26. Off-balance sheet arrangements
Contractual obligations and commitments
We entered into lease agreements for our offices and laboratories which qualify as operating leases. We also have certain purchase commitments with CRO subcontractors and with collaboration partners principally.
On 31 December 2017, we had outstanding obligations for future minimum rent payments and purchase commitments, which become due as follows:
(thousands of €) |
Total |
Less than 1 year |
1–3 years |
3–5 years |
More than 5 years |
Operating lease obligations |
26,346 |
4,150 |
7,820 |
6,010 |
8,366 |
Purchase commitments |
65,246 |
53,010 |
11,233 |
1,002 |
– |
Total contractual obligations & commitments |
91,592 |
57,160 |
19,053 |
7,012 |
8,366 |
On 31 December 2016, we had outstanding obligations for future minimum rent payments and purchase commitments, which become due as follows:
(thousands of €) |
Total |
Less than 1 year |
1–3 years |
3–5 years |
More than 5 years |
Operating lease obligations |
27,263 |
4,114 |
6,494 |
5,504 |
11,151 |
Purchase commitments |
27,579 |
27,084 |
495 |
– |
– |
Total contractual obligations & commitments |
54,842 |
31,198 |
6,989 |
5,504 |
11,151 |
In addition to the tables above, we have a contractual cost sharing obligation related to our collaboration agreement with Gilead for filgotinib. This is disclosed in the Corporate Governance chapter of this report, under “Agreements with major Galapagos NV shareholders”. The contractual cost sharing commitment amounted to €129.0 million at 31 December 2017 (€199.0 million at 31 December 2016), for which we have direct purchase commitments of €10.1 million at 31 December 2017 (€2.0 million at 31 December 2016) reflected in the tables above.