Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Note 7. 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 each of the three months ended March 31, 2018 and 2017.

Future non‑cancelable commitments under these operating leases at March 31, 2018 were as follows:


	Annual
	Payments
	(In thousands)
Years Ending December 31,
2018 (remainder of year)	$	4,638
2019		6,753
2020		7,082
2021		4,825
2022		4,082
2023 and thereafter		1,035
Total minimum payments	$	28,415

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. Legal proceedings, including litigation, government investigations and enforcement actions, could result in material costs, occupy significant management resources and entail civil and criminal penalties, even if the Company ultimately prevails. Any of the foregoing consequences could result in serious harm to the Company’s business, results of operations and financial condition.