Annual report pursuant to Section 13 and 15(d)
Commitments and Contingencies
|12 Months Ended|
Dec. 31, 2016
|Commitments And Contingencies Disclosure [Abstract]|
|Commitments and Contingencies||
Note L – Commitments and Contingencies
The Company leases its laboratory and office facilities under non-cancelable operating leases. These operating leases expire at various dates through December 2020 and generally require the payment of real estate taxes, insurance, maintenance, utility and operating costs. The Company has approximately 49,000 square feet of office and laboratory space at our corporate headquarters in Fort Myers, Florida. In addition, we maintain laboratory and office space in Aliso Viejo, West Sacramento, Fresno and Irvine, California; Nashville, Tennessee; Houston, Texas and Tampa, Florida.
The following is a schedule of future minimum obligations under non-cancelable operating leases as of December 31, 2016 (in thousands):
Rent expense for the years ended December 31, 2016, 2015 and 2014 was approximately $4.2 million, $1.9 million and $1.7 million, respectively and is included in costs of revenues and in general and administrative expenses, depending on the allocation of work space in each facility. Certain of the Company’s facility leases include rent escalation clauses. The Company normalizes rent expense on a straight-line basis over the term of the lease for known changes in lease payments over the life of the lease.
The Company has agreements in place to purchase a specified level of reagents from certain vendors. These purchase commitments expire at various dates through 2020. The purchase commitments as of December 31, 2016 are as follows (in thousands):
Capital Lease Obligations
The Company’s capital lease obligations expire at various times through 2020 and the weighted average interest rates under such leases approximated 6.03% at December 31, 2016. Some of our leases contain bargain purchase options that allow us to purchase the leased property for a minimal amount upon the expiration of the lease term. The remaining leases have purchase options at fair market value. See Note F-Debt for more information about future minimum lease payments under capital lease obligations, including those described above. Property and equipment acquired under capital lease agreements, see Note C-Property and Equipment, Net are pledged as collateral to secure the performance of the future minimum lease payments shown in Note F-Debt.
The agreements with our Chief Executive Officer, Chief Medical Officer, Clinical Services President, Vice President of Operations, Chief Information Officer and Chief Financial Officer contain some or all of the following:
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef