Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

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 $1.6 million for the three months ended March 31, 2017 and $1.3 million for the three months ended March 31, 2016.

Future non‑cancelable commitments under these operating leases at March 31, 2017 were as follows:


	Annual
	Payments
	(In thousands)
Years Ending December 31,
2017 (remainder of year)	$	3,924
2018		5,953
2019		6,741
2020		7,070
2021		4,820
2022 and thereafter		5,117
Total minimum payments	$	33,625

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.