LEASES AND RELATED PARTY LEASES

12 Months Ended

Dec. 31, 2016

The Company leases administrative, manufacturing, research and distribution facilities and various manufacturing, office and transportation equipment through operating lease agreements. Future minimum lease payments under operating leases at December 31, 2016 were as follows:



	Related Parties		Third Parties		Total
	(In thousands)
2017	$	276	$	9,574	$	9,850
2018	296		7,796		8,092
2019	296		6,693		6,989
2020	296		4,273		4,569
2021	296		3,414		3,710
Thereafter	3,201		23,515		26,716
Total minimum lease payments	$	4,661	$	55,265	$	59,926

Total rental expense for the years ended December 31, 2016, 2015 and 2014 and was $10.3 million, $10.1 million and $10.2 million, respectively, and included $0.3 million, in related party rental expense in each of the three years.

There were no future minimum lease payments under capital leases at December 31, 2016.

Related Party Leases

Until December 27, 2016, the Company leased certain production equipment from a corporation whose sole stockholder is a general partnership, of which the Company’s former Chairman (and current director) is a partner and the President. Under the terms of the lease agreement, the Company pays $0.1 million per year to the related party lessor. Effective December 27, 2016, the Company purchased the production equipment for $0.4 million.

The Company also leases its manufacturing facility in Plainsboro, New Jersey, from a general partnership that is 50% owned by a corporation whose shareholders are trusts, whose beneficiaries include family members of the Company’s former Chairman (and current director). The term of the current lease agreement is through October 31, 2032 at an annual rate of approximately $0.3 million per year. The current lease agreement also provides (i) a 5-year renewal option for the Company to extend the lease from November 1, 2032 through October 31, 2037 at the fair market rental rate of the premises, and (ii) another 5-year renewal option to extend the lease from November 1, 2037 through October 31, 2042 at the fair market rental rate of the premises.