Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies [Abstract]

Operating Lease Obligations: A Lexicon subsidiary leases office space in Basking Ridge, New Jersey under a lease agreement, the term of which began in June 2015 and terminates in December 2022. Rent expense is recognized on a straight-line basis over the lease term. Lexicon is the guarantor of the obligations of its subsidiary under this lease agreement. Under a lease that expired in June 2015, the Company was required to maintain restricted investments to collateralize a standby letter of credit for this lease. The Company had $0.0 million and $0.4 million in restricted investments as collateral as of December 31, 2015 and 2014, respectively. Additionally, Lexicon leases certain equipment under operating leases.

Rent expense for all operating leases was approximately $0.1 million, $1.0 million and $0.9 million for the years ended December 31, 2015, 2014 and 2013, respectively. The following table includes non-cancelable, escalating future lease payments for the facility in New Jersey:



	For the Year Ending December 31
	(in thousands)
2016	$	512
2017	582
2018	595
2019	607
2020	620
Thereafter	1,277
Total	$	4,193

Employment Arrangements: Lexicon has entered into employment arrangements with certain of its corporate officers. Under the arrangements, each officer receives a base salary, subject to adjustment, with an annual discretionary bonus based upon specific objectives to be determined by the compensation committee. The employment arrangements are at-will and some contain non-competition agreements. Some of the arrangements also provide for certain severance payments for either six or 12 months and, in some cases, payment of a specified portion of the officer’s bonus target for such year, in the event of a specified termination of the officer’s employment.

Legal Proceedings: Lexicon is from time to time party to claims and legal proceedings that arise in the normal course of its business and that it believes will not have, individually or in the aggregate, a material adverse effect on its results of operations, financial condition or liquidity.