16.

Commitments and contingencies

Operating leases

December 31, 2018,

the Company leases facilities under

seven

non-cancelable operating leases, with terms that expire between

2019

and

2033.

The Company leases office, storage/warehouse, laboratory and manufacturing space in Abingdon, U.K., which leases are due to expire at various dates from

June 11, 2019

June 18, 2033.

March

2013,

the Company signed a

five

year lease for its U.S. corporate headquarters in Marlborough, Massachusetts. In

August 2015,

the Company entered into a lease amendment for this location to extend the term of the lease by

two

years through

October 31, 2020.

In addition, the lease amendment expanded the Company’s office space at this location by

7,600

square feet to a new total of

22,100

square feet. The base rent for the combined space over the lease term will range from an initial low of

$36,000

per month, which includes

$12,000

per month for the expansion space commencing in early

2016,

to a high of

$39,000

per month. The Company will have an option to extend the lease for

one

additional term of

five

years.

In connection with the sale of our U.S. Laboratory Services Business to Quest, we entered into a sublease with Quest for approximately

9,000

square feet of warehousing and office space in Norwood, Massachusetts. The sublease expires in

November 2020.

The base rent for the space subject to sublease is approximately

$17,000

per month.

June 2018,

the Company entered into a lease for new space in Abingdon, England, which extends through

June 2033

that will allow it to combine its manufacturing, laboratory, storage and office operations into a single facility. The base rent on the facility over the lease term will range from

$39,000

per month to

$79,000

per month. Select functional groups began moving into the facility during the

third

quarter of

2018.

Future minimum lease payments required under the non-cancelable operating leases in effect as of

December 31, 2018

are as follows:

(in thousands)	December 31, 2018
2019	$	2,024
2020		1,848
2021		972
2022		855
2023		855
Thereafter		7,558
Total minimum lease payments	$	14,112

Rent expense is calculated on a straight-line basis over the term of the lease. Rent expense recognized under operating leases totaled

$2.3

million,

$1.6

million and

$1.1

million for the years ended

December

31,

2018,

2017

and

2016,

respectively.

Purchase commitments

The Company has license agreements with

third

parties that provide for minimum royalty, license, and exclusivity payments to be paid by the Company for access to certain technologies. In addition, the Company pays royalties as a percent of revenue as described in Note

14.

Intellectual property—license agreements

, to these consolidated financial statements. In addition, the Company has outstanding purchase obligations to its suppliers.

Future minimum payments required under license agreements and supplier purchase obligations in effect as of

December

31,

2018

are as follows:

(in thousands)	License agreements		Supplier purchase obligations		Total
2019	$	262	$	8,723	$	8,985
2020		134		—		134
2021		59		—		59
2022		59		—		59
2023		59		—		59
Thereafter		695		—		695
Total minimum payments	$	1,268	$	8,723	$	9,991

Legal contingencies

The Company is subject to claims and assessments from time to time in the ordinary course of business. The Company does

not

believe that any such matters, individually or in the aggregate, will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

Indemnification

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that

may

be made against the Company in the future, but that have

not

yet been made. To date, the Company has

not

paid any claims or been required to defend any action related to its indemnification obligations. However, the Company

may

record charges in the future as a result of these indemnification obligations.

In accordance with its articles of association, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving at the Company’s request in such capacity. There have been

claims to date, and the Company has director and officer insurance that

may

enable it to recover a portion of any amounts paid for future potential claims.