Lease Obligations

6 Months Ended

Jun. 30, 2015

The Company leases office and laboratory facilities in California, Kansas and New Jersey. These leases expire between 2015 and 2019, some of which are subject to annual rent 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 June 30, 2015 (in thousands):



Operating lease obligations:	Lease Termination Date	Less than 1 year		1 year		2 years		3 years		4 years		Total
Corporate headquarters- San Diego, CA	June 2019	$	691	$	709	$	727	$	747	$	—	$	2,874
Bioscience and Technology Business Center- Lawrence, KS	December 2017	54		54		27		—		—		135
Vacated office and research facility-San Diego, CA	August 2015	191		—		—		—		—		191
Vacated office and research facility- Cranbury, NJ	August 2016	2,614		436		—		—		—		3,050
Total operating lease obligations		$	3,550	$	1,199	$	754	$	747	$	—	$	6,250

Sublease payments expected to be received:
Corporate headquarters- San Diego, CA	June 2019	$	436	$	446	$	457	$	469	$	—	$	1,808
Vacated office and research facility- San Diego, CA	August 2015	78		—		—		—		—		78
Office and research facility- Cranbury, NJ	August 2016	212		35		—		—		—		247
Net operating lease obligations		$	2,824	$	718	$	297	$	278	$	—	$	4,117

As of June 30, 2015 and December 31, 2014, the Company had lease exit obligations of $1.9 million and $3.3 million, respectively. For the three and six months ended June 30, 2015, the Company made cash payments, net of sublease payments received of $0.9 million and $1.9 million, respectively. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.2 million and $0.4 million for the three and six months ended June 30, 2015, respectively. For the three and six months ended June 30, 2014, the Company made cash payments, net of sublease payments received of $0.9 million and $1.8 million, respectively. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.1 million and $0.2 million for the three and six months ended June 30, 2014, respectively.

Total rent expense under all office leases for each of the three and six months ended June 30, 2015 was $0.1 million and $0.2 million, respectively. Total rent expense for the three and six months ended June 30, 2014 was $0.2 million and $0.4 million, respectively. The Company recognizes rent expense on a straight-line basis. Deferred rent at both June 30, 2015 and December 31, 2014 was $0.3 million, and is included in other long-term liabilities.