COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The Company leases facilities in Ann Arbor, Michigan and Cambridge, Massachusetts. In March 2016, the Company amended its current lease in Cambridge to, among other provisions, extend the terms until February 2022. Under the amendment, the landlord will contribute approximately $2.0 million toward the cost of tenant improvements. The contribution toward the cost of tenant improvements is recorded as deferred rent on the Company's consolidated balance sheet and is amortized to our consolidated statement of operations as reductions to rent expense over the lease term. As of March 31, 2017, the Company has recorded a tenant improvement of $0.9 million.

In addition to the property leases, the Company also leases an offsite warehouse, various vehicles and computer equipment. The Company's purchase commitments consists of minimum purchase amounts of material in manufacturing in addition to fees payable under the DLSS contract which provides a patient support services program for Carticel and MACI.

As of March 31, 2017, future minimum payments related to leases and other contractual obligations are as follows:



(In thousands)	Total		2017		2018		2019		2020		2021		More than 5 Years
Operating leases	$	22,766	$	3,979	$	4,700	$	4,357	$	4,423	$	4,546	$	761
Purchase commitments	7,170		1,668		2,268		1,434		600		600		600
Capital leases	64		32		32		—		—		—		—
Total	$	30,000	$	5,679	$	7,000	$	5,791	$	5,023	$	5,146	$	1,361

Rent expense for the three months ended March 31, 2017 and 2016 was $1.3 million and $1.2 million, respectively.