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, 2009, future estimated minimum lease payments through FY 2015 are as follows:
Total Minimum lease payments
|Add: Amount representing estimated executory costs (taxes, maintenance, and insurance)||11,943,803|
|TOTAL MINIMUM LEASE PAYMENTS, INCLUDING ESTIMATED EXECUTORY COSTS||$68,819,060|
Lease expense is recognized on a straight-line basis. Because the lease payment amounts vary, and in some cases, CFTC receives periods of up-front free rent, a deferred lease liability representing expense amounts in excess of payments to date has been recorded. The deferred lease liabilities at September 30, 2009 and September 30, 2008 were $3,226,161 and $3,294,324, respectively.