MACROGENICS INCMGNX

MACROGENICS INC Leases Disclosure

10-KFiled Feb 24, 20221 min read
Leases    
The Company has non-cancelable operating leases for manufacturing, laboratory, office and warehouse space in Maryland and a non-cancelable operating lease for laboratory and office space in California. A portion of the space under one of these leases is subleased to a third party. All of these leases include one or more options to renew, with those renewal periods ranging from five to fourteen years.
The table below presents supplemental balance sheet information related to operating leases:
December 31,
20212020
Weighted-average remaining lease term (in years)5.15.9
Weighted-average discount rate9.7 %9.7 %
During the years ended December 31, 2021 and 2020, the Company made cash payments for operating leases of $6.7 million and $5.9 million, respectively. As of December 31, 2021 and 2020, the Company’s ROU assets were valued at $16.6 million and $19.3 million, respectively, and are included in other non current assets on the consolidated balance sheet.
The components of lease cost for the years ended December 31, 2021 and 2020 were as follows (in thousands):
December 31,
20212020
Operating lease cost
$5,613 $5,410 
Variable lease cost960 1,083 
Sublease income
(814)(770)
Net lease cost$5,759 $5,723 
As of December 31, 2021, the maturities of the Company’s operating lease liabilities were as follows (in thousands):
20226,940 
20236,796 
20245,856 
20255,084 
20264,210 
Thereafter3,554 
Total lease payments32,440 
Less: imputed interest(6,972)
Total lease liabilities$25,468 

Historical Timeline

Fiscal YearFiled
2021Feb 24, 2022Showing above
2020Feb 25, 2021
2019Feb 25, 2020
2017Feb 27, 2018
2016Feb 28, 2017
2015Feb 29, 2016

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.

Other Available Disclosures

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