Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Operating Leases

The Company is obligated to make future minimum payments under three operating leases for 106,740 square feet of space used for general office, laboratory, manufacturing, operations, and research and development purposes primarily in Seattle. The leases expire beginning in 2018 to 2026 and include options to renew at the then current fair market rental for each of the facilities. The lease agreements contain rent abatement periods, scheduled rent increases and provide for tenant improvement allowances. Accordingly, the Company has recorded a deferred rent liability of $8.7 million and $7.5 million as of December 31, 2017 and 2016, respectively. This deferred rent liability is amortized over the term of the related lease.

Rent expense totaled approximately $4.8 million, $3.8 million and $3.2 million for the years ended December 31, 2017, 2016, and 2015, respectively.

Future minimum lease payments under noncancelable operating leases as of December 31, 2017 were as follows (in thousands):



2018	$	5,316
2019	5,307
2020	5,418
2021	5,551
2022	5,708
Thereafter	19,327
	$	46,627

Purchase Commitments

The Company has non-cancellable purchase obligations totaling $4.4 million at December 31, 2017 related to binding commitments to purchase inventory and other research and development items.

Contingencies

From time to time, the Company may become involved in litigation relating to claims arising from the ordinary course of business. Management believes that there are no claims or actions pending against the Company currently, the ultimate disposition of which would have a material adverse effect on the Company’s consolidated results of operation, financial condition or cash flows.