LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2017

LEASE COMMITMENTS

LEASE COMMITMENTS

15. LEASE COMMITMENTS

In July 2015, the Company amended its office lease to, among other things, extend the lease term for an additional five year period commencing on October 1, 2020 at a rate of $182 per month. During the years ended December 31, 2017, 2016 and 2015, the Company recorded expense associated with this lease of $1.9 million, $1.9 million and $2.0 million, respectively. After the lease amendment, future minimum rental payments on this lease for the next five years are as follows: 2018— $1.5 million, 2019— $1.5 million, 2020— $1.7 million, 2021—$2.2 million, 2022—$2.2 million and thereafter—$6.0 million.

On June 30, 2015, the Company increased its letter of credit and related cash collateral in anticipation of the extension of its office lease. As of December 31, 2017 and December 31, 2016, the Company had an outstanding letter of credit of $1.4 million in both periods, as required under the terms of its office lease. This letter of credit is secured by cash placed in a restricted account amounting to $1.5 million as of December 31, 2017 and December 31, 2016.