Commitments and Contingencies

Lease Commitment Summary

The following table presents future minimum commitments of the Company due under non-cancelable operating leases with original or remaining terms in excess of one year as of December 31, 2017. The Company’s operating lease obligations are related to its principal executive office and research facility in Durham, North Carolina, and its offices in Irvine, California, Bedminster, New Jersey, and Dublin, Ireland.

Minimum lease payments under operating leases were as follows at December 31, 2017:



(in thousands)
2018	$	2,739
2019	3,046
2020	2,788
2021	2,360
2022	538
2023 and thereafter	577
Total minimum lease payments	$	12,048

Rent expense amounted to $2.0 million, $1.4 million and $1.5 million for the years ended December 31, 2017, 2016 and 2015, respectively, and is reflected in selling, general and administrative expenses and research and development expenses as determined by the underlying activities occurring at each of the Company’s locations.

The Company acquired certain leased equipment in connection with the Envisia asset acquisition (see Note 1), which qualified for treatment as a capital lease. The minimum lease payments related to this lease are $0.5 million in 2018 and $0.2 million in 2019.

Minimum expected lease payments related to the Company’s manufacturing plant in Athlone, Ireland, are not reflected in the table above (see Note 5).

Litigation

The Company may periodically become subject to legal proceedings and claims arising in connection with its business. Except as previously disclosed for matters which have now concluded, the Company is not a party to any known litigation, is not aware of any unasserted claims and does not have contingency reserves established for any litigation liabilities.

Milestone Payments

In association with the Envisia asset acquisition (see Note 1), contingent milestone payments of up to $45.0 million may be due, subject to achievement of certain product regulatory approvals using the IPR&D assets acquired, if achieved within the 15-year milestone period. These contingent milestone payments are recognized only when the contingency is resolved (the milestone is achieved) and the consideration is paid or becomes payable.