Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Note 7. Commitments and Contingencies

Lease Obligations

The Company leases approximately 180,700 square feet of office and laboratory space under five non-cancelable operating leases, with terms that expire between 2021 and 2023 in Redwood City, California, and 7,500 square feet of office space for the Company’s European subsidiary under a non-cancelable operating lease that expires in 2021 in Geneva, Switzerland. The Company’s Redwood City, California leases each contain options to extend the terms of such leases for an additional five years as well as tenant improvement allowances that could total as much as $2.3 million to the extent utilized by November 2018.

Rent expense under operating leases amounted to $5.7 million, $4.1 million and $3.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Future non‑cancelable commitments under these operating leases at December 31, 2016 were as follows:


	Annual
	Payments
	(In thousands)
Years Ending December 31,
2017	$	5,206
2018		5,946
2019		6,734
2020		7,063
2021		4,817
2022 and thereafter		5,117
Total minimum payments	$	34,883

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. Any such accruals were not material at either December 31, 2016 or 2015.