Lease Obligations

9 Months Ended

Sep. 30, 2015

The Company leases office and laboratory facilities in California, Kansas and New Jersey. These leases expire between 2016 and 2019, some of which are subject to annual rent increases which range from 3.0% to 3.5%. The Company currently subleases office and laboratory space in California and New Jersey. The following table provides a summary of operating lease obligations and payments expected to be received from sublease agreements as of September 30, 2015 (in thousands):



Operating lease obligations:	Lease Termination Date	Less than 1 year		1 year		2 years		3 years		4 years		Total
Corporate headquarters- San Diego, CA	June 2019	$	695	$	713	$	732	$	560	$	—	$	2,700
Bioscience and Technology Business Center- Lawrence, KS	December 2017	54		54		14		—		—		122
Vacated office and research facility- Cranbury, NJ	August 2016	2,397		—		—		—		—		2,397
Total operating lease obligations		$	3,146	$	767	$	746	$	560	$	—	$	5,219

Sublease payments expected to be received:
Corporate headquarters- San Diego, CA	June 2019	$	438	$	449	$	460	$	351	$	—	$	1,698
Office and research facility- Cranbury, NJ	August 2016	194		—		—		—		—		194
Net operating lease obligations		$	2,514	$	318	$	286	$	209	$	—	$	3,327

As of September 30, 2015 and December 31, 2014, the Company had lease exit obligations of $1.3 million and $3.3 million, respectively. For the three and nine months ended September 30, 2015, the Company made cash payments, net of sublease payments received of $0.8 million and $2.7 million, respectively. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.3 million and $0.8 million for the three and nine months ended September 30, 2015, respectively. For the three and nine months ended September 30, 2014, the Company made cash payments, net of sublease payments received of $0.8 million and $2.6 million, respectively. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.2 million and $0.4 million for the three and nine months ended September 30, 2014, respectively.