Commitments and Contingencies	12 Months Ended
Dec. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	13. Commitments and Contingencies Performance-Contingent Awards In 2016, the Compensation Committee granted long-term retention RSAs and RSUs to members of senior management and incentive cash bonus awards to certain employees. The vesting and payout of such awards is dependent on the Company meeting its critical operating goals and objectives during a five-year period from 2016 to December 31, 2020. These goals are strategically important for the Company, and it believes the goals, if achieved, will increase shareholder value. The awards have dual triggers of vesting based upon the achievement of these goals and continued employment. Expense associated with these awards may be recognized during the years 2016 to 2020 depending on the probability of meeting certain performance conditions. Compensation expense relating to awards subject to performance conditions is recognized if it is considered probable that the performance goals will be achieved. The probability of achievement is reassessed at each quarter-end reporting period. Previously recognized expense is reversed in the period in which it becomes probable that the requisite service period will not be rendered. The awards are broken into three separate tranches and comprised of a share-based award component and a cash bonus award component. See “Note 11. Share-Based Compensation” for information related to the share-based award component. The performance conditions associated with the first tranche of the cash bonus awards were completed in the second quarter of 2018, and the Company recognized $3.5 million and $9.5 million of cash bonus expense for the year ended December 31, 2018 and 2017, respectively, associated with the first tranche of these awards. The performance conditions associated with the second tranche of these awards were completed in the first quarter of 2019. For year ended December 31, 2019, 2018 and 2017, the Company recognized $2.4 million, $1.9 million and $8.7 million, respectively, of cash bonus expense related to the second tranche of these awards. As of December 31, 2019, the maximum remaining cash bonus expense associated with the second tranche was $0.5 million (allocated as $0.4 million for research and development expense and $0.1 million for selling, general and administrative expense) and will be amortized through the first quarter of 2020. In the fourth quarter of 2019, the Company determined that the remaining third tranche was probable of vesting, and, as a result, recognized $11.8 million in cash bonus expense for the year ended December 31, 2019. As of December 31, 2019, the maximum remaining cash bonus expense associated with the third tranche was $3.5 million (allocated as $2.7 million for research and development expense and $0.8 million for selling, general and administrative expense) and will be amortized through the first quarter of 2021. Guarantees and Indemnifications The Company indemnifies its officers and directors for certain events or occurrences, subject to certain limits. The Company believes the fair value of these indemnification agreements is minimal. Accordingly, the Company has not recognized any liabilities relating to these agreements as of December 31, 2019.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

13. Commitments and Contingencies

Performance-Contingent Awards

In 2016, the Compensation Committee granted long-term retention RSAs and RSUs to members of senior management and incentive cash bonus awards to certain employees. The vesting and payout of such awards is dependent on the Company meeting its critical operating goals and objectives during a five-year period from 2016 to December 31, 2020. These goals are strategically important for the Company, and it believes the goals, if achieved, will increase shareholder value. The awards have dual triggers of vesting based upon the achievement of these goals and continued employment.

Expense associated with these awards may be recognized during the years 2016 to 2020 depending on the probability of meeting certain performance conditions. Compensation expense relating to awards subject to performance conditions is recognized if it is considered probable that the performance goals will be achieved. The probability of achievement is reassessed at each quarter-end reporting period. Previously recognized expense is reversed in the period in which it becomes probable that the requisite service period will not be rendered. The awards are broken into three separate tranches and comprised of a share-based award component and a cash bonus award component. See “Note 11. Share-Based Compensation” for information related to the share-based award component.

The performance conditions associated with the first tranche of the cash bonus awards were completed in the second quarter of 2018, and the Company recognized $3.5 million and $9.5 million of cash bonus expense for the year ended December 31, 2018 and 2017, respectively, associated with the first tranche of these awards.

The performance conditions associated with the second tranche of these awards were completed in the first quarter of 2019. For year ended December 31, 2019, 2018 and 2017, the Company recognized $2.4 million, $1.9 million and $8.7 million, respectively, of cash bonus expense related to the second tranche of these awards. As of December 31, 2019, the maximum remaining cash bonus expense associated with the second tranche was $0.5 million (allocated as $0.4 million for research and development expense and $0.1 million for selling, general and administrative expense) and will be amortized through the first quarter of 2020.

In the fourth quarter of 2019, the Company determined that the remaining third tranche was probable of vesting, and, as a result, recognized $11.8 million in cash bonus expense for the year ended December 31, 2019. As of December 31, 2019, the maximum remaining cash bonus expense associated with the third tranche was $3.5 million (allocated as $2.7 million for research and development expense and $0.8 million for selling, general and administrative expense) and will be amortized through the first quarter of 2021.

Guarantees and Indemnifications

The Company indemnifies its officers and directors for certain events or occurrences, subject to certain limits. The Company believes the fair value of these indemnification agreements is minimal. Accordingly, the Company has not recognized any liabilities relating to these agreements as of December 31, 2019.