LEASES:

The Authority leases certain areas at Mohegan Sun and Mohegan Sun Pocono to third-party food and beverage and retail outlets, as well as the rights to access and utilize Mohegan Sun’s rooftop for the installation and operation of antenna towers. Minimum future rental income that the Authority expects to earn under non-cancelable leases is as follows (in thousands):



	Fiscal Years Ending September 30,
	2017		2018		2019		2020		2021		Thereafter		Total
Minimum future rental income	$	5,537	$	4,867	$	4,534	$	4,387	$	4,288	$	7,567	$	31,180

The Authority is required to make payments under various operating leases for buildings, equipment and land at Mohegan Sun and Mohegan Sun Pocono. The Authority incurred rental expense totaling $8.8 million, $9.2 million and $11.4 million for the fiscal years ended September 30, 2016, 2015 and 2014, respectively.

In March 2015, the Authority entered into a sublease agreement with MTFA to sublease the completed 400-room Earth Hotel Tower and related improvements, including an approximately 1.2-acre site upon which the hotel is located, for the purpose of operating the hotel on a triple net basis for a term of 28 years and 4 months (refer to Note 8). Rental payments under the sublease agreement commenced with the opening of the Earth Hotel Tower, which occurred in November 2016. The Authority classified the sublease as an operating lease for financial reporting purposes in accordance with authoritative guidance issued by the FASB pertaining to the accounting for leases.

Minimum future rental payment that the Authority expects to incur under non-cancelable leases is as follows (in thousands):



	Fiscal Years Ending September 30,
	2017		2018		2019		2020		2021		Thereafter		Total
Minimum future rental payment	$	7,999	$	8,340	$	8,128	$	8,183	$	7,334	$	210,295	$	250,279