[36] Contingent liabilities and other financial commitments

Contingent liabilities

The contingent liabilities include guarantees to external parties. In addition, guarantees of €1.6 million related to contingent liabilities assumed jointly with another shareholder of a joint venture (31 December 2016: €1.9 million). > TABLE 096

Contingent liabilities

096

in € million

2017

2016

Liabilities on bills of exchange

4.3

Liabilities on guarantees

48.2

86.2

Total contingent liabilities

48.2

90.5

Litigation

The legal risks arising from the KION Group’s business are typical of those faced by any company operating in this sector. The Group companies are a party in a number of pending lawsuits in various countries. The individual companies cannot assume with any degree of certainty that they will win any of the lawsuits or that the existing risk provision in the form of insurance or provisions will be sufficient in each individual case. However, the KION Group believes it is unlikely that these ongoing lawsuits will require funds to be utilised that exceed the provisions recognised.

Other financial commitments

Sundry other financial commitments included future payment obligations to an associate amounting to €1.3 million (31 December 2016: €1.3 million). > TABLE 097

Other financial commitments

097

in € million

2017

2016

Commitments under non-cancellable operating leases

442.0

362.7

Commitments under licence and support agreements

56.1

58.5

Capital expenditure commitments in property, plant and equipment

51.6

30.0

Other financial commitments

14.2

15.4

Total other financial commitments

563.9

466.6

The maturity structure of the total future minimum lease payments under non-cancellable operating leases is shown in > TABLE 098.

Future minimum lease payments

098

in € million

2017

2016

Nominal future minimum lease payments (gross)

442.0

362.7

due within one year

96.1

85.5

due in one to five years

192.8

169.4

due in more than five years

153.0

107.8

The future minimum lease payments relate to payments for leased buildings, machinery, office furniture and equipment (procurement leases) as well as payments for industrial trucks refinanced with a sale and leaseback and sub-leased to end customers (sale and leaseback sub-leases). > TABLE 099

Future minimum lease payments broken down into procurement leases & sale and leaseback sub-leases

099

 

Procurement leases

Sale and leaseback sub-leases

in € million

2017

2016

2017

2016

Future minimum lease payments (cash out)

412.5

319.1

29.4

43.6

due within one year

80.4

67.0

15.7

18.5

due in one to five years

179.2

144.7

13.6

24.8

due in more than five years

153.0

107.4

0.0

0.4

 

 

 

 

 

Future minimum lease payments (cash in)

2.4

6.3

due within one year

1.7

2.2

due in one to five years

0.7

4.1

due in more than five years

0.0

The future minimum lease payments for sale and leaseback transactions not recognised in the statement of financial position amounting to €29.4 million (31 December 2016: €43.6 million) are partially offset by receipts under non-cancellable sub-leases amounting to €2.4 million (31 December 2016: €6.3 million). The future payments also include obligations arising from the refinancing of industrial trucks for which there were no offsetting receipts under short-term sub-leases as at the reporting date.