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Note 8. 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, 2009, future estimated minimum lease payments through FY 2015 are as follows:

Future Estimated Minimum Lease Payments
Fiscal Year Dollars
2010 $10,970,480
2011 11,268,766
2012 9,898,728
2013 8,147,303
2014 8,306,539
2015 8,283,441
Total Minimum lease payments
56,875,257
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.