Commitments and contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Note 10 - Commitments and contingencies

Rents and operating leases

Hudson utilizes leased facilities and operates equipment under non-cancelable operating leases through July 2030. Below is a table of key properties :

Properties

Location	Annual Rent		Lease Expiration Date
Auburn, Washington	$	54,000	8/2019
Baton Rouge, Louisiana	$	24,000	5/2019
Champaign, Illinois	$	610,000	12/2019
Charlotte, North Carolina	$	26,000	5/2019
Escondido, California	$	163,000	6/2022
Hampstead, New Hampshire	$	52,000	8/2022
Nashville, Tennessee	$	164,000	3/2020
Long Beach, California	$	26,400	2/2020
Long Island City, New York	$	756,000	7/2021
Ontario, California	$	92,000	12/2021
Pearl River, New York	$	150,000	12/2021
Pottsboro, Texas	$	9,600	Month to
Riverside, California	$	27,000	Month
Smyrna, Georgia	$	465,000	7/2030
Stony Point, New York	$	101,000	6/2021
Tulsa, Oklahoma	$	27,000	Month to Month

The Company rents properties and various equipment under operating leases. Rent expense for the years ended December 31, 2018, 2017 and 2016 totaled approximately $2.7 million, $1.7 million, and $1.4 million, respectively. In addition to the properties above, the Company does at times utilize public warehouse space on a month to month basis. The Company typically enters into short-term leases for the facilities and wherever possible extends the expiration date of such leases.

Future commitments under operating leases are summarized as follows:

Years ended December 31,	Amount
(in thousands)
-2019	$	2,952
-2020		2,055
-2021		1,619
-2022		684
-2023		498
Thereafter		3,422
Total	$	11,230

Legal Proceedings

On April 1, 1999, the Company reported a release of approximately 7,800 lbs. of R-11 refrigerant (the “1999 Release”), at its former leased facility in Hillburn, NY (the “Hillburn Facility”), which the Company vacated in June 2006.

Since September 2000, last modified in March 2013, the Company signed an Order on Consent with the New York State Department of Environmental Conservation (“DEC”) whereby the Company agreed to operate a remediation system to reduce R-11 refrigerant levels in the groundwater under and around the Hillburn Facility and agreed to perform periodic testing at the Hillburn Facility until remaining groundwater contamination has been effectively abated. The Company accrued, as an expense in its consolidated financial statements, the costs that the Company believes it will incur in connection with its compliance with the Order of Consent through December 31, 2018. There can be no assurance that additional testing will not be required or that the Company will not incur additional costs and such costs in excess of the Company’s estimate may have a material adverse effect on the Company financial condition or results of operations. The Company has exhausted all insurance proceeds available for the 1999 Release under all applicable policies.

In May 2000, the Hillburn Facility as a result of the 1999 Release, was nominated by EPA for listing on the National Priorities List (“NPL”) pursuant to CERCLA. In September 2003, the EPA advised the Company that it had no current plans to finalize the process for listing of the Hillburn Facility on the NPL.

The remaining liability on our Balance Sheet as of December 31, 2018 with respect to the Hillburn Facility is approximately $144,000. There can be no assurance that the ultimate outcome of the 1999 Release will not have a material adverse effect on the Company's financial condition and results of operations. There can be no assurance that the EPA will not change its current plans and seek to finalize the process of listing the Hillburn Facility on the NPL, or that the ultimate outcome of such a listing will not have a material adverse effect on the Company's financial condition and results of operations.