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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, 2010, future estimated minimum lease payments through FY 2025 are as follows:

FUTURE ESTIMATED MINIMUM LEASE PAYMENTS
Fiscal Year Dollars
2011 $13,532,172
2012 13,334,015
2013 12,361,180
2014 12,608,931
2015 12,676,218
2016 4,541,493
2017 4,636,840
2018 4,734,105
2019 4,833,307
2020 4,934,462
2021 5,086,980
2022 4,798,802
2023 3,694,929
2024 3,769,016
2025 3,844,279
Total Minimum lease payments 109,386,729
Add: Amount representing estimated executory costs (taxes, maintenance, and insurance) 19,643,437
TOTAL MINIMUM LEASE PAYMENTS, INCLUDING ESTIMATED EXECUTORY COSTS $129,030,166

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 paid by the landlord. In FY 2010, the Commission received $6,629,880 in incentive awards for the renovation of space in Washington D.C. and Chicago. A deferred lease liability representing expense amounts in excess of payments to date has been recorded. The deferred lease liabilities at September 30, 2010 and September 30, 2009 were $12,174,352 and $3,226,161 respectively.

 

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