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