Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Note 5. Commitments and Contingencies

Lease Obligations

The Company has entered into non-cancellable operating leases for laboratory and office facilities. Rental expense under operating lease agreements was $1.3 million and $2.5 million for the three and six months ended June 30, 2016, respectively, and $949,000 and $1.9 million for the three and six months ended June 30, 2015, respectively.

Future non‑cancelable commitments under these operating leases at June 30, 2016 were as follows:


	Annual
	Payments
	(In thousands)
Years Ending December 31,
2016 (remainder of year)	$	2,546
2017		5,221
2018		5,960
2019		6,748
2020		7,077
2021 and thereafter		9,940
Total minimum payments	$	37,492

Contingencies

From time to time, the Company may be subject to various legal proceedings and claims arising in the ordinary course of business. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in its consolidated financial statements. An estimated loss contingency is accrued in the consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.