Note 8. Leases
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:
| 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.
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