Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Operating Leases

The Company leases manufacturing, office and laboratory space in Rockville, Maryland under five leases that have terms that expire between 2018 and 2022 unless renewed. This includes a seven-year lease executed in July 2015 for additional space that the Company intends to use as mixed-use office, laboratory and manufacturing space. Under the terms of the lease, which commenced on January 1, 2016, the Company received an assignment fee from the former tenant and a tenant improvement allowance from the landlord totaling $5.1 million, which has been recorded as deferred rent and will be recognized over the lease term. The Company also leases office and laboratory space in South San Francisco under a lease that expires on February 28, 2018. During the year ended December 31, 2016, the Company entered into a sublease agreement for a portion of the South San Francisco space (see Note 8). Future payments to be received by the Company under this sublease total approximately $0.9 million.

All of the leases contain rent escalation clauses and certain leases contain rent abatements. For financial reporting purposes, rent expense is charged to operations on a straight-line basis over the term of the lease. As of December 31, 2016 and 2015, the Company had recorded a deferred rent liability of $6.2 million and $7.3 million, respectively. Rent expense for the years ended December 31, 2016, 2015 and 2014 was $3.0 million, $0.9 million and $2.0 million, respectively.

Future minimum lease payments under noncancelable operating leases as of December 31, 2016 are as follows (in thousands):



2017	$	6,314
2018	4,210
2019	3,803
2020	2,142
2021	2,574
Thereafter	2,636
	$	21,679

Contingencies

From time to time, the Company may be subject to various litigation and related matters arising in the ordinary course of business. The Company does not believe it is currently subject to any material matters where there is at least a reasonable possibility that a material loss may be incurred.