Company: ARVN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001655759-25-000139
Chunk: 93

Company: ARVINAS, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 93
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 liabilities approximate their fair values due to the short-term nature of these assets and liabilities.

5. Property, Equipment and Leasehold Improvements 

Property, equipment and leasehold improvements consist of the following:(dollars in millions)June 30,2025December 31,2024Laboratory equipment$20.8 $20.6 Leasehold improvements9.0 9.3 Office equipment3.0 2.7 Total property, equipment and leasehold improvements32.8 32.6 Less: accumulated depreciation and amortization(26.7)(25.6)Property, equipment and leasehold improvements, net$6.1 $7.0 

11

During the three months ended June 30, 2025 and 2024, the Company recognized depreciation and amortization expense of $0.8 million and $1.2 million, respectively. During the six months ended June 30, 2025 and 2024, the Company recognized depreciation and amortization expense of $1.5 million and $2.4 million, respectively.

6. Right-of-Use Assets and Liabilities

Operating lease liabilities and their corresponding right-of-use ("ROU") assets are recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate, which reflects the fixed rate at which it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. The Company's weighted average incremental borrowing rate at June 30, 2025 totaled 6.9%. Lease expense is recognized on a straight-line basis over the lease term.The Company has operating leases for its corporate office, laboratories and certain equipment, which expire no later than December 2029. The leases have a weighted average remaining term of approximately 4.4 years.The components of lease expense were as follows: Three Months EndedJune 30,Six Months EndedJune 30,(dollars in millions)2025202420252024Operating lease cost$0.7 $0.5 $1.5 $1.0 Supplemental cash flow information related to leases was as follows:Six Months EndedJune 30,(dollars in millions)20252024Cash paid for amounts included in the measurement of lease liabilities:  Operating cash flows from operating leases