Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Note 13. Commitments and Contingencies

As of December 31, 2015, we had a non‑cancelable direct financing lease for our current corporate headquarters facility in Wilmington, Delaware. The term of this lease is 15 years from the date of commencement. The lease commenced in October 2014 with a monthly lease rate of $0.5 million for the first 10 years of the lease with the monthly lease rate increasing annually during the last five years of lease. This lease expires in 2029.

Rent expense for all leases for the years ended December 31, 2015, 2014 and 2013, was approximately $1.3 million, $7.0 million and $6.4 million, respectively.

As of December 31, 2015, future non‑cancelable minimum payments under operating, direct financing and capital leases, were as follows:


Year Ended December 31,	Operating Leases		Direct Financing		Capital Lease
		(in thousands)		(in thousands)		(in thousands)
2016	$	4.5	$	5.4	$	0.1
2017		3.7		5.4		—
2018		3.7		5.4		—
2019		1.2		5.4		—
2020		0.6		5.4		—
Thereafter		2.5		52.3		—
Total minimum lease payments	$	16.2	$	79.3	$	0.1

We have entered into and may in the future seek to license additional rights relating to technologies or drug development candidates in connection with our drug discovery and development programs. Under these licenses, we may be required to pay upfront fees, milestone payments, and royalties on sales of future products, which are not reflected in the table above.

On August 21, 2015, we entered into an Agreement of Sale with Augustine Land II, L.P. (the “Seller”) to purchase the leased land and office building for approximately $79.9 million. The Agreement of Sale contains customary representations and warranties regarding the property and closing of the acquisition is subject to certain standard closing conditions. Closing of the acquisition is expected to occur in the first quarter of 2016. We initially made a $4.0 million deposit with a third party escrow agent and a $4.0 million deposit with the Seller during the third quarter of 2015. The escrow agent held the deposit until the building inspection process was completed, and the escrow agent released the $4.0 million to the Seller in October 2015 as an additional deposit. As of December 31, 2015, the $8.0 million Seller deposit is recorded in other assets, net on the condensed consolidated balance sheets. The table above does not include the additional payments that will be made to the Seller should this purchase close. In addition, should this purchase close, the lease obligations that remain as of December 31, 2015 under the current leasing arrangement totaling $79.3 million, set forth in the table above, would no longer be paid.