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Note 10. 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, 2012, future estimated minimum lease payments through FY 2025 are as follows:

FUTURE ESTIMATED MINIMUM LEASE PAYMENTS
Fiscal Year Dollars
2013 $17,781,576
2014 18,110,766
2015 18,254,669
2016 19,017,114
2017 19,411,711
2018 and thereafter 155,776,015
Total Future Minimum Lease Payments $248,351,850
Add: Amount representing estimated executory costs (taxes, maintenance, and insurance) 37,355,082
TOTAL MINIMUM LEASE PAYMENTS, INCLUDING ESTIMATED EXECUTORY COSTS $285,706,932

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, 2012, the Commission had received $16,199,394 in incentive awards for the renovation of space in Washington D.C., Chicago, New York 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, 2012 and September 30, 2011 were $24,808,042 and $21,974,782 respectively.

 

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