months following the sublease commencement date with no option to extend the sublease. Under the sublease
agreement we provided a seven-month free rent period, which commenced in January 2022. We will receive lease payments over the sublease term
totaling $9.6 million.
We entered into an operating lease agreement for another office space located in Boston, Massachusetts which commenced in 2021. We are
leasing this space under a non-cancelable operating lease with an initial term ending 91 months following the lease commencement date and an
option to extend the lease for additional five-year
term. Under the lease agreement, we received a seven-month free rent period, which commenced in November 2021. Our lease payments over the
initial term total $6.8 million.
When we determined our lease term for our operating lease right-of-use assets and lease liabilities for these leases, we did not include
the extension options for these leases in the original lease term because it was not reasonably certain we would exercise those extension options.
Amounts related to our operating leases were as follows (dollar amounts in millions):
|
At December 31, 2024
|
||||
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Right-of-use operating lease assets
|
$
|
161.9
|
||
|
Operating lease liabilities
|
$
|
170.9
|
||
|
Weighted average remaining lease term
|
12.1 years
|
|||
|
Weighted average discount rate
|
6.9
|
%
|
||
During the years ended December 31, 2024,
2023, and 2022 we paid $20.5 million, $20.1 million and $4.0 million of lease payments, which were included in operating activities in our consolidated statements of cash flows.
As of December 31, 2024,
the future payments for our operating lease liabilities are as follows (in thousands):
|
Operating Leases
|
||||
|
Year ending December 31,
|
||||
|
2025
|
$
|
20,870
|
||
|
2026
|
21,032
|
|||
|
2027
|
21,054
|
|||
|
2028
|
20,973
|
|||
|
2029
|
18,687
|
|||
|
Thereafter
|
157,622
|
|||
|
Total minimum lease payments
|
260,238
|
|||
|
Less: Imputed interest
|
(89,369
|
)
|
||
|
Less: Current portion (included in )
|
(9,064
|
)
|
||
|
Total long-term lease liabilities
|
$
|
161,805
|
||
Rent expense was $23.2 million,
$23.1 million and $8.3 million for the
years ended December 31, 2024, 2023
and 2022, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 19, 2025 | Showing above |
| 2023 | Feb 21, 2024 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.