GUARANTEE COMMITMENTS
Some long-term concession agreements, which Hudson has entered into, include obligations to fulfil minimal lease payments during the full term of the agreement. The lease payments to airports or terminals are also called concession fees. Some of these agreements have been backed with guarantees provided by Hudson or a financial institution. During the years 2017, 2016 or 2015, no party has exercised their right to call upon such guarantees.
LEASE INCOME / (EXPENSE)
Lease payments under operating leases have been recognized as an expense for the periods up to December 31, 2017. All accrued, but still unpaid concession fees are presented as liabilities in the statement of financial position.
The Group recognized the following lease and sublease as an income / (expense) in the period:
IN MILLIONS OF USD |
2017 | 2016 | 2015 | |||||||||
| Minimum lease payments | (262.4 | ) | (206.6 | ) | (170.0 | ) | ||||||
| Variable rent | (136.7 | ) | (168.7 | ) | (137.0 | ) | ||||||
| Concession fees expense (note 8) | (399.1 | ) | (375.3 | ) | (307.0 | ) | ||||||
| Sublease income (note 8) | 11.6 | 11.9 | 7.3 | |||||||||
Such fees are usually determined in proportion to sales and require a minimal payment, which varies by contract/agreement.
Expected income / (expense)
The total of future minimum lease payments under non-cancellable operating leases for each of the following years are as follows:
IN MILLIONS OF USD |
FUTURE EXPENSES | |||
| Not later than one year | 276.7 | |||
| Later than one year and not later than five years | 894.3 | |||
| Later than five years | 536.2 | |||
| Total | 1,707.2 | |||
The total of future minimum sublease payments expected to be received under non-cancellable subleases at the end of the reporting period are USD 35.5 million.