Commitments and Contingencies (Notes)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Accrued Loss on Lease Obligations

The Company’s headquarters are located in Emeryville, California, where it leases office space for its general and administrative and research and product development operations under a noncancelable operating lease that expires in November 2022. Prior to 2017, the Company’s former headquarters were located in San Diego, California, where it leased office space under a noncancelable operating lease that runs through March 2020. In September 2017, the Company completely vacated its former headquarters in anticipation of subleasing the available space. In October 2017, the Company entered into a sublease agreement with an unrelated third party pursuant to which it will rent the vacated space through the remainder of the Company’s original lease term. As of September 30, 2017, the Company recognized the fair value of the cease-use liability in the amount of $1.1 million. The cease-use liability was calculated based on the present value of the remaining net cash flows related to the Company’s continuing obligations under the lease less the present value of sublease rental payments to be received under the sublease agreement over the term of the sublease. The net cash flows were discounted using the Company’s estimated incremental borrowing rate, a Level 2 input within the fair value hierarchy (see Note 4). Additionally, the Company derecognized the related deferred rent liability in the amount of $0.5 million. These adjustments resulted in a loss on lease of $0.6 million, which has been included in general and administrative expenses in the condensed consolidated statements of operations and comprehensive loss.