Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

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 2019 and 2027 unless renewed. During the year ended December 31, 2017, the Company entered into an agreement to sublease a portion of the space it leases. As of December 31, 2018, the Company will receive $1.1 million in future payments under this sublease. The Company also leases office and laboratory space in Brisbane, California under a lease that expires in November 2023.

The Rockville leases include a lease executed in July 2015 for space that the Company uses as its headquarters with 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. During 2017, the Company executed a lease amendment for its headquarters building which extends the term of the lease to August 2027, restructures the rent due under the lease, and provides for an additional tenant improvement allowance from the landlord of $7.5 million. The assignment fee and tenant improvement allowances have been recorded as deferred rent and are being recognized over the new lease term.

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, 2018 and 2017, the Company had recorded a deferred rent liability of $11.3 million and $12.3 million, respectively. Rent expense for the years ended December 31, 2018, 2017 and 2016 was $4.4 million, $3.1 million and $3.0 million, respectively.

Future minimum lease payments under noncancelable operating leases as of December 31, 2018 are as follows (in thousands):


2019	$	6,323
2020	4,757
2021	4,724
2022	4,865
2023	4,680
Thereafter	13,786
	$	39,135

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.