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Note 9. Leases

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The CFTC leases office space in publicly owned buildings for its locations in Washington D.C., Chicago, New York, and Kansas City. The lease contracts for publicly owned buildings are operating leases. The CFTC has no real property. Future estimated minimum lease payments are not accrued as liabilities and are expensed on a straight-line basis.

As of September 30, 2011, future estimated minimum lease payments are as follows:

FUTURE ESTIMATED MINIMUM LEASE PAYMENTS
Fiscal Year Dollars
2012 $17,040,876
2013 16,179,500
2014 16,508,689
2015 16,652,592
2016 17,275,726
2017 and thereafter 165,205,706
Total Future Minimum Lease Payments $248,863,089
Add: Amount representing estimated executory costs (taxes, maintenance, and insurance) 37,526,229
TOTAL MINIMUM LEASE PAYMENTS, INCLUDING ESTIMATED EXECUTORY COSTS $286,389,318

Lease expense is recognized on a straight-line basis because lease payment amounts vary, and in some cases, CFTC receives periods of up-front free rent, or incentive contributions (TIA) paid by the landlord. As of September 30, 2011, the Commission had received $13,331,074 in incentive awards for the renovation of space in Washington D.C., Chicago, and Kansas City. A deferred lease liability representing expense amounts in excess of payments to date has been recorded. The deferred lease liabilities at September 30, 2011 and September 30, 2010 were $21,974,782 and $12,174,352 respectively.

 

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