Lease Obligations

12 Months Ended

Dec. 31, 2013

Leases [Abstract]

Lease Obligations

Lease Obligations

The Company leases office and laboratory facilities in California, Kansas and New Jersey. These leases expire between 2014 and 2019 and are subject to annual increases which range from 3.0% to 3.5%. The Company currently subleases office and laboratory space in California and New Jersey. The following table provides a summary of operating lease obligations and payments expected to be received from sublease agreements as of December 31, 2013 (in thousands):

Operating lease obligations:	Lease Termination Date	Less than 1 year		2-3 years		4-5 years		More than 5 years		Total
Corporate headquarters-San Diego, CA	July 2019	$	664	$	1,381	$	1,455	$	374	$	3,874
Bioscience and Technology Business Center-Lawrence, KS	December 2014	57		—		—		—		57
Vacated office and research facility-San Diego, CA	July 2015	2,240		1,332		—		—		3,572
Vacated office and research facility-Cranbury, NJ	August 2016	2,563		4,332		—		—		6,895
Total operating lease obligations		$	5,524	$	7,045	$	1,455	$	374	$	14,398
Sublease payments expected to be received:		Less than 1 year		2-3 years		4-5 years		More than 5 years		Total
Office and research facility-San Diego, CA	July 2015	$	906	$	545	$	—	$	—	$	1,451
Office and research facility-Cranbury, NJ	August 2014 and 2016	368		575		—		—		943
Net operating lease obligations		$	4,250	$	5,925	$	1,455	$	374	$	12,004

For the years ended December 31, 2013 and 2012, the Company had lease exit obligations of $5.9 million and $9.0 million, respectively. For the years ended December 31, 2013 and 2012, the Company made cash payments, net of sublease payments received of $3.7 million and $3.6 million, respectively. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.6 million and $1.0 million for the years ended December 31, 2013 and 2012, respectively.

As part of the lease for the corporate headquarters, the Company received a tenant improvement allowance of $3.2 million. The tenant improvements were used to build out the suite for general lab and office purposes. For the year ended December 31, 2012, the Company recorded a sale leaseback transaction whereby it removed all property from its balance sheet. There was no gain on the sale-leaseback.

Total rent expense under all office leases for 2013, 2012 and 2011 was $0.7 million, $1.1 million, and $1.2 million, respectively. The Company recognizes rent expense on a straight-line basis. Deferred rent at December 31, 2013 and 2012 was $0.4 million and $0.3 million, respectively, and is included in other long-term liabilities.