COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

8. COMMITMENTS AND CONTINGENCIES

Operating Lease and Lease Guarantee

In 2014, our facility leases in South San Francisco, California were assigned to Theravance Biopharma, Inc. However, if Theravance Biopharma, Inc. were to default on its lease obligations, we have in substance guaranteed the lease payments for these facilities. We would also be responsible for lease-related payments including utilities, property taxes, and common area maintenance, which may be as much as the actual lease payments. As of December 31, 2018, the total remaining lease payments, which run through May 2020, were $9.3 million. The carrying value of this lease guarantee was $0.5 million as of December 31, 2018 and is reflected in other long-term liabilities in our consolidated balance sheet. Amortization on the lease guarantee commenced in 2016 and amortization amount were for the years ended December 31, 2018, 2017 and 2016 were $0.3 million, $0.3 million and $0.2 million, respectively.

Minimum lease payments on our corporate headquarters as of December 31, 2018 are as follows:


(In thousands)
Years ending December 31:
2019	$	403
2020		416
2021		428
2022		441
2023		201
Thereafter		—
Total	$	1,889

Guarantees and Indemnifications

We indemnify our officers and directors for certain events or occurrences, subject to certain limits. We believe the fair value of these indemnification agreements is minimal. Accordingly, we have not recognized any liabilities relating to these agreements as of December 31, 2018.